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Tracking Technology Trends and Risk Mitigation Techniques
U.S. companies face a massive wave of wiretapping law class action lawsuits and regulatory enforcement actions over online “tracking technologies.” Nearly every company with a website or app uses pixels, SDKs, cookies, session-replay technology, and chat/chatbot tools, putting them in the crosshairs. In California alone, plaintiffs have reportedly filed more than 1,800 lawsuits since 2022 under the state’s two-party consent wiretapping law (the California Invasion of Privacy Act (CIPA)). These laws carry statutory damages (e.g., up to $5,000 per violation under CIPA), which makes them an extremely attractive target for class action plaintiff attorneys. Plaintiffs’ attorneys have also issued thousands of demand letters, the settlement of which has helped build a war chest for funding further litigation.
While court rulings are mixed, these cases have legs — plaintiffs often survive dismissal and reach discovery, and some classes have been certified. In August 2025, a major social media company was found liable by a jury under CIPA and faces enormous statutory damages tied to tens of millions of alleged violations. In this environment, the number of attorneys bringing claims and the pace of filings is likely to increase rapidly.
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