Long Island Small Businesses Face a Perfect Storm: Data Privacy Lawsuits Surge as New York Considers CCPA-Style Laws in 2025

The data privacy litigation landscape has exploded across Long Island in 2025, with small businesses finding themselves increasingly vulnerable to costly lawsuits under existing New York privacy laws while facing the looming threat of comprehensive legislation similar to California’s Consumer Privacy Act (CCPA). With nearly 4,000 privacy-related cases filed nationwide in 2024—up from just over 200 cases in 2023—the litigation trend has continued into 2025, creating unprecedented legal exposure for businesses of all sizes.

The Current Legal Framework Threatening Long Island Businesses

While New York has yet to pass comprehensive privacy legislation like the CCPA, New York does not yet have a comprehensive data privacy law in effect but it governs how businesses handle personal data. However, existing laws like the SHIELD Act are already creating significant compliance burdens. The Stop Hacks and Improve Electronic Data Security Act (NY SHIELD Act) requires a business holding personal data on NY residents to take active steps to implement reasonable cybersecurity protections and safeguards.

The enforcement landscape has become particularly aggressive. Only the New York Attorney General has the power to take action by applying for an injunction and courts may impose civil penalties of between $5000 and $250,000. For small businesses on Long Island, these penalties can be devastating, especially when multiplied across multiple violations or affected consumers.

New York’s Privacy Act: The CCPA-Style Threat on the Horizon

The NYPA was reintroduced in 2025 as bills A4947 and S3044, and it passed a key Senate committee vote in May. If passed, this legislation would dramatically expand privacy rights for New York consumers and create new liability risks for businesses. This act also grants New York consumers who have been injured as the result of a violation a private right of action, which includes reasonable attorneys’ fees to a prevailing plaintiff.

The proposed law would apply to businesses that make 50% or more of revenue from selling personal data, so it’s not just targeted at tech giants; any company handling significant consumer data in New York may be affected. This broad scope means that many Long Island small businesses—from healthcare practices to retail stores—could find themselves subject to these new requirements.

The Small Business Vulnerability

The majority of wrongful collection claims received by Coalition impact businesses with less than $100M in revenue. Without access to extensive legal resources, small and midsize businesses (SMBs) are often unaware that they are violating privacy laws in the first place. This lack of awareness, combined with limited compliance budgets, creates a perfect storm for litigation exposure.

The financial impact can be severe. For example, the civil penalties for violations of CCPA range between $2,500 and $7,500 per violation and each affected person’s data can be treated as a separate violation. For a small business that experiences a data breach affecting hundreds of customers, the potential liability could quickly reach into the millions.

Emerging Litigation Trends Targeting Small Businesses

A concerning new wave of litigation targets companies using generative AI for customer service interactions. Following the February 2025 Ambriz v. Google decision allowing such claims to proceed, plaintiffs’ firms have filed numerous similar cases alleging that AI tools transcribe and analyze customer calls without proper consent, violating state wiretapping laws.

Additionally, since 2021, New York City’s administrative code has imposed notice requirements and usage limitations for commercial establishments that collect customers’ biometric data. This creates another layer of compliance complexity for Long Island businesses operating in or near New York City.

The Role of Experienced Legal Counsel

Given the complex and evolving nature of data privacy law, Long Island businesses need experienced legal representation to navigate these challenges. The Frank Law Firm P.C., located in Old Brookville, has been serving Long Island businesses with comprehensive legal services for years. The Frank Law Firm P.C. is a team of professional attorneys and support staff that provide legal services for businesses on Long Island, in New York City, and the surrounding areas. Thomas J. Frank is a commercial litigator with a focus in bankruptcy, real estate, foreclosure, and general business disputes.

When facing data privacy litigation, businesses need a commercial litigation attorney long island who understands both the technical aspects of privacy law and the practical realities of running a business. Our lawyers have extensive experience handling cases involving corporate disputes, contracts, foreclosure, bankruptcy, residential and commercial real estate, financing, and much more. No matter what your legal issue is, our dedicated group of lawyers will go above and beyond to resolve it successfully.

Proactive Steps for Long Island Businesses

Rather than waiting for litigation to strike, Long Island businesses should take proactive steps to protect themselves. This includes conducting privacy audits, implementing proper data security measures, and ensuring compliance with existing laws like the SHIELD Act. At the Frank Law Firm, we recognize that each client is unique so we focus on understanding your history and your future goals, providing expert advice about the choices available to you, and guiding you through any legal process from beginning to end. When you hire our firm, we promise to do everything within our power to protect your interests and advance your objectives.

Looking Ahead: Preparing for New York’s Privacy Future

While the NYPA still hasn’t cleared both chambers or reached the governor’s desk, meaning it’s not enforceable, yet, businesses should prepare for its eventual passage. With other states like Pennsylvania advancing their own laws, pressure is growing for New York to act. If momentum continues and the Assembly unites around a framework, 2025 could be the year it breaks through.

The data privacy litigation explosion affecting Long Island businesses represents a fundamental shift in how companies must approach data handling and compliance. With potential CCPA-style legislation on the horizon and existing laws already creating significant liability, the time for proactive legal planning is now. Businesses that wait until they’re served with a lawsuit may find themselves facing not only substantial financial penalties but also the complex challenge of defending their practices in an increasingly hostile litigation environment.

For Long Island businesses seeking to navigate these challenges, partnering with experienced legal counsel who understands both the local business environment and the evolving privacy law landscape is essential for long-term success and protection.