New California Law Reduces Privacy Litigation Risk for HVAC Businesses

California has enacted significant legislation designed to protect HVAC contractors and other small businesses from costly privacy-related lawsuits. Governor Gavin Newsom signed Senate Bill 690 into law on September 30, marking a major shift in how companies can operate their websites without fear of widespread litigation under the California Invasion of Privacy Act (CIPA).

Before this new law, HVAC contractors and countless other businesses faced legal exposure from claims related to website tracking technologies. The California Invasion of Privacy Act, originally passed in 1967 to criminalize wiretapping, has been reinterpreted over decades to include digital privacy concerns. This expansion created a legal minefield for any business operating a website, regardless of where that business was located.

The Problem: Costly Lawsuits Over Website Tracking

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Small HVAC contractors found themselves particularly vulnerable to what are known as pen-register and trap-and-trace claims. These claims target the common tracking tools that nearly every website uses today, including chat functions, Google Analytics, Meta Pixel, HubSpot, and similar marketing software. One California HVAC company was sued over a $5,000 fine per website visit, not per unique visitor, but for every single visit to their site. For many contractors unfamiliar with information technology, understanding these technical requirements felt overwhelming and impossible to navigate.

The problem extended beyond California. Because CIPA protection follows the California resident rather than the business location, any company with a website could be targeted if a California resident visited their site and tracking technology captured that activity. More than 800 claims were filed in 2025 alone, with pen-register and trap-and-trace claims accounting for roughly two-thirds of all active California privacy litigation as of mid-2026. Some individuals began sending pre-litigation demand packets to businesses across the country, designed to look like formal lawsuits ready for filing.

What SB 690 Changes for HVAC Shoppers and Contractors

Senate Bill 690 eliminates the private right of action for website and app-based pen-register and trap-and-trace claims under CIPA. This means individuals can no longer sue businesses directly over these specific violations. Instead, only California’s Attorney General can bring enforcement actions related to these claims. The law takes effect on January 1, 2027, and applies retroactively to pending claims filed within two years before that date.

For homeowners seeking HVAC services, this development means contractors can focus more resources on quality service rather than legal defense costs. HVAC growth strategies and business stability directly affect service quality and reliability for customers, so reducing unnecessary litigation expenses allows companies to invest in better training, equipment, and customer support.

Important Limitations to Understand

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However, this law does not eliminate all privacy exposure. SB 690 specifically addresses pen-register and trap-and-trace provisions but does not protect against claims involving wiretapping, communication interception, or other sections of CIPA. Legal experts predict that demand letters will now shift focus to other CIPA sections where consent and party-exception defenses remain available.

Furthermore, as HVAC technology evolves with new digital tools, contractors must remain vigilant about their privacy practices. Industry attorneys recommend that contractors conduct a basic website privacy audit by identifying all third-party tracking tools, ensuring their privacy policy accurately discloses them, reviewing consent practices, and periodically confirming what vendors have installed tracking code on their website.

What This Means Going Forward

For HVAC contractors nationwide, Senate Bill 690 significantly reduces one major source of litigation, but it does not eliminate website privacy exposure entirely. Contractors operating in California or serving California residents should continue to maintain transparent privacy practices and keep their website disclosures current.

Homeowners benefit when their HVAC contractors can operate without overwhelming legal threats hanging over their heads. A growing and stable HVAC industry means more trained technicians available to service homes and better business environments for quality contractors.

If you are shopping for HVAC services, this legislative change reflects an evolving regulatory landscape that protects both consumers and legitimate businesses. Understanding these shifts helps you appreciate the challenges contractors face and the importance of supporting reputable, transparent companies in your area.