CIPA Compliance & Trap and Trace: Respond the Right Way

What You Need to Know Aboutthe Trap & Trace Legal Threat and CIPA Compliance

NOTE: This document provides general guidance and is not a substitute for legal counsel. If you have questions about CIPA compliance or other data privacy laws, consult with your attorney.

Many businesses have received demand letters alleging violations of the California Invasion of Privacy Act (CIPA) due to the use of standard website tracking technologies such as Meta Pixel, Google Analytics, or TikTok Pixel. These letters argue that the use of such technologies constitutes illegal interception under CIPA § 631(a). As a result, companies are being pressured into quick settlements, even though CIPA compliance—and the law’s applicability to digital tracking—remains legally unsettled.

However, at PieEye we’ve reviewed dozens of these letters and continue to help our clients evaluate their exposure and respond appropriately. Here’s what you need to know about CIPA compliance, Trap & Trace demand letters, and how to protect your business.

What Are “Trap and Trace” Letters?

Trap and Trace letters are issued by law firms like Swigart Law Group, Tauler Smith LLP, and Pacific Trial Attorneys. These letters allege that your website unlawfully “intercepts” communications using pixels or analytics tools, violating CIPA compliance standards. They typically demand a payment between $3,000 and $7,500 to resolve the alleged issue.

Therefore, these claims often rely on legal theories that have not been fully tested in court, and experts argue that these tactics amount to legal intimidation rather than legitimate enforcement of privacy laws.

Understanding the Legal Landscape: CIPA vs. CPRA

Notably, many of these claims conflate or confuse California’s overlapping privacy laws:

1. California Privacy Rights Act (CPRA)

The CPRA is California’s primary privacy law governing the collection and processing of personal data. PieEye’s platform is fully aligned with CPRA requirements. Our CMP includes features for opt-out consent, geo-targeting, and configurable banners that help ensure CPRA and CIPA compliance. (California Privacy Rights Act (CPRA) – Official FAQ)

2. California Invasion of Privacy Act (CIPA)

In contrast, CIPA is a much older law, written to address wiretapping and telephone surveillance. Its application to website pixels and analytics is legally unsettled and often challenged in court. In recent decisions such as Licea v. Hickory Farms (Licea v. Hickory Farms Decision) and Lakes v. Ubisoft (Lakes v. Ubisoft, Inc. Decision), courts have dismissed CIPA claims, ruling that consent mechanisms and non-confidential communications undermine the plaintiff’s case.

For businesses focused on CIPA compliance, it’s important to understand that the law is evolving—and that panic is not a strategy.

What’s Really at Stake?

These letters present businesses with a dilemma:

No response is perfect—but ignoring CIPA compliance isn’t an option either. PieEye helps you navigate this balance.

PieEye’s Recommendations for CIPA Compliance

At PieEye, we focus on practical, proactive compliance strategies. Here’s how we help you address CIPA compliance without undermining your marketing operations:

✅ Assess Your Risk Exposure

For example, If tracking technologies load before consent is given, particularly for users in California, you may be vulnerable under CIPA. PieEye can review your current CMP implementation and provide options for adjustment.

✅ Geo-Based Script Suppression

For optimal CIPA compliance, we recommend suppressing scripts in California until the user consents. Our tools allow precise geo-fencing so you can maintain marketing data elsewhere while reducing legal exposure in high-risk jurisdictions.

✅ Legal Response Support

PieEye can help your legal team prepare a response that clarifies:

• Your business complies with CPRA

• CIPA’s application to pixels is legally ambiguous

• No confidential communications were intercepted

• You are committed to CIPA compliance, but the legal claim lacks merit

For example, some of our clients have responded formally and successfully to such a letter using many of these arguments.

Legislative Reform Is Coming

A growing number of privacy experts and lawmakers agree that CIPA is being misapplied to modern website tracking technologies.

In response, California Senate Bill 690 seeks to clarify that business use of pixels and similar tools, when conducted with proper consent under CPRA, should not be treated as criminal wiretapping. As discussed in this privacy chat with Jules Polonetsky and Sher Prather Rockwell, the bill would help reduce abusive demand letters and realign enforcement with the spirit of California’s privacy laws.

What PieEye Offers

• Geo-targeted script suppression

• Advanced cookie consent banners

• Support for CIPA compliance and CPRA alignment

• Expert legal advisory resources to help respond to demand letters

We are also closely monitoring CIPA-related rulings to ensure our clients are always ahead of legal developments.

Final Word on CIPA Compliance

As a reult of all this, Trap and Trace letters are part of a growing trend of speculative privacy litigation. By proactively addressing CIPA compliance now—with smart tools and legal insights—you can reduce your exposure without crippling your marketing.

If you’ve received one of these letters or want a privacy risk assessment, contact us at sales@pii.ai.

With PieEye, privacy compliance becomes a strategic advantage—not a legal liability.