In today’s digital economy, protecting consumer data is no longer just a best practice, it is a legal requirement. With recent updates to California’s privacy laws, including the California Consumer Privacy Act (CCPA) and its expanded version, the California Privacy Rights Act (CPRA), businesses across all industries face increased responsibility and legal risk when it comes to handling personal information. These changes have significant implications for commercial litigation and data breach liability, especially as new regulations and court decisions continue to redefine what counts as a violation.
In this blog, we will break down how the 2025 updates to the CCPA and CPRA are reshaping the legal landscape, what types of business practices now pose the greatest risks, and what companies can do to protect themselves from costly lawsuits.
What Changes to CPRA Are Impacting Businesses and Legal Risk?
California’s updated privacy laws are giving individuals more power over how their personal information is collected, stored, and shared. These updates, primarily through the California Privacy Rights Act (CPRA), which builds on the earlier California Consumer Privacy Act (CCPA), introduce new consumer rights and higher standards for how businesses handle data. For example, consumers now have the right to correct errors in their data, limit how companies use sensitive information like health or financial details and opt out of both selling and sharing their data with third parties.
From a legal standpoint, these changes mean companies face more ways they can be held responsible for mismanaging data. One of the biggest shifts is that consumers can now sue businesses if certain types of personal information, such as login credentials, are exposed in a data breach. Unlike in the past, businesses cannot simply “fix” the problem and avoid liability. Even if there is no obvious financial harm to the consumer, companies may still be required to pay statutory damages of up to $750 per affected individual. For large companies or large-scale breaches, this can quickly add up to millions of dollars in legal exposure. This makes it more important than ever for organizations to take privacy laws seriously and invest in preventative compliance.
What Counts as a Data Breach Under Today’s Privacy Laws?
In today’s digital environment, a data breach goes far beyond traditional hacking incidents. Courts are beginning to recognize that personal information can be misused or mishandled through more subtle, everyday business practices. One example involves the use of digital tracking tools like Meta Pixel or Google Analytics, which are often embedded on websites to monitor user behavior. While helpful for marketing, these tools can unintentionally transmit sensitive personal information such as names, email addresses, or even health-related data, to third parties without the user’s knowledge. In recent lawsuits, courts have allowed claims to proceed based on the argument that such passive data sharing constitutes a violation of consumer privacy laws.
Common Consumer Protection Claims Arising from Privacy Violations
As a result, legal risk now extends beyond securing IT systems to how companies configure and manage commonly used digital tools. A business may face liability even if it never intended to misuse data, particularly when its privacy policies make broad promises about data protection that do not match actual practices. For instance, a company that states it “always protects your personal information” but fails to follow industry-standard security procedures or shares user data without proper consent could be exposed to claims of false advertising, consumer deception, or violations of broader consumer protection laws like California’s Unfair Competition Law or the Consumer Legal Remedies Act. These types of legal claims may include:
- Making misleading statements in privacy policies or terms of service
- Failing to obtain clear and informed user consent for data sharing
- Using third-party tracking tools without proper disclosures
- Not updating or enforcing internal policies that match public claims
How Does the Public Records Act Play into Data Privacy and Litigation?
While consumer privacy laws like the CPRA mostly apply to businesses, California’s Public Records Act (also abbreviated as CPRA) plays a separate but important role in government transparency. This law requires public agencies, such as state departments, school districts, and police departments, to make their records available upon request unless a legal exemption applies. These public records requests are a common tool used by journalists, watchdog groups, and even attorneys involved in lawsuits to access government communications, contracts, and internal policies.
How Will These Updates Affect Commercial Litigation and Data Breach Liability?
On July 24th, 2025, updates were made to the CCPA and CPRA that will significantly raise the stakes for businesses involved in commercial litigation, especially when it comes to data breaches or alleged privacy violations. The CPRA, which originally took effect on January 1, 2023, expands the scope of what qualifies as a breach by including not just stolen data, but also the unauthorized sharing of personal information through common tracking technologies or third-party platforms. This broadens the definition of harm and opens the door for more plaintiffs to bring claims, even in the absence of direct financial loss. From a legal strategy standpoint, this means plaintiffs’ attorneys now have stronger grounds to pursue statutory damages under privacy laws as part of broader commercial disputes. For businesses already navigating contract breaches, trade secret claims, or partner disputes, these privacy-related allegations can add a costly and complex layer to litigation.
In addition, CPRA’s stricter enforcement mechanisms and operational requirements, such as risk assessments, cybersecurity audits, and data handling disclosures, create new standards of care that can influence liability in court. If a business fails to document its compliance with these requirements, opposing counsel may argue that the company acted negligently or failed to meet industry expectations. This can be particularly damaging in commercial litigation, where discovery of internal communications, vendor agreements, and data management policies could reveal lapses in compliance.
Stay Ahead of the Curve with McCune Law Group
California’s evolving privacy laws are reshaping how businesses of all sizes think about personal data. With stronger enforcement, new consumer rights, and higher standards for data protection, the consequences of failing to comply are more serious than ever. Legal exposure now extends beyond major hacks or security failures; it includes things like poorly configured marketing tools, vague privacy policies, and missed compliance deadlines.
At McCune Law Group, we understand how challenging it can be to keep up with these changes while running a business. That is why we offer legal guidance that helps companies navigate the complex landscape of data privacy, minimize the risk of litigation, and stay compliant with evolving laws. If you are unsure where your business stands or want help strengthening your privacy program, our experienced attorneys are here to help. Reach out today to protect your company’s future and your customers’ trust.
Call us today or fill out our contact form to schedule a free evaluation. We’re here to help you move forward, no matter how complicated your case may be.