Lofty-backed law limits CIPA claims targeting brokerages
The proptech firm says it helped pass a state law that is intended to end “demand letter campaigns” alleging California Invasion of Privacy Act violations.
Proptech firm Lofty is taking credit for helping change a state law that the company said has been used to target real estate brokerages.
CIPA revision signed into law: California Gov. Gavin Newsom signed Senate Bill 690 (SB 690) into law on Sept. 30. SB 690 amends the California Invasion of Privacy Act (CIPA), eliminating individuals' ability to bring private "pen register" claims. The state's attorney general is now the only one authorized to initiate claims "if the action is alleged to arise from conduct occurring on an internet website, online application, or mobile application."
The law takes effect on Jan. 1, 2027. It will apply retroactively to any pending claim lodged within the two years preceding that date.
Eliminating a 'threat' to California businesses: The law "effectively ends a wave of demand letter campaigns that had threatened California businesses with hundreds of millions of dollars in potential statutory damages for standard website analytics practices," Lofty, formerly known as Chime Technologies, said in a news release.
Since the firm's founding, "we have been committed to serving the real estate industry [through] our agentic AI platform — one that depends on the same analytics and lead-tracking integrations that power virtually every modern website," Lofty CEO Joe Chen said in a statement.
"We are grateful to the California legislature for acting swiftly and to Governor Newsom for recognizing that CIPA's pen register provisions were being exploited to undermine, rather than protect, businesses and consumers across the country."
Lofty dismisses related lawsuit: In a move related to CIPA litigation, the company rolled out the Lofty CIPA Defense Program in July to help its customers respond to and defend themselves from CIPA demand letters. That same week, Lofty filed suit against Vivek Shah, a CIPA tester representing himself who has filed at least 19 related lawsuits. Lofty asked the federal court to declare that its operation of its platform does not violate CIPA.
Lofty voluntarily dismissed that complaint after Newsom signed the bill.
"Lofty did not, and would not settle its lawsuit against Vivek Shah, a pro se litigant known for filing numerous California Invasion of Privacy Act (CIPA) 'wiretapping' claims over website tracking," a spokesperson told Real Estate News in a statement.
"Lofty believes that its lawsuit against Mr. Shah contributed to the California legislature and Governor Newsom passing SB 690, which removed the private right of action for pen register claims under CIPA," the spokesperson added. "Because SB 690 rendered Lofty's litigation against Mr. Shah moot, Lofty voluntarily dismissed its lawsuit."