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Reform CIPA Coalition Backs SB 690 to Protect Small Businesses From CIPA Lawsuits
Small Business Month is typically about spotlighting local owners and encouraging communities to shop local. This year, the Reform CIPA Coalition is pairing that celebration with a policy push: modernize the California Invasion of Privacy Act (CIPA) by passing Senate Bill 690.
The coalition says small businesses are being hit with abusive litigation tied to outdated interpretations of a 1960s law—often over routine website tools used to serve customers.
Why the coalition says reform is urgent
The Reform CIPA Coalition argues that common online tools can become legal tripwires under certain CIPA interpretations, even when businesses are using them in ordinary, customer-facing ways. Examples cited include:
- Website chat features
- Appointment scheduling tools
- Analytics tools used to understand site performance
Supporters say these tools are already addressed under California’s consumer privacy framework, and that predatory lawsuits exploit legal ambiguity rather than genuine privacy harm.
Coalition growth: small businesses and statewide business groups
The coalition says it now includes 146 members, including more than 30 individual small businesses and nearly 40 organizations representing small business interests across California.
Coalition members say the expanding roster reflects a shared concern: legal uncertainty can translate into real costs for local employers and entrepreneurs.
What SB 690 would do
Supporters of SB 690 say the bill would clarify that activities already governed under the California Consumer Privacy Act (CCPA) are not grounds for opportunistic CIPA claims—while maintaining strong privacy protections for consumers.
Michael Hedges, President of the California Small Business Association, said an outdated law should not be “weaponized” against businesses using everyday technologies such as chat tools, scheduling, or analytics. He argued that these lawsuits raise costs, discourage investment, and make it harder for small businesses to grow.
The affordability argument: legal costs don’t stay in the courtroom
Coalition leaders also framed the issue as an affordability problem.
Mitchell Vieyra, Executive Vice President of the Los Angeles County Business Federation (BizFed), said that when small businesses are forced to spend money defending meritless lawsuits, the impact spreads beyond legal fees. Those costs can affect hiring, pricing, and the stability of local communities.
A small business owner’s view
Michelle Leopold, Owner/CMO of Stan’s Ace Hardware, said small businesses are already dealing with rising costs, labor pressures, and economic uncertainty. Being sued over routine website tools—tools used to communicate with customers and stay competitive—adds another burden.
Leopold said reforming CIPA would protect small businesses from abusive litigation while preserving strong privacy protections.
What happens next
As Small Business Month continues, Reform CIPA Coalition members are urging lawmakers to advance SB 690 as a modernization effort: clearer rules for modern digital operations, without rolling back consumer privacy.
For small businesses, supporters say the stakes are straightforward—less ambiguity, fewer opportunistic lawsuits, and more room to invest in service, staffing, and growth.
Source: Reform CIPA (press release distributed via PRNewswire, May 8, 2026).
Related: SB-690 Crimes: invasion of privacy
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