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SettlementMedium Risk

CA AG Settles with Houzz Over Illegal Call Recordings for $175K

Houzz Inc.October 2, 2015California Attorney General

Penalty Amount

$175,000

Summary

The California Attorney General settled with Houzz Inc. for secretly recording incoming and outgoing telephone calls from March to September 2013 without notifying or obtaining consent from all parties, violating state wiretapping and eavesdropping laws. The settlement requires Houzz to pay $175,000, appoint a Chief Privacy Officer, conduct a privacy risk assessment, secure and destroy the recordings, and implement compliance measures.

Remedy

Houzz must pay a $175,000 penalty, appoint a Chief Privacy Officer to oversee compliance, conduct a comprehensive privacy risk assessment, securely destroy all illegally recorded calls, and implement policies to ensure future compliance with California's privacy laws.

Monetary PenaltyConsent DecreeCompliance ProgramData DeletionCorrective Notice

Contract Impact

In-house legal teams should review all vendor, customer, and service agreements where telephone communications may occur, particularly those involving customer support, sales calls, or remote services. Specific clauses to audit include any provisions on call recording, data collection, consent mechanisms, privacy compliance, and data retention/destruction. Changes may be needed to mandate explicit, documented consent from all parties before recording calls, implement secure storage and scheduled destruction protocols for any retained recordings, and add obligations to conduct periodic privacy risk assessments. Agreements should also be updated to reflect the requirement to appoint a designated privacy officer responsible for compliance.

Contract Search Terms

call recording consenttelephonic monitoring policywiretap compliance clauseeavesdropping prohibitionprivacy risk assessment requirementdata destruction policyChief Privacy Officer mandatetwo-party consentaudio surveillance clausecommunication interception

Laws Cited

California Invasion of Privacy Act (CIPA)Cal. Penal Code 631Cal. Penal Code 632
Cal. Penal Code 631Cal. Penal Code 632

Violation Types

Entity Details

Entity

Houzz Inc.

Also known as: Houzz

Industry

Technology

Official Sources

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