California is the fifth largest economy in the world. It is a hotbed for class actions that seek to take advantage of robust consumer protection laws and hospitable courts. Businesses that are based in California are well-acquainted with the minefield of litigation risk and take steps to mitigate it. But companies that are based outside of California might be less familiar with the laws that might apply if they have customers in the state.
California Invasion of Privacy Act (CIPA)
CIPA—California’s wiretapping law codified at Cal. Penal Code Section 630, et seq.—prohibits the unauthorized interception and recording of certain communications. California, like Pennsylvania, is a “two-party consent” state. CIPA was intended to address eavesdropping on private conversations where either or both parties to those communications were unaware of that activity. CIPA contains a robust private right of action that permits the recovery of $5,000 per violation with no cap on aggregate damages. Courts have held that CIPA is not preempted by the federal Wiretap Act.
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