652: The Lawsuit Hitting Shopify Sellers Right Now (And How to Avoid It) With Steven Weigler

Podcast: Download (Duration: 37:41 — 50.5MB)

Shopify privacy lawsuits are frivolous claims under state wiretapping and data-collection laws (mainly California’s CIPA, Florida’s FSCA, and Texas Senate Bill 140) that target e-commerce sellers for using cookies, the Meta pixel, or a live-chat widget without a properly disclosed opt-in. Plaintiff’s attorneys are filing them at scale (50,000-100,000 CIPA e-commerce claims since 2022) and demanding $6,000 to $20,000 to settle each one.

In this episode I sat down with Steven Weigler, my go-to trademark and IP attorney (founder of EmergeCounsel, recently acquired by Buchalter), to break down exactly why these lawsuits are landing on Shopify sellers doing everything right, and the specific best practices that get you out of the plaintiff attorneys’ software targeting.

Below is the full playbook: which state laws are being weaponized, why Shopify stores are the easy target, the three cookie-consent tiers ranked from best to worst, the exact fix for live-chat lawsuits in Florida, and what to do the day a demand letter shows up.

Key takeaways

• The lawsuits are frivolous but they cost real money. Plaintiff attorneys file for around $250 and demand $6,000 to $20,000 to settle. Even winning eats legal fees.
• Three state laws are doing the damage. California CIPA (wiretapping, written in the 1970s), Florida FSCA (chat-room privacy), and Texas Senate Bill 140 (SMS marketing without opt-in).
• Shopify stores are the target because you control the site. Cookies, the Meta pixel, and third-party live-chat scripts run through your code and expose you to the statutes.
• The single best fix is a real cookie-consent pop-up. A pop-up the visitor has to accept “all cookies” on to continue beats every other option.
• Live-chat lawsuits in Florida have a one-line fix. Post a disclosure above the chat naming who receives the data and stating the visitor consents by using it.
• If a demand letter arrives, hire counsel that day. Do not call the plaintiff’s attorney yourself. Free 30-minute reviews are available from attorneys who track these cases.

What are the Shopify privacy lawsuits hitting e-commerce sellers?

Shopify privacy lawsuits are demand letters and complaints filed under state wiretapping and data-collection statutes that never contemplated e-commerce, weaponized by plaintiff attorneys who look for a technical opt-in gap on your site and file at scale.

The specific claim is almost always that your store collected identifying data (through cookies, the Meta pixel, a Google Analytics script, or a live-chat widget) without disclosing it in the exact way the plaintiff’s attorney can argue the state statute requires.

Steven put the frivolousness rate at 99.9%. The problem is not that the plaintiff has a real case. The problem is that fighting the claim costs more than the settlement they are demanding, so most sellers just pay.

Which state laws are behind the wave of Shopify seller lawsuits?

Three state laws are behind almost every one of these Shopify seller lawsuits: California’s CIPA, Florida’s FSCA, and Texas Senate Bill 140. None of them were written for e-commerce.

• California CIPA (California Invasion of Privacy Act). A 1970s wiretapping statute originally aimed at recording phone calls without consent. Plaintiff attorneys argue that cookies and the Meta pixel are a form of interception. Between 50,000 and 100,000 CIPA e-commerce claims have been filed since 2022, mostly in Southern California and San Diego, where the courts have not definitively ruled on whether CIPA applies to online transactions.
• Florida FSCA (Florida Security of Communications Act). Originally healthcare-focused. Florida is a two-party consent state, so the argument is that a live-chat widget routes the conversation through a third-party vendor before it reaches the seller and the visitor was never told. Cases jumped from 5 in 2021 to 28 in 2024 to hundreds or thousands in 2025.
• Texas Senate Bill 140. Focused on SMS marketing. Sending a promotional text without a prior opt-in exposes the seller to Texas-specific claims.

Roughly 20 states have laws in the same family, but the vast majority of active litigation is in California, Florida, Texas, and New York. Colorado and Massachusetts have similar statutes, and courts there have generally thrown these cases out.

