SACRAMENTO, Calif., April 6, 2026 /PRNewswire/ -- A surge in predatory lawsuits under the outdated California Invasion of Privacy Act (CIPA) is inflicting severe economic and community harm across the state. To stop these damaging legal shakedowns and protect affordability for California families, a broad coalition of nonprofits, community organizations, and businesses has launched ReformCIPA.com.

This growing coalition supports legislative solutions like SB 690 to curb this economic and community burden by ensuring modern digital practices are governed by modern privacy laws, rather than a statute written decades before the internet existed. Originally designed in the 1960s to prevent wiretapping, the law is now being exploited by trial lawyers to target organizations over routine website tools, such as chat features and analytics.

"SB 690 helps protect patient privacy while stopping the misuse of an outdated law against providers using standard technology," said Soua Vang, President & CEO, California Association for Health Services at Home. "It is a first step to restoring clarity and fairness, and keeps the focus where it should be - on patient care."

Economic Devastation and Rising Costs
These abusive lawsuits are making it increasingly difficult to operate affordably in California. Organizations, including non-profits are flooded with "pay up or get sued" demand letters, and because fighting these claims in court is often more expensive than settling, many are pressured into paying massive, unjust settlements. These legal shakedowns ultimately function as a hidden tax on consumers.

"At a time when affordability is one of the biggest challenges facing California families and California is facing budget deficits, we should not allow predatory lawsuits to drive up costs," said Robert Rivinius, President, Family Business Association of California. "Amending CIPA will protect consumers while stopping legal shakedowns that hurt small businesses and the communities they serve."

With everyday Californians already struggling under the weight of rising housing, energy, food, and healthcare costs, forcing small businesses to spend thousands on legal defense guarantees those financial burdens are passed directly to families that can't afford these prices. Furthermore, this economic drain is happening at a time when the state itself is already facing significant budget deficits and affordability crises.

Draining Community Resources
Beyond the direct economic strain, this wave of litigation is actively damaging local communities. Essential sectors, including healthcare providers, non-profit organizations, and small businesses, are being heavily targeted. Instead of genuinely protecting privacy—which is already robustly guarded by modern laws like the California Consumer Privacy Act (CCPA)—these lawsuits penalize community organizations simply for using standard online tools meant to help them better serve the public. By draining time and vital funds from these groups, predatory litigation directly hurts the vulnerable communities that rely on their services.

To learn more or join the coalition, visit ReformCIPA.com.

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SOURCE Reform CIPA