[HN Gopher] California's Corporate Cover-Up Act Is a Privacy Nig...
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       California's Corporate Cover-Up Act Is a Privacy Nightmare
        
       Author : hn_acker
       Score  : 54 points
       Date   : 2025-06-25 18:45 UTC (4 hours ago)
        
 (HTM) web link (www.eff.org)
 (TXT) w3m dump (www.eff.org)
        
       | nostrademons wrote:
       | I really wish they went into more detail of the legal issues and
       | existing law around this area. I had to go into the linked
       | statutes to even find out what the this bill _is_ , and
       | "California Corporate Cover-Up Act" is their term for it, not on
       | the actual bill.
       | 
       | From my (IANAL) read, it looks like somebody realized that CIPA
       | could be construed to criminalize recording IP addresses as
       | wiretapping, and yet basically every website and online service
       | does it to prevent DDoS attacks, abuse, and fulfill legal
       | obligations. And so this bill specifically excludes "identifying
       | the originating number or other dialing, routing, addressing, or
       | signaling information reasonably likely to identify the source of
       | a wire or electronic communication but not the contents of a
       | communication" when done as part of a commercial purpose from
       | being part of the definition of wiretapping.
       | 
       | I know that the EFF's job is to maximize privacy online, and I'd
       | even agree with (and have donated to) that mission. But unless
       | there's some subtle legal argument here, I don't get the uproar.
       | Companies have been collecting IP addresses for the last 30
       | years, you are not realistically going to stop that practice
       | without breaking the Internet, and so I don't see much of a
       | change from status quo other than not having a law that can be
       | used to fine tech company execs billions of dollars for
       | wiretapping.
        
         | meristohm wrote:
         | Perhaps part of the point is to stir action towards not
         | accepting the status quo, harmful as it is? We can do better.
        
           | mindslight wrote:
           | Our federal government is currently being torn down from the
           | goal of " _[stirring] action towards not accepting the status
           | quo_. " Details matter, it turns out.
        
         | sundarurfriend wrote:
         | > "California Corporate Cover-Up Act" is their term for it, not
         | on the actual bill.
         | 
         | As they say in the second sentence of the very first paragraph:
         | 
         | >> S.B. 690, what we're calling the Corporate Cover-Up Act, is
         | 
         | The linked statute makes far broader exclusions that you imply
         | or would be necessary for what you mention. It just adds "A
         | commercial business purpose" with no provisos or clarification,
         | which invites insanely broad interpretations and effectively
         | nullifies the existing law, just as EFF is saying.
        
         | Aloisius wrote:
         | _> I really wish they went into more detail of the legal issues
         | and existing law around this area_
         | 
         | It's in the analyses:
         | 
         | https://leginfo.legislature.ca.gov/faces/billAnalysisClient....
        
         | nostrademons wrote:
         | (Replying to my own comment because I've been digging and would
         | rather search for truth than argue.) This article has more
         | details about why this an issue now:
         | 
         | https://getterms.io/blog/california-invasion-of-privacy-act-...
         | 
         | Basically, CIPA is a 1994 law, initially aimed at landline
         | telephones, that forbids wiretapping or recording conversations
         | without the consent of both parties. Starting in 2024, there
         | have been a number of lawsuits that argue that things like
         | cookies and recorded chats should be considered wiretapping.
         | Several of these lawsuits have been dismissed, but some are
         | still pending, and the legislature / corporate lobbyists are
         | trying to get ahead of the problem by explicitly exempting
         | themselves from CIPA.
         | 
         | Personally I think a better solution would be to explicitly
         | enumerate the types of tracking that are considered violations
         | of CIPA, rather than adding a blanket exception for commercial
         | purposes. But I also think that wave of CIPA lawsuits in the
         | last year isn't a great trend either: one (recently dismissed)
         | case actually did try to argue that collecting IP addresses was
         | a "pen register", which would've criminalized running a hobby
         | website.
         | 
         | https://www.mayerbrown.com/en/insights/publications/2025/02/...
        
       | delichon wrote:
       | SS 637.2(d) provides that there is no private right of action to
       | sue for "the processing of personal information for a commercial
       | business purpose." Anything that would otherwise be actionable
       | under the California Invasion of Privacy Act (CIPA) would now be
       | exempt if it includes a commercial business purpose,
       | retroactively.
       | 
       | This is basically a sneaky repeal of the parts of CIPA that chafe
       | big data.
        
         | Aloisius wrote:
         | Considering the companies that have been threatened or sued,
         | it's far more than "big data."
        