Why are Shopify sellers the main target for privacy lawsuits?

Shopify sellers are the main target because on Shopify you control your own site, which means you (not the platform) are responsible for every cookie, pixel, and third-party script that fires. Amazon and Walmart marketplace sellers do not have the same exposure because the platform runs the data collection.

Plaintiff attorneys almost certainly run software that scans Shopify stores for missing or weak cookie consent, tracking pixels without a matching privacy disclosure, or live-chat widgets without an above-the-fold consent notice. When the scanner flags a store, a $250 filing goes out.

The plaintiffs themselves are serial filers. Steven mentioned one plaintiff in Florida (“Monica”) who filed 15 lawsuits in a single day, 12 of them Shopify-privacy claims. The economics work because 20 filings times $250 to file, at $6,000 to $20,000 per settlement, is a very high-margin business for the attorney.

What does a Shopify privacy lawsuit actually cost?

A Shopify privacy lawsuit costs a settlement of $6,000 to $20,000 if you pay it off, plus attorney fees to negotiate. If you fight and lose, you can be on the hook for the plaintiff’s attorney fees, which the Florida statute builds in, and those can run into six figures.

The catch is that the settlement is not the end. Steven confirmed that once you settle one, a different plaintiff can file the exact same claim next month. The only real protection is fixing the underlying compliance gap on your site so the scanner stops flagging you.

If you fight, you file a motion to dismiss, get hit with pre-written discovery (they use the same package on every defendant), and then wait for the court to rule. Some Southern California courts have started dismissing these because their dockets are overwhelmed. Northern California courts are more aggressive about tossing them.

The 3 cookie consent tiers, ranked from best to worst

There are three tiers of cookie-consent implementation for a Shopify store, ranked here from best (bulletproof against CIPA claims) to worst (still legally cover but tests the courts).

1. Tier 1 (best): a real cookie-consent pop-up with “accept all cookies” or manage-my-cookies options. The visitor cannot use the site until they interact with the modal. This is what every major Shopify store should be running, and Steven noted it is still rare even on large stores.
2. Tier 2: a disclaimer banner at the top of the front page. Text like “we may be collecting confidential information” with an “OK” the visitor has to click. The affirmative action is what makes it work.
3. Tier 3 (last resort): a sticky privacy policy with an opt-in checkbox. The privacy policy is written to trigger an “I have reviewed the privacy policy” opt-in somewhere prominent on the site. Weakest of the three because it depends on whether the court thinks the visitor could reasonably see it.

Burying the disclosure inside a linked privacy policy page with no opt-in interaction is what plaintiff attorneys are looking for. That is the pattern their scanning software flags, and it is what creates the “question of fact” that lets the case survive a motion to dismiss.

How to fix Florida chat-room lawsuits with a one-line disclosure

The fix for Florida FSCA chat-room lawsuits is a disclosure posted directly above the chat widget that names the third-party vendor receiving the conversation and states the visitor consents to that by using the chat.

Most Shopify live-chat implementations route the conversation through a third-party vendor (Gorgias, Tidio, Intercom, Zendesk, and others) before the seller sees it. Florida is a two-party consent state, so the plaintiff’s argument is that the visitor never consented to that third party seeing the data.

Steven’s client had a chat notice that said “we are recording this chat” but did not disclose the third party. That gap is what the current motion-to-dismiss hearing turns on. The fix is a slightly longer post above the chat naming the parties involved and making the consent explicit.

What to do if you get served with a Shopify privacy lawsuit

If you get served with a Shopify privacy lawsuit, hire counsel the same day, do not respond to the plaintiff’s attorney yourself, and get a proper motion-to-dismiss on the calendar for the latest possible hearing date.

Steven’s advice on the specifics:

• Never call the plaintiff’s attorney yourself. The number they quote you goes up if you call (“$12,000 for you, $6,000 for me”). They know you are an amateur and will price accordingly.
• Free 30-minute reviews are available. Steven and firms like his do a no-cost review of the demand letter so you know what you are dealing with before you commit to representation.
• Set the latest possible hearing date. Steven’s active Florida case is scheduled for the latest date he could get so he can watch how the same plaintiff’s other 13 cases resolve first.
• Do not try to represent yourself. These come with pre-written discovery packages. Missing a deadline turns a nuisance suit into a default judgment.

