Warning to MBA Members: Businesses Being Targeted in New Website Privacy Lawsuits

Dear Members,

We want to make you aware of a growing legal issue impacting businesses across California, including companies in the construction industry.

One of our members was recently served with a lawsuit related to the California Invasion of Privacy Act (CIPA). The claim alleges that the company’s website used a tracking pixel or similar website technology without obtaining proper visitor consent. Like many businesses, the member was unaware that their website configuration could create potential legal exposure. They have made us aware of this to help fellow members and our community avoid the same issue.

Unfortunately, attorneys are actively targeting businesses—particularly small and mid-sized companies—by scanning websites for alleged privacy compliance violations. These lawsuits often focus on:

• Website tracking pixels
• Chat features
• Analytics tools
• Session replay software
• Cookies and data collection technologies

Even when violations are unintentional, businesses can still face significant legal expenses and settlement demands.

We strongly encourage all members to review their websites and confirm compliance with applicable California laws, including:

• California Invasion of Privacy Act (CIPA)
• California Consumer Data Access and Fraud Act (CDAFA)
• Unfair Competition Law (UCL)
• Americans with Disabilities Act (ADA) website accessibility requirements

Recommended action steps:

1. Review all tracking tools, pixels, cookies, and third-party integrations on your website.
2. Ensure you have a compliant cookie consent and privacy notice system.
3. Verify that website visitors are properly informed about data collection practices.
4. Consult with a qualified website privacy attorney or compliance consultant.
5. Conduct an ADA accessibility review of your website.

For additional information and resources, see this legal summary from Jackson Walker LLP.

Please note that this message is intended for informational purposes only and should not be considered legal advice.

We encourage members to be proactive now to help reduce the risk of costly litigation later.