Swarovski AG, a 120-year-old jewelry company based in Austria, is under investigation for possibly recording calls without consent in violation of California law. State law prohibits individuals as well as business entities from recording telephone communications without the consent of all parties involved, whether incoming or outgoing.

Any person who has reason to believe their telephone conversations were recorded without their knowledge or consent may have cause of action to file a complaint.

California Privacy Laws

The Golden State has long taken privacy rights seriously. Since California entered the Union in 1849, a citizen’s right to privacy has been considered so important that it has been enshrined in the state constitution. Over the past 170 years, these laws have been amended and revised as new communication technologies have been developed.

With very few exceptions, California privacy statutes prohibit the covert recording of telephonic communications. Otherwise, anyone who is involved must be made aware that their conversation is being recorded and given the opportunity to refuse consent (by ending the call). Otherwise, the party recording the call may be liable for violating the state’s Invasion of Privacy Act. This includes entities and/or persons based outside the state or country who are in communication with anyone residing in California.

Exceptions to the Law and Implied Consent

A telephone conversation may be secretly recorded by law enforcement in connection with a criminal investigation. Legally however, recording calls without consent under such circumstances requires a court order signed by a judge.

Outside of an authorized criminal investigation, compliance with the California Invasion of Privacy Act requires that whomever plans to make a recording of a telephone conversation inform the other party. This can be as simple as an announcement at the outset that the call “may be recorded for training purposes” or in order to “improve customer service.” At that point, the other party may withhold consent by simply terminating the call.

Remaining on the line following such an announcement assumes that consent has been granted.

Companies Under Investigation for Recording Calls Without Consent

Swarovski AG is only one business entity that is currently under investigation for recording calls without consent of customers. Other alleged violators include:

• Dermalogica
• Drs. Foster & Smith
• Mears Transportation Group
• Romano’s Macaroni Grill
• Southwest Rapid Rewards (800-445-5764 only)
• United Airlines Pet Safe (800-575-3335 only)
• Cannondale Bicycle Corporation
• Czech Airlines

Any of these businesses who are found to have violated California privacy laws can be liable for damages of $5,000 per violation, or three times the actual damages. These penalties apply whether or not the violator is domiciled within California. In some cases, such settlements have run into the millions of dollars.

Currently, law firms are investigating Swarovski and other businesses on behalf of potential plaintiffs in anticipation of legal action that may be taken in response to reports that they have been recording calls without consent.