Updated: March 2021

Smith v. LoanMe

This case concerns the parties covered by California Penal Code section 632.7, part of the California Invasion of Privacy Act. Courts have long interpreted the statute as prohibiting third-party eavesdropping and requiring that all parties must consent to the recording of a call. Smith brought a class action against LoanMe for recording a call without providing notice or obtaining consent. The California Superior Court sided with LoanMe, finding that a "beep" tone at the beginning of the call was sufficient notice that the call would be recorded, and that staying on the line after the beep signaled consent to recording the call. Smith appealed. The Court of Appeal also ruled in favor of LoanMe but on different grounds, holding that the statute applies only to third-party eavesdroppers, not to parties to a call. Smith petitioned the California Supreme Court for review, which was granted. In July 2020, Consumer Action joined EPIC and the Consumer Federation of California in an amicus brief support of the appellant.

Learn more about the case here.


Quick Menu

Facebook FTwitter T

About Menu