Small business owners struggling to make payroll after settling shakedown lawsuits for $10K–$50K.
Nonprofits and news organizations facing billions in liability despite complying with California’s privacy laws.
Companies settling once—only to receive another demand letter from a different law firm.
California already has a strong consumer privacy law—the CCPA (California Consumer Privacy Act)—which regulates how businesses collect, use, and share consumer data. Instead of following this comprehensive framework, trial lawyers are exploiting an outdated criminal statute to extract settlements from businesses already following the law.
This legislation has led to real, harmful consequences for nonprofits and businesses across California. These are just a few examples of thousands:
Nonprofits have been sued, diverting critical resources away from their missions.
A small business received a $12,000 demand letter—unable to afford legal defense, they settled and couldn’t make payroll the next month.
A Los Angeles small business was sued after ignoring a demand letter—not out of negligence, but because their store had burned down in the LA fires.
Another small business settled a case, only to receive a second demand letter from the same law firm just a month later.
Yet another small business faced a second demand letter—this time from a different law firm—after settling the first one.
A large California newspaper spent millions to comply with CCPA’s complex opt-out rules for online data, only to be sued for billions for allegedly not securing opt-in consent for ads.
This common-sense solution ensures that businesses operating in accordance with the CCPA cannot be sued under CIPA for routine online operations.
Clarifies that business’ privacy practices fall under CCPA—not a criminal statute.
Stops exploitative lawsuits while preserving real consumer privacy protections.
Ensures California businesses and nonprofits can operate without fear of endless litigation.
Paid for by the Alliance for Legal Fairness