Texas Attorney General Ken Paxton opened an investigation into multiple car manufacturers for collecting and selling driver data to third parties, including insurance companies, without consumers' knowledge or consent. The investigation, conducted under the Texas Deceptive Trade Practices – Consumer Protection Act, seeks documents about data collection practices and disclosures made to customers. The AG's office is concerned about invasive data collection and potential deceptive practices.
In-house legal teams should review all agreements involving data handling, particularly vendor contracts with third-party data recipients (e.g., insurance companies), customer-facing privacy policies and terms of service, and any data processing agreements. Focus on clauses governing data sharing, third-party disclosures, consumer consent mechanisms, data retention, and breach notification. Changes may be needed to ensure explicit, informed consent for driver data collection and sale, implement clear and conspicuous disclosures about data practices, include opt-out mechanisms, and align retention and security protocols with the Texas Deceptive Trade Practices – Consumer Protection Act to avoid deceptive practices.
Entity
Multiple car manufacturers
Also known as: Car Manufacturers
Industry
AutomotiveTexas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
Texas Attorney General Ken Paxton opened an investigation into LinkedIn Corporation over allegations that the company advertised and profited from fake or misleading job opportunities ("ghost jobs") on its platform. The investigation focuses on whether LinkedIn misled consumers who paid for Premium subscriptions by failing to disclose that a significant percentage of job postings may be inactive or not genuine hiring opportunities.
$45.0M
Attorney General Ken Paxton secured a $45 million multistate settlement with Block, Inc. (Cash App) for misleading consumers about the safety of its platform and failing to protect users from fraud. The settlement requires Cash App to maintain 24-hour customer support, cease deceptive safety claims, and fulfill its legal duty to investigate and reimburse unauthorized transactions.
$13.0M
Texas Attorney General Ken Paxton secured a settlement with Walmart over deceptive practices in its Spark Driver program. Walmart misrepresented driver pay, including failing to pass on customer tips and altering base pay after drivers accepted offers. The $13 million settlement provides direct payments to affected Texas drivers and requires Walmart to implement honest compensation practices.
Texas Attorney General Ken Paxton announced an investigation into StubHub for failing to deliver FIFA World Cup tickets that fans purchased. The investigation focuses on reports of 'ghost ticketing,' where sellers list tickets they do not possess, collect payment, and cancel when unable to deliver.