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California v. Lyft: an app-only business needs an in-app opt-out

If your service lives in an app, the opt-out has to live there too. California says sending users to a web form and asking them to log in again is not a CCPA opt-out.

Civil penalty
USD1,800,000
Regulator
California Attorney General (San Francisco Superior Court)
Law
CCPA; UCL
Stage
Settlement announced 29 October 2026; complaint filed 28 October 2026 (CGC-26-641775). Settlement announced

The problem

Riders and drivers use Lyft only through its mobile app. The complaint alleges that starting in mid-2023 Lyft sold or shared their personal information, including coarse geolocation such as city, state, region or zip code, with third parties to target and display ads in the app. That triggered the CCPA right to opt out. Lyft offered no native in-app setting. The only route was a series of links in the in-app privacy policy to a "Do Not Sell or Share My Personal Information" web page in a mobile browser, where users who were already logged in had to resubmit their login and verify their identity (Complaint; California AG).

What the complaint alleged

IssueAllegation
Sale or sharingPersonal information, including coarse geolocation, disclosed to third parties for targeted ads from mid-2023
Opt-out methodNo in-app opt-out, even though the business interacts with consumers primarily through its app
FrictionUsers were sent through privacy-policy links to a mobile web form and made to re-enter login credentials and verify identity
OriginFound during the Attorney General's 2025 investigative sweep of apps, ad networks and data brokers using geolocation data; the sweep found Lyft did not sell or share precise geolocation
ClaimsCCPA opt-out requirements and the UCL

The AG calls this its ninth CCPA enforcement action (California AG).

Technical issue

  • Data disclosed: device identifiers, IP addresses and coarse geolocation, used to target ads in the app (alleged).
  • Opt-out path: in-app privacy policy, then links to a mobile web form, then a second login and identity check (alleged).
  • Required fix: an in-app opt-out and a notice to California consumers of the right to opt out.

Inth's technical interpretation: put the Do Not Sell or Share control where the user already is, tie it to the signed-in account, and make it take effect without asking for credentials or details the app already has. The same state should gate ad SDKs and server-side data sharing.

Illustrative pattern, not the defendant's code. Generic consent API, not a specific c15t call.
// Opt-out lives on a web form that asks the signed-in user to log in again
settings.privacyLink = 'https://example.com/do-not-sell';

// In-app toggle writes the opt-out for the signed-in account
settings.onToggle('doNotSellOrShare', async (on) => {
  await consent.set({ saleOrShare: on ? 'denied' : 'granted', account: session.userId });
});

Timeline

DateEvent
Mid-2023Lyft begins selling or sharing personal information for in-app targeted ads (alleged)
2025Attorney General's investigative sweep on geolocation data (the press release dates it to March 2025)
28 October 2026Complaint filed in San Francisco Superior Court (CGC-26-641775)
29 October 2026Settlement announced: $1.8 million, in-app opt-out and consumer notice

Outcome

Lyft settled. It must pay $1.8 million in civil penalties, provide an in-app opt-out and notify California consumers of their right to stop the sale of their personal information (California AG). The sources reviewed do not say whether Lyft admitted the allegations.

What it cost

ItemAmountSource
Civil penalties$1.8 millionCalifornia AG
Product changesIn-app opt-out and consumer noticeCalifornia AG

Why it matters

  • The opt-out must match how you interact with users. An app-only business cannot rely on a web form.
  • No re-login for a signed-in user. Asking for credentials the business already has was pleaded as an unnecessary barrier.
  • Coarse location counts. The sweep focused on geolocation, and city or zip-level data was enough to trigger the opt-out right here. Compare General Motors, Sephora and Healthline.

How Inth catches this

  • Consent banner

    Provides an opt-out of sale or sharing that can sit inside your product and writes the choice to the signed-in account, so tags and SDKs read one denied state.

  • Website audit

    Checks websites for a working Do Not Sell or Share path and for ad and analytics requests after an opt-out. It does not test native app flows.

Out of reach

  • Inth's audit covers websites, not native mobile apps, which is where Lyft's missing opt-out was.

Opt-out records with choice, account or device, country and policy version.

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Sources and limits

The press release and the complaint were opened. The settlement document is a scanned PDF and its text was not read, so its injunctive terms beyond those in the press release are not described here.

Source review: 30 October 2026. This page describes the cited record and procedural stage. It does not audit the company's current systems. Inth wrote the technical checks; they cannot decide which laws apply or prove compliance.