During Small Business Month, Reform CIPA Coalition Says Best Way to Support Small Businesses Is to Reform CIPA

Coalition now includes more than 30 small businesses and nearly 40 organizations representing small business interests statewide

SACRAMENTO, Calif., May 8, 2026 /PRNewswire/ -- One of the best ways to celebrate and support small businesses this May is to protect them from abusive litigation tied to outdated interpretations of a 1960s law. In recognition of Small Business Month, the Reform CIPA Coalition today called on California policymakers  to modernize the California Invasion of Privacy Act (CIPA), by passing SB 690. The Reform CIPA Coalition continues to grow. Among its 146 coalition members, more than 30 individual small businesses and over 40 organizations representing small business interests across California have joined the movement. Coalition members say momentum is building around the need to clarify that commonplace online tools already regulated under California's consumer privacy laws should not trigger predatory lawsuits.

"An outdated 1960s law should not be weaponized against businesses using everyday technologies like chat features, appointment scheduling, or analytics tools. These lawsuits drive up costs, discourage investment, and make it harder for small businesses to grow. Senate Bill 690 offers a commonsense fix, and that's why support for reform continues to expand," said Michael Hedges, President of the California Small Business Association.

Coalition leaders said reform is not only about legal clarity, but affordability.

"This is an affordability issue caused by a legal issue. When small businesses, like many here in Los Angeles, are forced to spend money defending meritless lawsuits, those costs ripple through the economy. They affect jobs, prices, and local communities. A growing coalition of business leaders is coming together because California needs clear, modern rules that protect privacy without punishing responsible businesses," said Mitchell Vieyra, Executive Vice President of the Los Angeles County Business Federation (BizFed).

A coalition small business member added:

"California's small businesses are already navigating rising costs, labor pressures, and economic uncertainty. Being hit with lawsuits over routine website tools that help us communicate with customers and stay competitive is deeply unfair. Reforming CIPA is about protecting small businesses from abusive litigation while preserving strong privacy protections. That's why more business owners are joining the Reform CIPA Coalition." — Michelle Leopold, Owner/CMO, Stan's Ace Hardware

Supporters say the best way to celebrate Small Business Month is to enact reforms that help small businesses survive and grow, not leave them vulnerable to costly lawsuits over routine technologies used every day to serve customers.

Senate Bill 690 would clarify that activities already governed under the California Consumer Privacy Act are not grounds for opportunistic CIPA claims, while maintaining strong privacy protections for consumers.

As Small Business Month continues, Reform CIPA Coalition members urged lawmakers to stand with local employers, entrepreneurs and job creators by advancing common sense reform.

SOURCE Reform CIPA