Key Changes in Privacy Litigation and Their 2026 Impact

Key Developments in Privacy Litigation and What They Mean for 2026

This year saw some big changes in privacy laws, especially regarding the California Invasion of Privacy Act (CIPA). These changes could affect how businesses operate in 2026 and beyond. Key issues included consent for data tracking, the definition of personal data, and how third-party liability is handled. This article will break down these developments and their potential impact for various groups.

Understanding CIPA Decisions on Consent

CIPA decisions were divided on important topics. One major point was about consent. Courts accepted clear click-wrap agreements and cookie banners as valid notices for users about tracking. But they didn’t consider vague statements about potential use as informed consent. This split means businesses need to be careful about how they inform users about data tracking.

Legal Battles Over Data Definitions

Another key issue was what counts as “contents.” In 2025, courts interpreted this term broadly. It now includes metadata, like user flows, which can show how consumers interact with content. This broad definition could lead to more litigation as businesses try to navigate the rules.

Third-Party Liability and Tracking Technologies

Third-party liability became a hot topic as well. Courts focused on specific technology setups, especially concerning vendor eavesdropping. A notable case involved Meta, which faced serious claims for allegedly tracking consumer data through a popular app.

Senate Bill 690 and Its Implications for Businesses

Businesses had high hopes for Senate Bill 690, which aimed to exempt routine commercial tracking from CIPA rules. The bill passed the Senate but stalled in the Assembly. This means companies will continue to face lawsuits under CIPA, at least for now. If the bill is revived in 2026, it could create a safe harbor for businesses using tracking technologies for legitimate purposes.

CCPA’s Private Right of Action Expands

In 2025, there were also new rulings about the California Consumer Privacy Act (CCPA). These rulings suggest that individuals could sue if their sensitive data is exposed through unauthorized means. This is a shift from how the law was initially used, which was mostly focused on data breaches. Now, private individuals may use the CCPA as a broader tool for privacy enforcement.

Healthcare Tracking and Regulatory Changes

In the healthcare sector, guidelines around website tracking were updated. After a court struck down a previous bulletin from HHS, the Office of Civil Rights released a new version. This new guidance expanded what is considered personal health information (PHI) to include data from unauthenticated users. However, courts have been cautious about accepting public website data as substantive medical information.

Financial Stakes and Class Action Settlements

The financial implications of these legal changes are significant. For example, Sutter Health and Kaiser Foundation Health Plan faced large settlements in 2025. The total amounts were substantial, with Sutter Health at $21.5 million and Kaiser at $47.5 million. These cases highlight the serious financial risks involved in privacy litigation.

Principles for Businesses Moving Forward

As companies look to adapt their privacy practices in light of these developments, here are some guiding principles:

• Be clear and transparent about data tracking methods.
• Ensure that consent agreements are straightforward and easy to understand.
• Stay updated on changes in laws like CIPA and CCPA.
• Review security measures to protect sensitive data.
• Prepare for potential litigation by assessing technology use and third-party partnerships.

Analyzing the Future of Privacy Laws

The landscape of privacy laws is likely to keep changing. Companies might face more lawsuits as individuals become more aware of their rights. Additionally, businesses must adapt to new regulations and evolving consumer expectations. Here are some possible future scenarios:

• More states could follow California’s lead in tightening privacy laws.
• Litigants may increasingly turn to the CCPA as a tool for enforcing privacy rights.
• Companies that proactively address privacy concerns could gain a competitive edge.
• Technological advancements may lead to new legal interpretations and challenges.

As we move forward, staying informed and adaptable will be key for businesses navigating these complex regulations.