The amended bill's current language and the Assembly's timeline for reconsideration remain unclear. The original legislation was designed to take effect in January 2026 and would have applied only prospectively, not retroactively.
The stakes are substantial for defendants. CIPA's $5,000-per-violation statutory damages provision has fueled an explosion of class actions and pre-suit demand letters targeting companies for routine web activities. The eliminated exemption would have aligned CIPA more closely with the California Consumer Privacy Act (CCPA) by clarifying that commercial tracking fell outside CIPA's scope. Without it, businesses face continued uncertainty about whether ordinary online technologies expose them to liability. Counsel defending CIPA claims should monitor the Assembly's next move closely—the bill's fate will determine whether this litigation wave intensifies or recedes.