Predatory lawsuits under an outdated law are increasing costs for California families and small businesses; SB 690 would align rules with modern privacy protections.
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Californians are already paying too much for everything, from groceries and child care to housing and health care. But there’s a hidden cost driving prices even higher, and most people don’t even realize it exists: predatory lawsuits filed against small businesses and nonprofits under an outdated law written more than 60 years ago.
That’s why legislation now moving through Sacramento, Senate Bill 690, authored by Sen. Anna Caballero, D-Merced, is so important. SB 690 would start tackling this issue by clarifying that modern, widely used website tools are governed by today’s privacy laws, not a decades-old statute never intended for the digital age.
The bill is currently advancing through the Legislature and represents a commonsense first step to curbing abusive litigation while maintaining strong consumer protections.
The need for reform is urgent. According to a 2025 study by The Perryman Group, lawsuit abuse costs the average California family $8,306 per year in higher prices and reduced earnings — the highest burden in the nation.
I work with small businesses across California every day, such as family-owned restaurants, local retailers, neighborhood service providers and community nonprofits operating on thin margins. They are doing their best to survive in one of the most expensive states in the nation.
Now, many of them are being hit with costly lawsuits under a wiretapping law written in the 1960s, long before the internet even existed: the California Invasion of Privacy Act.
These lawsuits don’t allege data breaches or involve misuse of personal information. Instead, they target businesses simply for using standard website tools that help companies understand customer needs, improve services and remain competitive in a digital economy.
Defending against these lawsuits can cost tens of thousands of dollars or more. For many small businesses and nonprofits, that money has to come from somewhere, be it higher prices, cutting staff hours or delaying new hires and sometimes even shutting down.
When a neighborhood business is forced to spend scarce resources on legal fees instead of operations, the entire community pays the price. Every settlement check written to a predatory attorney is money that could have gone toward lowering prices, raising wages or expanding services.
At a time when affordability is already one of California’s greatest challenges, these lawsuits are quietly making life more expensive for everyone.
What makes this even more frustrating is that California already leads the nation with its strong, modern privacy laws. The California Consumer Privacy Act, for example, was specifically designed to protect consumers in today’s digital world, providing clear rules for businesses and meaningful safeguards for consumers.
Yet, instead of relying on these modern protections, some attorneys are exploiting an obsolete statute to generate lawsuits that do nothing to improve privacy, but do plenty to increase costs.
This doesn’t just harm businesses; it harms consumers, workers and the economic health of our communities.
SB 690 offers a path forward by aligning outdated law with modern technology and existing privacy protections. It would restore balance, reduce abusive litigation and allow small businesses to focus on serving their customers, not defending against opportunistic lawsuits.
If we want California to be a place where small businesses can survive and where families can afford everyday necessities, we must address the hidden costs driving prices upward. Reforming the California Invasion of Privacy Act through SB 690 is a commonsense step toward this goal.
Scott Miller is president and CEO of the Fresno Chamber of Commerce.
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