Proptech Firm Backs Brokers Against California Privacy Shakedown Suits
Lofty, a proptech firm serving more than 91,000 real estate professionals, launched a free legal defense program for customers targeted by demand letters alleging violations of the California Invasion of Privacy Act. The company says brokerages nationwide have received templated letters from serial litigants claiming standard website analytics tools like Google Analytics violate CIPA, with demands often reaching $50,000 and settlements typically between $5,000 and $15,000. On July 8, Lofty filed suit against Vivek Shah, who has filed at least 19 CIPA lawsuits and sent Lofty a demand letter in June threatening litigation over the company’s use of third-party tracking code. Both Zillow and Redfin faced similar CIPA suits in 2024 from the same plaintiff over tracking pixels; both cases were voluntarily dismissed.
Lofty’s CIPA Defense Program offers customers a review and written assessment of demand letters, a formal legal response to claimants, legal support if formal complaints are filed, and ongoing case updates. The company said it will not pressure customers to settle and aims for dismissal rather than settlement. Lofty argues the legal theory behind the claims is meritless, noting California’s law was designed to regulate telephone surveillance, not commercial website analytics. The program covers CIPA-related demands targeting Lofty’s standard analytics tools on Lofty-hosted websites and is open to active clients and new clients who migrate from rival platforms after receiving a demand letter.
Shah’s draft complaint alleges Lofty engaged in unlawful internet surveillance by transmitting visitors’ IP addresses and device identifiers to third parties for marketing and analytics without consent. Lofty filed its complaint to establish certainty about the legality of its conduct and protect its customers from ongoing threats. The company, a majority-owned subsidiary of Moatable and formerly known as Chime Technologies, says a ruling against its analytics tools would require months of staff resources and significant platform re-architecture. Lofty powers more than 30,000 websites and offers an agentic AI operating system designed to manage workflows for brokerages and agents.
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