As businesses increasingly deploy AI-powered call centers to streamline customer service, plaintiffs have turned to decades-old wiretapping laws to challenge these tools. In a recent decision, however, an Illinois federal district court held that use of an AI call analysis platform without caller consent does not violate the federal Wiretap Act because it falls within the statute’s ordinary course of business exception. Lisota v. Heartland Dental, LLC, 2026 WL 91667, at *6 (N.D. Ill. Jan. 13, 2026).

In Lisota, the plaintiff alleged that her dentist’s office used Heartland, an administrative services provider that answered incoming calls which, in turn, engaged an AI call analysis service. Because the plaintiff allegedly was neither notified of nor consented to the AI tool’s involvement, she claimed that the tool unlawfully intercepted her calls in violation of the Wiretap Act and that Heartland was liable for procuring the interception.

The Wiretap Act prohibits certain call interception, but it exempts interceptions made “by a provider of wire or electronic communication service in the ordinary course of its business.” 18 U.S.C.A. § 2510(5)(a)(ii). The parties agreed that the AI tool qualified as an electronic communication service, but they disputed whether its recording and analysis occurred in the ordinary course of business. The court held that it did, and further concluded that Heartland was not liable for simply using the AI service.

Deeming the AI tool’s automated call analysis features “critical to its pitch,” the court rejected the plaintiff’s argument that the tool served impermissible independent purposes. Lisota, 2026 WL 91667, at *5. Generating more dental appointments, for example, was the tool “integrat[ing] listening and analysis into its phone service.” Id. at *6. Refining its AI with call data was “at minimum incidental” to providing the service. Id. (cleaned up).

Heartland additionally argued that it was exempt under the Wiretap Act’s “party exception,” which permits a party to a call to record the conversation. Although the court did not decide this issue because its ruling on the ordinary-course exception resolved the case, it noted that identifying who qualifies as a “party” can become complex in such multi-step call-routing scenarios.

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Photo of Kathryn Cahoy Kathryn Cahoy

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology…

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology, entertainment, consumer products, and financial services. Kate also plays a key role in the firm’s mass arbitration defense practice. She regularly advises companies on the risks associated with mass arbitration and has a proven track record of successfully defending clients against these challenges.

Leveraging her success in class action litigation and arbitration, Kate helps clients develop strategic and innovative solutions to their most challenging legal issues. She has extensive experience litigating cases brought under California’s Section 17200 and other consumer protection, competition, and privacy laws, including the Sherman Act, California Consumer Privacy Act (CCPA), California Invasion of Privacy Act (CIPA), Wiretap Act, Stored Communications Act, Children’s Online Privacy Protection Act (COPPA), Video Privacy Protection Act (VPPA), along with common law and constitutional rights of privacy, among others.

Kate’s exceptional legal work has earned widespread recognition. The Daily Journal named her successful defense of Meta and Microsoft cases described below as among its Top Verdicts, recognizing some of the largest and most impactful verdicts in California.

Recent Successes:

Represented Meta (formerly Facebook) in a putative nationwide advertiser class action alleging violations under the California Unfair Competition Law (UCL) related to charges from allegedly “fake” accounts. Successfully narrowed claims at the pleadings stage, defeated class certification, opposed a Rule 23(f) petition, won summary judgment, and defended the victory on appeal to the Ninth Circuit. (Daily Journal, Top Verdicts of 2021. Law.com recognized Kate with a Litigator of the Week Shoutout.
Defeated a landmark class action lawsuit against Microsoft and OpenAI contending that the defendants scraped data from the internet for training generative AI services and incorporated data from users’ prompts, allegedly in violation of CIPA, the Computer Fraud and Abuse Act (CFAA), and other privacy and consumer protection laws. (Daily Journal, Top Verdicts of 2024.)

Kate regularly contributes to the firm’s blog, Inside Class Actions, and was recently featured in a Litigation Daily interview titled “Where Privacy Laws and Litigation Trends Collide.” In recognition of her achievements in privacy and antitrust class action litigation, the Daily Journal named her as one of their Top Antitrust Lawyers (2024), Top Cyber Lawyers (2022), and Top Women Lawyers in California (2023). Additionally, she received the Women of Influence award from the Silicon Valley Business Journal, was recognized by the Daily Journal as a Top Attorney Under 40, and also was named to Bloomberg Law’s They’ve Got Next: The 40 Under 40 list.

Photo of Libbie Canter Libbie Canter

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws.

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws. She routinely supports clients on their efforts to launch new products and services involving emerging technologies, and she has assisted dozens of clients with their efforts to prepare for and comply with federal and state laws, including the California Consumer Privacy Act, the Colorado AI Act, and other state laws. As part of her practice, she also regularly represents clients in strategic transactions involving personal data, cybersecurity, and artificial intelligence risk and represents clients in enforcement and litigation postures.

Libbie represents clients across industries, but she also has deep expertise in advising clients in highly-regulated sectors, including financial services and digital health companies. She counsels these companies — and their technology and advertising partners — on how to address legacy regulatory issues and the cutting edge issues that have emerged with industry innovations and data collaborations.

Chambers USA 2025 ranks Libbie in Band 3 Nationwide for both Privacy & Data Security: Privacy and Privacy & Data Security: Healthcare. Chambers USA notes, Libbie is “incredibly sharp and really thorough. She can do the nitty-gritty, in-the-weeds legal work incredibly well but she also can think of a bigger-picture business context and help to think through practical solutions.”

Photo of Thea McCullough Thea McCullough

Thea McCullough counsels national and multinational companies across industries as a member of the Data Privacy and Cybersecurity, Litigation, and Public Policy practice groups.

Thea advises clients on a broad range of privacy issues, such as privacy policies and data practices, responses to…

Thea McCullough counsels national and multinational companies across industries as a member of the Data Privacy and Cybersecurity, Litigation, and Public Policy practice groups.

Thea advises clients on a broad range of privacy issues, such as privacy policies and data practices, responses to regulatory inquiries, and compliance obligations under federal and state privacy regulations, including biometric privacy laws. She also represents clients before the Federal Trade Commission in privacy enforcement actions and in consumer protection litigation.

Thea draws on her past experience across all branches of government to inform her practice and to advise clients on public policy matters. Most recently, Thea served as a clerk for the U.S. District Court for the Eastern District of Texas. Prior to beginning her legal career, Thea served as the communications director for the White House National Space Council, where she spearheaded messaging campaigns for Presidential Space Policy Directives and the administration’s civil, commercial, and defense space policy initiatives, and previously as the communications director for the U.S. House Committee on Science, Space, and Technology, where she managed the communications team and developed messaging strategies for policy and legislation covering several issue areas, including cybersecurity, advanced technologies, space, energy, environment, and oversight. She also served as a national spokesperson for President Trump’s 2020 campaign.

Thea is admitted to the DC Bar under DC App. R. 46-A (Emergency Examination Waiver); Practice Supervised by DC Bar members.