California Call Recording Laws: All-Party Consent

California requires the consent of every party to record a phone call. Penal Code § 632 covers confidential conversations, and § 632.7 goes further: any call involving a cellphone or cordless phone needs all parties' consent to record, whether or not anyone expected privacy.

California is the state that most shapes how US businesses record calls. Its civil remedy, $5,000 per violation without proof of harm, has fueled class actions, and California courts have applied its rules to companies outside the state. If you take calls from California, plan your recording practice around this page.

This is general information, not legal advice.

California recording law at a glance

Question	Answer in California
Consent rule for phone calls	All parties
Main statutes	Penal Code §§ 632, 632.7 (part of the Invasion of Privacy Act)
Cellphone and cordless calls	All-party consent regardless of confidentiality
Criminal penalty, first offense	Fine up to $2,500 per violation, up to 1 year in jail, or both
Repeat offense	Fine up to $10,000 per violation
Civil damages	Greater of $5,000 per violation or 3x actual damages (§ 637.2)
Proof of harm needed to sue	No

Penal Code § 632: confidential communications

Section 632(a) punishes anyone who, "intentionally and without the consent of all parties to a confidential communication," uses a recording device to record it, whether the conversation happens in person or "by means of a telegraph, telephone, or other device, except a radio."

What "confidential" means

Section 632(c) defines a confidential communication as one carried on in circumstances that reasonably indicate a party wants it confined to the parties. It excludes public gatherings, open government proceedings and any circumstance where the parties may reasonably expect to be overheard or recorded.

The California Supreme Court, in Flanagan v. Flanagan (2002), said a conversation is confidential if a party has an objectively reasonable expectation that it is not being overheard or recorded. Customer calls about accounts, health, money or disputes will usually meet that test.

Businesses are "persons"

Section 632(b) defines "person" to include businesses, corporations and LLCs. It excludes an individual known by all parties to be overhearing or recording, which is why disclosure works.

Penal Code § 632.7: cellphone and cordless calls

Section 632.7 applies to communications between two cellphones, a cellphone and a landline, two cordless phones, a cordless phone and a landline, or a cordless phone and a cellphone. Anyone who "without the consent of all of the parties" intercepts or receives and intentionally records such a call faces the same penalties as § 632.

There is no confidentiality requirement. In Smith v. LoanMe, Inc. (2021), the California Supreme Court held that § 632.7 applies to the parties to a call, not only to outside eavesdroppers. Since most customers call from cellphones, § 632.7 effectively requires all-party consent for nearly every recorded business call involving a California participant.

One-way recordings

According to the Reporters Committee for Freedom of the Press (RCFP), a California appellate court held in Gruber v. Yelp Inc. (2020) that even a "one-way" recording, where only the business's side is captured, could violate the law without all-party consent. Do not assume recording only your agent's audio avoids the rule.

Penalties

Violation	Statute	First offense	Repeat offense
Recording a confidential communication without all-party consent	§ 632	Fine up to $2,500 per violation, jail up to 1 year, or state prison	Fine up to $10,000 per violation
Recording a cellphone or cordless call without all-party consent	§ 632.7	Fine up to $2,500, jail up to 1 year, or state prison	Fine up to $10,000
Wiretapping a line	§ 631	Per RCFP: fine up to $2,500, jail up to 1 year	Fine up to $10,000
Disclosure by a non-party	§ 637	Per RCFP: up to $5,000 and 1 year	—

Civil liability: § 637.2

Section 637.2(a) lets anyone injured by a violation sue for the greater of:

• $5,000 per violation, or
• three times actual damages.

Section 637.2(c) says actual damages are not a prerequisite. Courts can also issue injunctions. Because damages are per violation, a business that records thousands of calls without proper notice faces large class exposure. California's wiretap provision, § 631, has also been the basis of many suits over website chat and session-recording tools.

Calls with people outside California

In Kearney v. Salomon Smith Barney, Inc. (2006), the California Supreme Court considered a Georgia brokerage, a one-party state, whose Atlanta employees recorded calls with California clients. The court applied California's all-party rule, at least for future conduct. The lesson for every business in the country: if callers may be in California, follow California law.

Neighboring state	Rule for phone calls
Oregon	One-party for phone calls
Nevada	All-party for phone calls
Arizona	One-party

For more, read interstate call recording consent and see the state-by-state table.

How California businesses comply

Inbound calls

Play a recording notice before the conversation begins. Your agent should not discuss account details before the caller has heard it. If a caller says they do not want to be recorded, stop recording or offer another channel.

Outbound calls

Disclose at the start: "I'm calling from [Business]. This call is recorded." A notice buried after a minute of conversation leaves that first minute unrecorded with consent. The safe pattern is notice first, then recording.

Transfers and conferences

When a third party joins, such as a specialist or a vendor, tell them the call is recorded as well.

Employees

California employees are parties too. Give staff written notice that business calls are recorded and monitored, and have them acknowledge it.

AI note-takers and transcription

Transcription and AI summary tools rely on a recording or live audio capture. Treat them exactly like recording: notice and consent from everyone on the call.

California recording checklist

• Recording notice plays before any conversation on recorded inbound calls
• Outbound calls disclose recording in the first sentence
• Third parties added to a call are told it is recorded
• Callers who object are not recorded
• Written employee notice and acknowledgment
• AI transcription and summaries treated as recording
• Website chat and session tools reviewed under § 631
• Access controls and retention schedule for recordings

Wording you can use is in call recording disclosure scripts.

Recording calls in California with Callata

Callata's recording setting is built around notice first. When recording is on, Callata plays "This call may be recorded." to both parties as soon as a call connects, on inbound and outbound calls, and records the call. Recorded calls are transcribed and summarized with sentiment and action items. Callata's terms still make you responsible for complying with consent laws, including telling anyone added later. The plan is $99 a month for up to five users, then $20 per additional user, with recording included. Sign up.