The worry rating Steven put on this: seven to eight out of ten. For context, he rated the wave of ADA website lawsuits a couple of years ago at a two. This one is harder because the underlying law is genuinely ambiguous and legislative fixes have stalled (California’s fix died in the last session).

How to protect your Shopify store from privacy lawsuits (proactive checklist)

The proactive checklist to protect your Shopify store from privacy lawsuits is short: install a real cookie-consent pop-up, add a chat-widget disclosure, tighten your privacy policy language, and confirm you are not sending unsolicited SMS.

• Install a cookie-consent modal with an accept-all-or-manage option. Not a passive banner. The visitor must interact with it.
• Post a chat-widget disclosure above the live chat. Name the third-party vendor receiving the data and state that continuing to use the chat is consent.
• Rewrite your privacy policy with the state-statute buzzwords. Reference CIPA, FSCA, and any other applicable state law explicitly so the scanner sees the language it is looking for.
• Do not text customers business offers without an opt-in. Texas Senate Bill 140 requires prior opt-in for SMS marketing. A checkbox at checkout is the minimum.
• Get an attorney review before you have a problem. The pre-lawsuit review is fast (Steven said five minutes for the audience). The post-lawsuit fix costs thousands.

The “sellable business” framing Steven kept coming back to: if you plan to sell the store in the next few years, privacy compliance shows up in due diligence. A term sheet at $3 million becomes an offer at $2 million if the buyer’s counsel finds an unresolved privacy issue.

Frequently asked questions

What is CIPA and why does it affect Shopify sellers?

CIPA is the California Invasion of Privacy Act, a 1970s wiretapping statute plaintiff attorneys are using to sue e-commerce sellers over cookies and tracking pixels. Between 50,000 and 100,000 CIPA e-commerce claims have been filed since 2022, mostly in Southern California, and they typically demand $6,000 to $20,000 to settle.

How much does a typical Shopify privacy lawsuit settle for?

Most demand between $6,000 and $20,000 to settle. Filing the claim costs the plaintiff about $250, so the economics favor volume. If you fight and lose, the plaintiff’s attorney fees can push the total into six figures, which is why most sellers pay.

What is the best cookie consent for a Shopify store?

The best cookie consent is a modal pop-up the visitor has to accept (either “accept all cookies” or a manage-cookies option) before they can use the site. Passive banners and disclosures buried in the privacy policy are weaker and are what plaintiff attorneys’ scanning software flags.

Why is Florida suing e-commerce sellers over live chat?

Florida is a two-party consent state, and plaintiff attorneys argue that a live-chat widget routes the conversation through a third-party vendor without the visitor’s consent. Florida FSCA chat cases jumped from 5 in 2021 to 28 in 2024 to hundreds or thousands in 2025. A disclosure posted above the chat that names the third party fixes most of the exposure.

Can you get sued again after settling a Shopify privacy lawsuit?

Yes. Settling with one plaintiff does not stop a different plaintiff from filing the identical claim later. The only real protection is fixing the underlying compliance gap on your site (cookie modal, chat disclosure, privacy-policy language) so the plaintiff’s scanning software stops flagging you.

What should you do if you receive a Shopify privacy demand letter?

Hire counsel the same day, do not call the plaintiff’s attorney yourself, and set the latest possible motion-to-dismiss hearing date so you can watch how the same plaintiff’s other cases resolve first. Free initial reviews are available from attorneys who track these cases.

Does the Meta pixel expose Shopify sellers to CIPA lawsuits?

Yes. The Meta pixel is one of the most common triggers. Even if you are not actively running Meta ads, having the pixel installed and collecting visitor data without a matching cookie-consent modal is enough for a plaintiff attorney’s scanner to flag your store.