Emerging Website Privacy Claims: What Your Organization Should Know

Part of managing risk effectively is staying informed about emerging threats before they become costly distractions. There is a growing litigation trend affecting accounting firms and other organizations that maintain public-facing websites.

Across the country, a number of businesses are receiving nearly identical demand letters from serial plaintiffs alleging violations of California's Invasion of Privacy Act (CIPA), Cal. Penal Code § 638.51(a). These claims focus on the use of common website tracking technologies, such as pixels, tags and analytics tools that share visitor data with platforms like Google, Facebook or LinkedIn. The allegations center on the theory that certain tracking technologies may function as unlawful "pen registers" under California law, potentially exposing organizations to legal risk.

Importantly, this issue extends beyond simply having a Privacy Policy posted on your website. Plaintiffs are increasingly scrutinizing whether website visitors from California are given a meaningful opportunity to accept or decline non-essential tracking technologies before those tools begin collecting data.

For many organizations, addressing this concern may involve implementing a cookie consent banner that allows visitors to accept or reject tracking cookies. In addition, a consent management solution may be needed to prevent non-essential tracking technologies, such as Google Analytics, from activating until appropriate consent has been obtained.

Because every website and business situation is unique, concerns should be discussed with legal counsel experienced in website privacy compliance and California privacy laws. An attorney skilled in this area can review your current practices, assess any potential exposure, and help determine the most appropriate course of action.

Being aware of emerging risks is one of the best ways to protect your organization. To explore additional ways to help safeguard your business, including cyber liability and other insurance solutions, review the products available through the TXCPA Member Insurance program.