TLDR: The legal landscape in 2025 is marked by intensified litigation and regulatory scrutiny across several key areas: children’s online privacy, the implications of AI-generated content and systems, and the protection of sensitive health data. Businesses face a complex web of state-level privacy laws, increased enforcement actions by federal agencies like the FTC, and novel applications of older statutes to address modern technological challenges. AI’s dual role in cybersecurity and its potential for misuse, alongside the continued focus on biometric data and data broker activities, underscores a dynamic and challenging environment for compliance.
The year 2025 is witnessing a significant evolution in litigation trends, with a pronounced focus on children’s privacy, the legal ramifications of AI-generated search responses and broader AI technologies, and the intricate issues surrounding medical billing and health data privacy. This shift reflects the rapid advancements in technology and the growing public and regulatory demand for enhanced data protection.
Children’s Privacy Takes Center Stage
Children’s online privacy remains a high-priority area for regulators and litigators. The Federal Trade Commission (FTC) has continued its robust enforcement of the Children’s Online Privacy Protection Act (COPPA), with actions such as a notable settlement against TikTok in 2024 for alleged violations. Furthermore, the FTC finalized changes to the COPPA Rule, mandating opt-in consent from parents for targeted advertising and third-party disclosures of children’s personal information. Legislative efforts are also expected to intensify, with the Kids Online Safety Act and the Teen’s Online Privacy Protection Act (collectively known as COPPA 2.0) likely to be revisited in Congress, aiming to strengthen protections for minors online.
AI-Generated Responses and Emerging AI Litigation
Artificial intelligence, particularly in the context of AI-generated search responses and automated systems, is a burgeoning field for legal challenges. The year 2025 is expected to see heightened scrutiny on algorithmic transparency and biometric protections. Generative AI, as it matures, is drawing significant regulatory attention, with potential legislation and regulations addressing marketing claims, employment, transparency, AI deepfakes, and publicity rights.
States are leading the charge in AI-related legislation. Colorado, for instance, adopted the Colorado Anti-Discrimination in AI Law (Colorado ADAI) in 2024, which establishes requirements for developers and deployers of ‘high-risk artificial intelligence systems’ and mandates disclosure for AI systems interacting with consumers. This law is set to go into effect in February 2026, with rulemaking activities commencing in 2025. California’s Privacy Protection Agency (CPPA) is also actively engaged in rulemaking for automated decision-making technology (ADMT).
AI’s dual nature as both a cybersecurity advancement and a source of new risks is evident. While businesses deploy AI tools for threat detection and compliance monitoring, cybercriminals leverage AI for sophisticated attacks like deepfake impersonation, advanced phishing, and large-scale data theft. This necessitates comprehensive AI governance frameworks, including regular algorithm audits, bias detection systems, and accountability structures.
Healthcare Data and Surprise Medical Bills
While the initial news summary mentioned ‘surprise medical bills,’ the detailed research primarily highlighted the broader trend of healthcare data privacy litigation. New comprehensive consumer health privacy laws in states like Connecticut, Nevada, and Washington (My Health My Data Act – MHMDA) are leading to increased enforcement actions. The MHMDA, effective in 2024, imposes stringent protections on consumer health data, extending beyond traditional providers to wellness apps and online health services. It requires explicit consent for data collection or sharing, transparent privacy policies, and robust security measures. Notably, the first lawsuit under MHMDA was filed against Amazon, signaling a significant test case for the law’s enforcement.
In 2024, the HHS Office for Civil Rights (OCR) concluded over 22 enforcement actions under HIPAA. However, a landmark ruling in American Hospital Association v. Becerra curtailed HHS’s authority over online tracking liability under HIPAA, limiting its regulatory scope to information that both identifies an individual and directly relates to their health.
Broader Privacy Litigation Trends
Beyond these specific areas, the overall privacy landscape is characterized by:
State Law Fragmentation: With no comprehensive federal privacy law, states continue to enact their own, bringing the total to 20 by the end of 2025. This patchwork creates complex compliance challenges for businesses.
FTC Enforcement: The FTC continues to prioritize safeguarding sensitive data, including location tracking, health data, and cybersecurity, and has intensified its focus on deceptive claims related to AI products and services.
Biometric Data Scrutiny: The collection and use of biometric data face ongoing scrutiny through litigation (e.g., under Illinois’ BIPA) and enforcement agencies, with key issues revolving around consent, notice, and data retention.
Data Brokers: Regulators at both federal and state levels are intensifying their focus on data brokers, with new laws like the Protecting Americans’ Data from Foreign Adversaries Act (PADFA) restricting data sales to foreign adversary countries.
Internet Tracking Technologies: Litigation continues to surge over the use of internet tracking technologies such as cookies, pixels, chatbots, and session replay, with plaintiffs repurposing older statutes like the Video Privacy Protection Act (VPPA) and the California Invasion of Privacy Act (CIPA) to address modern online privacy concerns.
TCPA Rules: New Telephone Consumer Protection Act (TCPA) rules regarding one-to-one consent for telemarketing calls and honoring opt-out requests are taking effect in 2025, likely fueling further litigation.
Also Read:
- Legal Cybersecurity Professionals Grapple with Escalating AI-Powered Threats
- Legal Technology Sector Sees Significant AI Advancements and Funding Rounds
In conclusion, businesses must proactively adapt to this evolving regulatory and litigation environment by refining consent mechanisms, implementing robust data governance frameworks, and ensuring AI compliance to mitigate legal risks and maintain consumer trust.
