Lofty, a proptech firm, has taken a significant step to protect its clients in the real estate sector from costly legal battles. On July 8, 2026, the company launched a free legal defense program for real estate professionals targeted by lawsuits under the California Invasion of Privacy Act (CIPA). This initiative is in response to numerous demand letters sent by serial litigants, alleging that standard website analytics tools, such as Google Analytics, violate CIPA.
What Happened
Lofty, serving over 91,000 real estate professionals, has been proactive in countering what it describes as "shakedown" lawsuits under CIPA. These lawsuits, often initiated by serial litigant Vivek Shah, claim that the use of third-party tracking codes on websites without explicit consent constitutes a breach of privacy laws. Shah has been active in this legal space, having filed at least 19 CIPA lawsuits and issuing a demand letter to Lofty in June. The demands in these letters can reach up to $50,000, with settlements typically ranging between $5,000 and $15,000.
In a decisive move, Lofty filed a lawsuit against Shah to challenge the legal basis of these claims, which they argue are unfounded since CIPA was originally intended to address telephone surveillance rather than website analytics. This legal defense program offers Lofty's clients a comprehensive suite of services, including a review of demand letters, formal legal responses, support for any formal complaints, and ongoing updates on the case status. Importantly, the program aims to dismiss these claims rather than settle them.
Lofty's CIPA Defense Program is available to active clients and those switching from rival platforms after receiving a demand letter. The firm, formerly Chime Technologies and a majority-owned subsidiary of Moatable, powers over 30,000 websites and provides an AI-driven operating system for real estate management.
What This Means for Your Business
For businesses in the architecture, engineering, construction, and manufacturing (AECM) sectors, this development underscores the importance of understanding and complying with privacy regulations. The legal landscape around data privacy is evolving, and firms must ensure their analytics tools do not inadvertently expose them to similar legal challenges.
Lofty's initiative offers a template for how companies can protect their clients and themselves from frivolous lawsuits. The case highlights the need for robust legal strategies and compliance measures to mitigate risks associated with data privacy claims. For AECM companies, particularly those managing multiple client websites, adopting similar defense mechanisms could prevent costly settlements and protect their operational integrity.
What US Operators Should Watch
Companies should closely monitor the outcomes of Lofty's legal challenge against Shah, as a favorable ruling could set a precedent for future privacy lawsuits related to website analytics tools. Additionally, firms should review their compliance with CIPA and other similar laws to ensure they have the necessary consent mechanisms in place when using third-party analytics.
It's crucial to stay informed about any changes in privacy regulations and be prepared for potential audits or legal challenges. Firms might also consider investing in legal consultations or insurance policies that cover such litigation risks, ensuring they are not caught off-guard by unexpected legal expenses.
Source: https://propmodo.com/proptech-firm-backs-brokers-against-california-privacy-shakedown-suits/. Read the original story ->
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