Some businesses have received letters under California’s Invasion of Privacy Act arguing that a chat widget or session-replay tool intercepted the contents of a communication under Penal Code section 631. Those are legal theories, and courts have not treated them the same way in every case. A person injured by a violation may seek $5,000 per violation, or three times actual damages if that amount is greater, and does not have to show actual harm to bring the claim. Section 631 is unchanged by the 2026 amendment described below.
A 2026 change to that statute, Senate Bill 690, takes effect on January 1, 2027. From that date, a private person will no longer be able to bring a section 638.51 claim that arises from conduct on a website or app; only the California Attorney General may bring that kind of claim. Tracking pixels have often been argued under that section. The underlying rules about pen registers are unchanged, so pixels are still worth reviewing, but they are not the first thing I look at. I can’t tell you what a letter you receive would be worth, or how you should respond. Talk to an attorney about that.
Iowa also has its own consumer privacy law. The Iowa Consumer Data Protection Act, Iowa Code chapter 715D, took effect on January 1, 2025. It applies to a business that conducts business in Iowa, or targets Iowa residents, and that during a calendar year either controls or processes personal data of at least 100,000 consumers, or of at least 25,000 consumers while also deriving more than half of its gross revenue from selling personal data. The Iowa Attorney General has exclusive authority to enforce the chapter. Before filing an action, the Attorney General must give 90 days’ written notice and a chance to fix the issue. The statute says it does not create a private right of action. If an action goes forward after that notice period, the Attorney General may seek an injunction and civil penalties of up to $7,500 for each violation.
Those Iowa thresholds are high. Many Iowa and Midwest small businesses will not meet them. I can’t tell you whether your business is in or out of scope. That is a question for an attorney.