Privacy law is being weaponized against small businesses
Privacy law is being weaponized against small businesses
Publish Date: 2026-05-02 15:00:00
Source Domain: www.vcstar.com
May 2, 2026, 12:00 p.m. PT
When a 1960s law is being used to shake down small businesses over ordinary website tools, something has gone badly off course, and it is time for Sacramento to act.
The Simi Valley Chamber of Commerce is increasingly concerned about a growing threat to affordability and economic stability in California: predatory lawsuits filed under the California Invasion of Privacy Act, better known as CIPA.
CIPA was written more than 60 years ago, long before anyone imagined the modern websites, online scheduling, customer analytics, or chat features used every day by Simi Valley businesses. Yet today, the law is stretched far beyond its original purpose to target local businesses for employing standard tools that help them serve customers and compete.
These cases often do not involve a data breach or the sale of private information. In many instances, they are simply lawsuits in search of a payout. The businesses being targeted are neighborhood employers, family-owned shops, and community-serving enterprises simply trying to operate in a modern economy. They are being penalized not for wrongdoing, but for using commonplace digital tools consumers now expect.
That may be good business for trial lawyers. It is not good for small business owners, working families, or the communities that depend on them.
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For a small business, even a meritless lawsuit can mean tens of thousands of dollars in legal fees. That money has to come from somewhere. It means higher prices, delayed hiring, less investment, and one more reason it becomes harder to do business in California. At a time when many employers are already contending with inflation, labor shortages, and rising operating costs, this kind of legal abuse only adds another burden that local businesses should not have to shoulder.
That is why we support reforming CIPA and urge the legislature to pass Senate Bill 690 by Senator Anna…
