Texas Attorney General Ken Paxton launched investigations into Character.AI and 14 other companies, including Reddit, Instagram, and Discord, over potential violations of children’s privacy and safety laws. The investigations focus on compliance with the SCOPE Act and Texas Data Privacy and Security Act (TDPSA), which require parental consent for sharing minors’ data and mandate notice and consent requirements for children’s personal information. No fines or remedies have been imposed as the investigations are ongoing.
In-house legal teams should review all vendor agreements involving digital services, social media platforms, AI products, and any services collecting data from minors to ensure compliance with the SCOPE Act and TDPSA. Key clauses to update include those governing parental consent for collection, sharing, or sale of minors’ personal identifying information, requirements to provide parents with privacy control tools, and notice and consent provisions for processing minors’ data. Teams should also verify that vendors prohibit unauthorized sharing or disclosure of children’s data, and include audit rights to confirm adherence to Texas children’s privacy laws. Additionally, agreements with AI product vendors should specifically address compliance with minor data protection requirements under applicable state laws.
Entity
Character.AI, Reddit, Instagram, Discord, and 14 other companies
Industry
Social Media"Character.AI and fourteen other companies including Reddit, Instagram, and Discord"
"Securing Children Online through Parental Empowerment (“SCOPE”) Act"
"Texas Data Privacy and Security Act (“TDPSA”)"
"prohibits digital service providers from sharing, disclosing, or selling a minor’s personal identifying information without permission from the child’s parent or legal guardian"
"TDPSA imposes strict notice and consent requirements on companies that collect and use minors’ personal data"
"launched investigations into Character.AI and fourteen other companies"
Texas Attorney General Ken Paxton launched an investigation into the American Academy of Pediatrics (AAP) over concerns that the organization may be promoting and recommending childhood vaccines for financial gain. The AAP has been issued a Civil Investigative Demand to determine the basis of its vaccine recommendations and whether they are influenced by financial incentives from pharmaceutical donors.
Texas Attorney General Ken Paxton announced an investigation into major food manufacturers, including Frito Lay, Flora Food Group, and ACH Foods, over misleading 'heart healthy' labeling. The investigation will examine whether their advertising practices violate the Texas Deceptive Trade Practices Act by misrepresenting the health value of their products. Civil Investigative Demands have been issued to these companies.
Texas Attorney General Ken Paxton opened an investigation into Lone Star Pups, LLC for misleading consumers about the origin and veterinary care of puppies sold online. The company allegedly misrepresents breeder certifications and a '10 Year Health Guarantee' with restrictive fine print. The investigation focuses on potential violations of the Texas Deceptive Trade Practices Act.
Texas Attorney General Ken Paxton announced industry-wide investigations into feminine care and cosmetic product brands, including Tampax, Kotex, L., and LOLA, over potential deceptive trade practices related to undisclosed toxic chemicals and heavy metals in their products. The investigations focus on whether consumers were misled about product safety and ingredient composition under the Texas Deceptive Trade Practices Act.
Texas 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.