North Bay firms urge Newsom to sign website privacy lawsuit reform bill

September 20, 2026 - 18:16

Construction companies and other small businesses across Sonoma, Marin and Solano counties are adding their voices to a growing statewide push for changes to California's website privacy law. They say a wave of lawsuits tied to the California Invasion of Privacy Act, known as CIPA, has become a financial burden that many smaller operations cannot absorb.

The businesses are urging Governor Gavin Newsom to sign SB 690, a reform bill that aims to curb what critics describe as abusive litigation. Under current rules, companies can face claims over how their websites handle visitor data, tracking tools and chat features. Owners argue that many of these suits target technical violations rather than real harm, and that settlement demands often force them to pay up simply to avoid costly court battles.

Supporters of the bill say it would bring clearer standards and reduce the incentive for shakedown-style claims. Opponents worry the changes could weaken consumer protections at a time when online privacy concerns remain high.

For local contractors and service providers, the debate is not abstract. They say legal notices and demand letters divert money that would otherwise go toward hiring, equipment and daily operations. With the bill now sitting on the governor's desk, these business owners are waiting to see whether their calls for relief will be answered.