Cookies, Pixels, and Lawsuits: How a Simple Banner Can Protect Your Business
Not everybody loves a good cookie, and plaintiffs’ lawyers are proving it. In California, routine website cookies, pixels, and analytics tools are increasingly being cited as evidence of illegal “interception” under the California Invasion of Privacy Act (CIPA), particularly when users were never given a meaningful choice.
If your website uses analytics, advertising pixels, or chat tools, your business may already be exposed to this growing category of privacy lawsuits, often without any obvious warning signs.
California has seen a sharp rise in class action lawsuits under CIPA. Although the statute was written to address telephone wiretapping, plaintiffs now argue that common website tracking tools intercept communications by transmitting user activity, such as clicks, form entries, or IP addresses, to third parties without consent.
Courts are split on these claims, but many cases survive early dismissal. That alone can trigger substantial legal costs. Even standard marketing tools, including analytics platforms and ad pixels, have been named in CIPA complaints. As a result, businesses are increasingly focused on practical ways to reduce risk without disrupting website functionality.
One of the most effective steps is implementing a clear cookie banner that obtains consent before non-essential tracking begins. Consent is central to CIPA claims. Courts have dismissed cases where companies showed users received notice and affirmatively agreed to tracking. Websites that load cookies or pixels automatically, without a clear choice, remain frequent targets.
A compliant cookie banner helps demonstrate that:
Users were informed about tracking technologies
Users had a real option to accept or reject non-essential cookies
The website honored the user’s selection
Effective banners do not need to be complex. Under current U.S. law, offering “Accept All” and “Reject All” options is sufficient. The banner should:
Appear on first visit and remain visible until the user acts
Clearly disclose the use of cookies and third-party tools
Link to a privacy or cookie policy with additional detail
Implementation matters. Non-essential cookies should not load until consent is given, and businesses should maintain records of user choices and periodically review tracking tools.
As CIPA litigation continues to expand, a well-implemented cookie banner remains a low-effort step that can significantly reduce legal exposure while improving transparency for users.