The following information is provided by Michael J. Karlin, Partner at Karlin Law Firm, LLP.
Law firms are now filing lawsuits claiming that Data Collection methods that capture a user’s IP address violate wiretapping laws. They are also claiming that many Chat Boxes violate some of the same laws.
CHAT BOXES
Law firms are claiming that Chat Boxes violate wiretapping laws. They claim it is illegal to intercept or record any communication, whether it’s wire, oral, or electronic, without the consent of all parties to the communication, particularly if a third-party provider of a Chat Box can obtain access to some or all of the data, information, or chat. While we strongly disagree with these interpretations of the law, there are simple strategies that can be implemented to avoid such claims.
DATA COLLECTION
Law firms are also filing lawsuits against websites that capture, directly or indirectly, the IP address of website users. They claim that obtaining the IP address of a visitor to your website violates these wiretapping or other privacy laws. Sometimes owners of websites are not even aware that such data collection has been installed on their websites.
Here are some examples of the allegations from recent lawsuits
1. In a recent lawsuit the plaintiff alleged that “the defendant, through its website, allows a third-party spyware company to eavesdrop on private conversations conducted via the website's chat feature. The spyware company then exploits and monetizes this data.” The plaintiff asserted that this conduct violates the California Invasion of Privacy Act (CIPA).
2. In another lawsuit the plaintiff alleged that “the defendant unlawfully installed third-party spyware on its website without informing or obtaining consent from visitors like the plaintiff. The spyware, identified as Lead Feeder, allegedly de-anonymizes anonymous visitors, gathering their names, faces, locations, email addresses, and browsing histories.” The plaintiff argued that this action violates the right to online anonymity and constitutes an intrusion on personal privacy. In this lawsuit, the plaintiff claimed that such actions violate California's Unauthorized Access to Computer Data Act (CUCA), specifically Penal Code Section 502, which prohibits accessing computer data without authorization.
3. In yet another lawsuit, the plaintiff claimed that capturing a user’s IP address can, depending on how it’s used, violate certain CIPA and California Penal Code Sections, such as 638.50 and 638.51.
CORPORATE TRANSPARENCY ACT
All businesses should be aware of the new filing requirements under the Corporate Transparency Act that went into effect in January of this year. The Corporate Transparency Act requires all active business entities (including but not limited to LLCs and Corporations) to file a Beneficial Owners Information form with the Federal Government by the end of the year. Additionally, for any entity formed after January 2024, this same filing is required within 30 days of the formation of the business entity.
Please contact the AutoNetTV Customer Success team at (801) 492-9900 or email us at support@autonettv.com.
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