By Kim Gale  |  July 24, 2017

Category: Consumer News

California privacy laws might have been violated by 99 Cents Only discount stores if the company recorded telephone calls without customers’ consent.

California consumers are protected by a two-party law, which means both parties need to give permission before a phone call can legally be recorded.

In some states, only one party of a phone call needs to give permission for a phone call to be recorded. But under California privacy laws, all parties must give permission for a call to be recorded or it is a violation of the California Invasion of Privacy Act (CIPA).

Retailers like 99 Cents Only stores often record customer service phone conversations. Supervisors or quality management staff review the calls in order to coach their customer service staff. Call center employees are often rated on how well they manage a call and whether a resolution is reached.

If you call any business that plays a recording indicating calls may be monitored and you choose to continue with the phone conversation, California’s privacy laws consider your action to be implied consent.

Consumers do not have to vocalize the words “I authorize you to record this call.” Even if a mechanical voice alerts you that a call might be recorded and you choose to continue the conversation, you are giving implied consent to the recording.

If you are a customer who placed a call to the store and your call was recorded, you could be eligible for compensation through legal action as long as you are covered by California privacy laws.

California Privacy Laws Have Teeth

A fine up to $2,500 is possible for each violation of the California privacy laws. The offending party can also be found responsible for civil liability up to $3,000 or three times the amount of actual damages that are incurred as a result of the infraction. Statutory damages can reach $5,000 per violation.

If found liable for unauthorized recording, 99 Cents Only could be fined for recording consumers without consent.

The California Supreme Court has ruled that recording a conversation is not a crime by itself, but recording someone without consent can be a criminal offense.

Californians are protected by CIPA even if the offending recorded calls were made with out-of-state businesses. While some out-of-state business owners have attempted to claim that CIPA violates the Commerce Clause of the U.S. Constitution, that argument has been unsuccessful because CIPA regulates only calls into California.

The first 99 Cents Only store opened in 1982. The company has more than 350 retail stores in California, Texas, Arizona, and Nevada. The company went public in 1996.

If you’re in California and have called or received a call from 99 Cents Only or any other company that has recorded your conversation without your permission, you may benefit from speaking to a lawyer regarding your options for legal action. The company could be charged with violating California privacy laws.

Join a FREE California Call Recording Class Action Lawsuit Investigation

If you live in California and you did not receive a warning when calling a toll-free number, your call may have been recorded in violation of California law, and you may be entitled to compensation. See if you qualify to file a California call recording class action lawsuit.

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