       | sundarurfriend wrote:
       | The linked bill [1] is pretty short and readable, so I'd
       | encourage people to actually check it out (since the EFF article
       | doesn't even quote from it). If you want a diff view, the
       | "Today's Law As Amended" tab [2] shows that.
       | 
       | [1]
       | https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml...
       | 
       | [2]
       | https://leginfo.legislature.ca.gov/faces/billCompareClient.x...
        
       | esbranson wrote:
       | Who says Democrats can't get anything done? No one even mentioned
       | You Know Who, but that's probably because state media refuses to
       | talk about this at all.
       | 
       | > SUPPORT: (Verified 05/29/25)
       | 
       | > California News Publishers Association
       | 
       | > News Media Alliance
       | 
       | Ah, right.
        
       | phendrenad2 wrote:
       | Discussed previously:
       | https://news.ycombinator.com/item?id=44189442
       | 
       | The more I read about this, the more it seems like the EFF is
       | straight-up being dishonest about the bill (which I think it
       | becoming a pattern for the EFF, I'm afraid).
       | 
       | They've branded it the "Corporate Cover-Up Act" (with "Act" in
       | all caps to possibly fool the general public into thinking it's
       | the actual name of the law?!) and saying it will give "Big Tech
       | and data brokers a green light to spy on us without consent for
       | just about any reason".
       | 
       | But they neglect to inform you that the bill explicitly limits
       | the reasons. Those exceptions are:
       | 
       | - Auditing related to counting ad impressions to unique visitors,
       | verifying positioning and quality of ad impressions, and auditing
       | compliance with this specification and other standards.
       | 
       | - Helping to ensure security and integrity to the extent the use
       | of the consumer's personal information is reasonably necessary
       | and proportionate for these purposes.
       | 
       | - Debugging to identify and repair errors that impair existing
       | intended functionality.
       | 
       | - Short-term, transient use, including, but not limited to,
       | nonpersonalized advertising shown as part of a consumer's current
       | interaction with the business, provided that the consumer's
       | personal information is not disclosed to another third party and
       | is not used to build a profile about the consumer or otherwise
       | alter the consumer's experience outside the current interaction
       | with the business.
       | 
       | - Performing services on behalf of the business, including
       | maintaining or servicing accounts, providing customer service,
       | processing or fulfilling orders and transactions, verifying
       | customer information, processing payments, providing financing,
       | providing analytic services, providing storage, or providing
       | similar services on behalf of the business.
       | 
       | - Providing advertising and marketing services, except for cross-
       | context behavioral advertising, to the consumer provided that,
       | for the purpose of advertising and marketing, a service provider
       | or contractor shall not combine the personal information of
       | opted-out consumers that the service provider or contractor
       | receives from, or on behalf of, the business with personal
       | information that the service provider or contractor receives
       | from, or on behalf of, another person or persons or collects from
       | its own interaction with consumers.
       | 
       | - Undertaking internal research for technological development and
       | demonstration.
       | 
       | - Undertaking activities to verify or maintain the quality or
       | safety of a service or device that is owned, manufactured,
       | manufactured for, or controlled by the business, and to improve,
       | upgrade, or enhance the service or device that is owned,
       | manufactured, manufactured for, or controlled by the business.
       | 
       | You may think that these exceptions are overly broad, and I may
       | even agree with you. But calling this "any reason" is still
       | deeply disingenuous.
       | 
       | (Disclaimer: I'm not a lawyer. If I was, as I assume many
       | contributors to the EFF are, I would be tempted to be against
       | this bill, because being able to sue businesses for virtually any
       | data collection, even legitimate, on the basis of a 1967 law that
       | was meant to ban phone wiretapping and thus has insanely steep
       | fines? No way the paragons of virtue we know many lawyers to be
       | would salivate at the thought of that!)
        
         | strbean wrote:
         | > (b) This section does not apply to any of the following:
         | 
         | > (1) A public utility, or telephone company, engaged in the
         | business of providing communications services and facilities,
         | or to the officers, employees or agents thereof, where the acts
         | otherwise prohibited herein are for the purpose of
         | construction, maintenance, conduct, or operation of the
         | services and facilities of the public utility or telephone
         | company.
         | 
         | > (2) The use of any instrument, equipment, facility, or
         | service furnished and used pursuant to the tariffs of a public
         | utility.
         | 
         | > (3) A telephonic communication system used for communication
         | exclusively within a state, county, city and county, or city
         | correctional facility.
         | 
         | > *(4) A commercial business purpose.*
         | 
         | Emphasis mine.
         | 
         | That seems wildly less limited than you imply.
        
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       (page generated 2025-06-25 23:01 UTC)