Technology

On June 22, Texas Governor Greg Abbott (R) signed the Texas Responsible AI Governance Act (“TRAIGA”) (HB 149) into law.  The law, which takes effect on January 1, 2026, makes Texas the second state to enact comprehensive AI consumer protection legislation, following the 2024 enactment of the Colorado

Continue Reading Texas Enacts AI Consumer Protection Law

“Session replay” software is one of many website analytics tools targeted in wiretapping suits under the California Invasion of Privacy Act (“CIPA”).  Last month, a California federal court confirmed one of the many reasons why the use of this software does not violate CIPA section 631: A defendant cannot “read” (or attempt to read) session replay data “in transit,” as CIPA requires, because “events recorded by” this software “do not become readable content until after they are stored and reassembled into a session replay.”  Torres v. Prudential Financial, Inc., 2025 WL 1135088 (N.D. Cal. Apr. 17, 2025). Continue Reading Court Grants Summary Judgment: Website Vendor Cannot Read “Session Replay” Data “In Transit” Under CIPA

Plaintiffs’ lawyers have continued to bring privacy claims targeting businesses that use vendors to help provide beneficial chat features on their website, as we last reported here.  Late last year, a Southern District of California judge dismissed another set of privacy claims challenging the routine use of these vendor services by Tonal, a popular smart home gym company named as the sole defendant in the lawsuit.  Jones v. Tonal Systems, Inc., 751 F. Supp. 3d 1025 (S.D. Cal. 2024).

Plaintiff Julie Jones, a California resident, claimed that she had visited Tonal’s website and used its chat feature to communicate with a Tonal customer service representative.  This chat feature allegedly incorporated an API run by another company to create and store transcripts of website visitors’ chats with Tonal’s customer service representatives.  According to the complaint, this alleged conduct constituted wiretapping, which Tonal purportedly aided and abetted in violation of Sections 631 and 632.7 of the California Invasion of Privacy Act (“CIPA”).  Plaintiff also asserted other privacy claims based on the same alleged conduct, including the California Unfair Competition Law (“UCL”) and the California Constitution’s right to privacy provision.

The Court granted Tonal’s motion to dismiss each of plaintiff’s claims on multiple grounds. Continue Reading Another California Court Rejects Privacy Claims Targeting Online Chat Feature

Website analytics and advertising tools, such as pixels, are regularly targeted in lawsuits brought under various wiretap laws, including the federal Wiretap Act and the California Invasion of Privacy Act (“CIPA”).  We cover significant developments and trends in website wiretapping lawsuits on Inside Class Actions.  Over the last several months, we have featured posts discussing an important decision from Massachusetts’ highest court about the availability of website wiretap suits under Massachusetts law, an opinion from a California court about a new “pen register” theory under CIPA, and more.  These posts, and other highlights, include the following:Continue Reading Website Wiretapping Litigation: Recent Decisions and Developments

Last month, a New Jersey federal judge applied Third Circuit precedent to hold that the California Invasion of Privacy Act (“CIPA”) does not impose liability for commonplace use of website marketing/analytics pixels under the well-established party exception.  Cole v. Quest Diagnostics, Inc., 2025 WL 88703 (D.N.J. Jan. 14, 2025).Continue Reading New Jersey Court Applies CIPA’s Party Exception to Pixel Wiretap Complaint

This quarterly update highlights key legislative, regulatory, and litigation developments in the second quarter of 2024 related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), and data privacy and cybersecurity. Continue Reading U.S. Tech Legislative, Regulatory & Litigation Update – Second Quarter 2024

A new post on the Covington Inside Global Tech blog highlights key legislative, regulatory, and litigation developments in the fourth quarter of 2023 and early January 2024 related to technology issues.  These included developments related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), data privacy, and cybersecurity. As noted

Continue Reading U.S. Tech Legislative, Regulatory & Litigation Update – Fourth Quarter 2023

Technology companies are grappling with unprecedented changes that promise to accelerate exponentially in the challenging period ahead. We invite you to join Covington experts and invited presenters from around the world to explore the key issues faced by businesses developing or deploying cutting-edge technologies. These highly concentrated sessions are packed

Continue Reading Covington’s Fifth Annual Technology Forum – Looking Ahead: New Legal Frontiers for the Tech Industry

In late December 2023, the Federal Communications Commission (“FCC”) published a Report and Order (“Order”) expanding the scope of the data breach notification rules (“Rules”) applicable to telecommunications carriers and interconnected VoIP (“iVoIP”) providers.  The Order makes several notable changes to the prior rules, including broadening the definitions of a reportable “breach” and “covered data,” requiring covered entities to notify the FCC in addition to federal law enforcement of breaches, and modifying certain customer notification requirements.  The Rules are expected to become effective sometime in 2024, after they are reviewed by the Office of Management and Budget and the FCC’s Wireline Competition Bureau (“Bureau”) announces the effective dates by subsequent public notice.Continue Reading The FCC Expands Scope of Data Breach Notification Rules

On 9 October 2023, the European Parliament’s Internal Market and Consumer Protection Committee (IMCO) and Committee on Legal Affairs (JURI) agreed revised wording to amend the European Commission’s (the “EC”) proposed new Product Liability Directive (the “Directive”). The vote was passed with 33 votes in favour to 2 against. If adopted, the Directive will replace the existing (almost 40-year old) Directive 85/374/EEC on Liability for Defective Products, which imposes a form of strict liability on product manufacturers for harm caused by their defective products.Continue Reading EU Legislative Update on the New Product Liability Directive