Website Privacy Warning: Rising CIPA Claims Targeting Contractors
Updated: Aug 24
California’s Invasion of Privacy Act (CIPA) has become a growing source of nuisance claims against contractors nationwide, which could carry a $15,000+ bill! This includes recent “Informal Dispute Resolution” demands alleging unlawful use of website tracking tools or “pen registers.” These claims typically argue that cookies or tracking scripts were deployed before a visitor gave consent — a key trigger under CIPA.
A recent case within the Western Michigan MCA prompted immediate updates to ensure compliance, including adding a full cookie banner with Accept / Reject / Manage options, preventing tracking scripts from loading until consent is given, and adding clear Privacy Statement and Terms of Use links. These steps reflect the baseline protections every contractor should review. It should be noted that this is not the first company that has been sued and appears to be an active campaign, and we hope that this article helps our contractors to avoid becoming a target.
What Contractors Should Check on Their Websites
Cookie Use — If your site uses no cookies, you’re generally in the clear. If it does, you may face exposure.
Cookie Banner — Sites using cookies must display a pop‑up banner with Accept/Reject options and a visible Privacy Policy.
Consent Before Tracking — If cookies or scripts fire before a visitor clicks Accept, that is a definite compliance issue and should be corrected immediately.
Ongoing Preference Management — Visitors must be able to change their cookie settings after the initial selection.
These checks reflect the exact scenarios that have triggered CIPA complaints across multiple industries.
Legislative Update
California’s House has passed amendments to modernize CIPA, and the bill is now awaiting Senate action following summer recess. Until final changes are enacted, contractors should assume current CIPA standards remain enforceable and continue to protect themselves accordingly.
For more information on California’s Invasion of Privacy Act and current statutory language, members can review the official California code here:
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