California Phone Recording Laws: Two-Party Consent

Is California a one-party or two-party consent state?

California is what people call a two-party state. A "party" is a person on the call or in the conversation, and the law's wording is all parties, so a three-way call needs all three.

Two sections of the Penal Code set the rule:

• Confidential talks, in person or by phone. Section 632(a) covers recording "without the consent of all parties to a confidential communication."
• Calls with a cell or cordless phone on either end. Section 632.7(a) covers recording "without the consent of all of the parties to a communication." This section doesn't use the word confidential.

Landline to landline: consent is needed if the call is private. Private means someone on the call reasonably expects that no one is overhearing or recording it (Flanagan v. Flanagan). The same test applies to in-person talk. Public gatherings don't count.

Being on a cell or cordless call doesn't let you record it in secret. The California Supreme Court held that Section 632.7 "prohibits parties as well as nonparties" (Smith v. LoanMe, 2021).

What consent looks like on a California call

• Fine: You ask at the start of a call if you can record, and everyone says yes.
• Not fine: You secretly record your own cell phone call with your landlord. You're on the call, but your landlord didn't agree.

Penalties for illegal recording in California

	What the law says
Damages in a civil suit	$5,000 for each violation, or three times actual damages if that's more. You don't have to show actual damages
Who can sue	Any person injured by a violation
Other relief	An injunction, meaning a court order to stop. Section 637.2 doesn't mention punitive damages or attorney fees
The crime: confidential talks	Up to one year in county jail, or state prison, and a fine up to $2,500. A court can order either one or both
The crime: cell and cordless calls	The same jail or prison terms and the same $2,500 limit. A court can order either one or both
After a prior conviction	A fine up to $10,000 under either rule, with the same jail or prison terms

A 2026 law, SB 690, covers website tracking. It doesn't change the rule for phone calls.

California court cases and settlements

For a business, these cases show that recording routine calls without a clear notice at the start can get expensive, and that a late notice can draw the state's attention. They're allegations that settled, not findings by a court.

• Narayan v. Fifth Third Bank: $50 million, final (2022). Plaintiffs alleged that call centers selling card processing recorded sales calls to California small businesses with no warning. The companies sued said those call centers didn't work for them, but they still settled for $50 million. So a call center acting for you can become your problem. A federal court in Illinois applied California's law. Each eligible call pays up to $5,000.
• People v. Wells Fargo: $8.5 million (2016). The Attorney General and district attorneys alleged the bank didn't disclose recording in time. So when the notice plays matters, not only whether it plays. The bank didn't admit liability.
• Houzz: $175,000, proposed judgment (2015). The state alleged the company recorded calls without telling everyone or getting consent. The proposed terms also included a Chief Privacy Officer and destroying the recordings, so the cost wasn't only the money.

Can a business record your call in California?

Yes, if it tells you at the very start. The California Supreme Court said about the confidential-talk rule: "A business that adequately advises all parties to a telephone call, at the outset of the conversation, of its intent to record the call would not violate the provision" (Kearney v. Salomon Smith Barney, 2006).

If you run a business: the script below works only if it's the first thing said on the call.

If you're the customer: you can decline to continue.

Some points are still open, so don't lean on them:

• A beep alone. A trial court accepted a beep tone with no spoken notice on a business call, but the California Supreme Court didn't decide the point when it heard the case.
• Staying on a cell call. The California Supreme Court didn't decide whether staying on the line was consent. Federal law can imply consent (Griggs-Ryan v. Smith), but that doesn't answer California's question.
• The word "may." We didn't find a case on whether "this call may be recorded" is clear enough. The California Supreme Court's own example is telling the customer the call "is being recorded." Say "we record" instead, because it's a clearer warning.

What if the other person is in another state?

California has the leading case: Kearney, the 2006 ruling above. Brokers in Georgia, a one-party state, recorded calls with California clients. The court held California's law applied going forward and allowed a claim for a court order to stop.

The firm owed no money for calls made before the ruling. That break covered only those past calls, so don't count on it today.

