Ensure Your Website’s CIPA Compliance: Avoid Costly Lawsuits
As a business owner, you might not be aware of a looming legal risk that could impact your website: the California Invasion of Privacy Act (CIPA). Originally designed to regulate phone call tracking, this 30-year-old privacy law is now being used against website owners, including those outside of California. The potential financial impact is significant, with demand letters starting at $50,000 (Termageddon, n.d.).
What You Need to Know About CIPA Compliance
CIPA was enacted to protect Californians from unauthorized monitoring during phone calls. However, recent lawsuits are applying this law to websites that use third-party tracking technologies without obtaining explicit consent from visitors. This could affect anyone with a website, regardless of their business size or location (Termageddon, n.d.).
Key points about CIPA compliance:
- CIPA is intended to prevent unauthorized tracking and monitoring of Californians (Termageddon, n.d.).
- Recent lawsuits target websites using technologies like ad pixels and IP intelligence tools without user consent (Termageddon, n.d.).
- Both large and small businesses are at risk, with high-profile companies like CNN and the LA Times already facing lawsuits (Termageddon, n.d.).
- The smallest settlement reported is $6,500, excluding legal fees, and initial demands can exceed $50,000 (Termageddon, n.d.).
- Roughly 50% of these lawsuits are dismissed, but defending a case can still be expensive, with costs starting around $7,500 (Termageddon, n.d.).
Steps to Ensure Your Business’s CIPA Compliance
Implement Consent Banners
Ensure your website has an opt-in consent banner that blocks third-party tracking scripts unless the visitor consents. This is crucial for complying with CIPA, especially if you have visitors from California. Using solutions like those offered by Termageddon can simplify this process (Termageddon, n.d.).
Educate Yourself and Your Team
Understanding CIPA and its implications is essential. Make sure your team is aware of the legal requirements and the importance of obtaining visitor consent before using tracking technologies (Termageddon, n.d.).
Review and Update Your Policies
Regularly review your website policies to ensure they are up-to-date and compliant with current privacy laws. If you haven’t already, consider adding a website policies waiver that clients can sign, acknowledging their responsibility for legal compliance (Termageddon, n.d.).
Stay Informed
Privacy laws are constantly evolving. Stay updated on the latest developments to ensure your business remains compliant and avoid potential legal risks (Termageddon, n.d.).
What can you do?
To ensure your website is compliant and to avoid costly CIPA lawsuits, consider using a comprehensive solution like Termageddon. Our team at WebArc Technologies can assist you in reviewing your website policies and implementing necessary compliance measures. Protect your business and gain peace of mind today by contacting us for a consultation.