Texas Attorney General Ken Paxton announced investigations into 15 companies, including Character.AI, Reddit, Instagram, and Discord, for potential violations of the SCOPE Act and TDPSA concerning children's privacy. The investigations target practices such as unauthorized sharing of minors' personal data and failure to provide parental controls. This action is part of Texas's broader initiative to enforce data privacy laws.
In-house legal teams should review all agreements involving underage users, including terms of service, privacy policies, and data processing addendums with vendors or platforms that collect/minors' data. Focus on clauses governing data collection, sharing, retention, and parental consent mechanisms. Ensure contracts incorporate explicit requirements for age verification, parental consent/opt-out processes, data minimization for minors, and restrictions on profiling or targeted advertising toward children. Amendments may be needed to align with SCOPE Act's parental empowerment provisions and TDPSA's restrictions on processing minors' sensitive data, including adding audit rights and data deletion protocols.
Entity
Character.AI, Reddit, Instagram, Discord, and 11 other companies
Also known as: Character.AI
Industry
TechnologyTexas 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.