Kearney has limits. It doesn't reach a one-off personal call recorded by someone out of state. And it binds California courts, not other states. Federal courts applying Massachusetts law have looked to where the recording was made instead, so a court elsewhere may answer differently.

Courts disagree on which state's law applies. The safe course is to follow the stricter state's rule, which is often California's.

Running a call center or sales team in California?

Our advice: announce the recording at the very start of every call, inbound and outbound. In California, getting everyone's agreement is the point of the law, and an announcement at the start is how you ask for it.

1. Ask first. "We record our calls for quality and coaching. Is that okay with you?"
2. Using AI or other software? Say that too. "We record our calls and use software to review them. Is that okay with you?"
3. Start recording after they say yes. Then say "This call is being recorded, and you said that's okay" so it's on the recording. Some states want consent first, and others look for the notice on the recording, so this is a sensible default for both.
4. If someone says no, don't record. Deleting the recording when someone says no limits the harm, but it may not undo the problem.
5. Check your phone system. If it records from the moment a call connects, change that setting first.

Using a vendor or AI coaching tool? Whether a separate company counts as someone on the call isn't settled, so mention the software in the script. Our checklist for phone teams has the details.

How to protect yourself from phone fraud in California

People in California filed 238,705 fraud reports with the FTC in 2024 and reported about $1.68 billion lost, with a median loss of $542. These are reports people filed, and the FTC doesn't verify them. They cover all fraud, not only phone calls.

Can I record a scammer in California?

Not secretly. California requires everyone's consent, so say you're recording first. If a scammer hangs up, you lost nothing.

What can a crook do with a recording of my voice?

The FCC warned in 2017 about callers who record your "yes" as a "voice signature", so hang up if someone asks "Can you hear me?" If you already answered, check your statements for unauthorized charges.

The FTC warned in 2023 that scammers can clone a relative's voice to ask for money, so call that person back on a number you know.

A voice alone doesn't tell a scammer your account details, so don't give those out on a call you didn't start.

Where to report it

Report fraud at ReportFraud.ftc.gov and to the Public Inquiry Unit, Office of the Attorney General, California Department of Justice, (916) 210-6276. Our phone safety guide covers how to spot a scam and what to do if you paid.

If you think someone recorded you illegally, talk to a lawyer in your state. The federal deadline to sue is two years after you first had a reasonable chance to discover it.

Your credit card number on a recorded call in California

CallTutor's analysis of 9,483 calls from California area codes, August through October 2026, found a credit card number read out loud on 26.4% of them, compared with 21.1% across all states in our data. These are calls to companies that take payments by phone, so that isn't every call in California. Here's how we counted.

Before you read your credit card number out loud, ask if the call is recorded and if the number stays in the recording. If the agent doesn't know, ask to pay another way, like a secure link or a website.

If you think your number got out, check your statements and call your bank. For unauthorized charges, federal law caps what you owe at $50.

If your team takes payments by phone, CallTutor takes credit card numbers out of Zendesk Talk and Aircall recordings and transcripts minutes after hangup. See it on a real call.

California recording law FAQ

Is California a one-party consent state?

No. In California, being on the call doesn't give you the right to record it. Everyone on a cell or cordless call, or in a confidential conversation, has to agree.

Is California a two-party consent state?

Yes. People say two-party, and California's law says all parties. A three-way call needs all three to agree.

In California, can someone record me without telling me?

Generally no, on a cell or cordless call or in a confidential conversation. The person recording needs your consent, even if they're on the call.

Is a beep enough notice in California?

That's unsettled in California. A trial court accepted a beep in one business call case, but the state Supreme Court didn't decide the point.

How much can I sue for in California?

$5,000 for each violation, or three times your actual damages if that's more. In California, you don't have to show actual damages.

Recording laws in nearby states

• Arizona phone recording laws (one-party)
• Nevada phone recording laws (two-party)
• Oregon phone recording laws (one-party)

See all two-party consent states, or every state in our call recording laws by state guide.

This is general information, not legal advice. Laws change. We last checked these sources on November 2, 2026. If you have a legal question about a recording, talk to a lawyer in your state.