Attorney General Ken Paxton warned Texas businesses and nonprofit organizations on Sept. 17 about a surge in demand letters alleging website privacy violations under California law.
The letters claim violations of the California Invasion of Privacy Act based on the use of common website tools such as cookies, pixels, analytics software and search bars, according to a consumer alert from the attorney general’s office. Senders may argue those tools amount to unlawful “wiretapping” under California law and demand immediate payment to head off litigation, the alert said, sometimes enclosing screenshots of the recipient’s website and a draft complaint.
Paxton urged recipients not to act alone. “My office will do everything we can to protect Texans from fraudulent demands and other scams,” he said in the alert. “We have been made aware of suspicious letters demanding payment from Texas businesses for alleged website privacy violations under California law. I urge any organization that receives such a demand to exercise caution, consult with legal counsel, and report suspected fraud or abuse to my office.”
Such letters may exaggerate or misrepresent a potential violation, the office said. The alert pointed to one serial plaintiff, Vivek Shah, who it said is known to have sent demand letters alleging violations of the act and has been declared a vexatious litigant, barred from filing new actions asserting that law or related digital privacy claims in the U.S. District Court for the Central District of California without first obtaining the court’s permission.
The office recommended that recipients consult an attorney experienced in privacy and website-tracking litigation before responding, and it pointed to State Bar of Texas resources for finding counsel. It also advised businesses to review their websites’ use of pixels, cookies, analytics tools and similar technologies with a lawyer’s help, and to monitor evolving state and federal privacy laws and court decisions on website-tracking technology.
Businesses and organizations that believe a demand letter is fraudulent, abusive or deceptive can report it to the office’s Consumer Protection Division by calling 1-800-621-0508 or filing an online complaint. The office advised recipients not to respond directly to a sender or send payment without first consulting qualified legal counsel where possible.