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A New Privacy Nuisance Suit Wave Gathers Strength In Arizona

By Tyler Thompson
February 01, 2025

Plaintiff’s lawyers struggling to find another nuisance suit cash grab in a desert of privacy laws without a private right of action appear to have found their oasis.
A new wave of class action lawsuits has emerged in Arizona, targeting companies for their use of email tracking pixels. These cases allege violations of Arizona’s Telephone, Utility, and Communication Service Records Act (A.R.S. §44-1376 et seq.), which prohibits the unauthorized collection of “communication service records.”
Like a hiker desperate for water in the Valley of the Sun, plaintiff’s firms are desperately trying to tie the little-known law to common email tracking pixel technologies. With the potential for class-action litigation and significant financial exposure, companies relying on these technologies must reassess their risk.

What Are Email Tracking Pixels and How Are They Used?

Email tracking pixels are small, typically invisible image files embedded into many mass marketing emails. These pixels are typically one pixel by one pixel in size — hence the name — and are hosted on a remote server. When a recipient opens an email containing such a pixel, their device automatically loads the image from the server, which generates a record of the interaction.
While tracking pixels might sound sinister, these tools are widely used in digital marketing and analytics to track user engagement. Their capabilities include:

  1. Email Open Tracking: Marketers can determine when and how often an email is opened, providing insights into engagement rates.
  2. Geolocation Data: By identifying the IP address of the device accessing the email, pixels can approximate the recipient’s geographic location.
  3. Device and Browser Information: The type of device, operating system, and browser used to view the email can be recorded, helping optimize marketing strategies for specific platforms.
  4. Interaction Tracking: Pixels can track whether a recipient clicks on links within the email, forwards it, or downloads attachments.
  5. Time Spent Reading: Some pixels measure how long a recipient views the email, providing insights into content effectiveness.
The information gathered through tracking pixels is used for designing targeted advertising campaigns, segmenting audiences, and improving overall marketing effectiveness. For example, data collected from tracking pixels can help businesses identify high-value customers, refine messaging, and improve conversion rates.
However, these pixels are leading to allegations of unauthorized data collection in violation of Arizona’s Telephone, Utility, and Communication Service Records Act.

The Arizona Telephone, Utility, and Communication Service Records Act

Overview of the Act

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