Texas Attorney General Ken Paxton issued warning letters to over 100 data brokers for failing to register with the Texas Secretary of State as required by the Texas Data Broker Law. The law, which took effect March 1, 2024, mandates that data brokers register and implement data protection safeguards. This enforcement action is part of a new initiative to protect Texans' privacy.
Data brokers must register with the Texas Secretary of State and implement adequate data protection safeguards as required by the Texas Data Broker Law.
In-house legal teams should review all vendor and data processing agreements, particularly those with entities acting as data brokers or handling significant personal data. Focus on clauses related to regulatory compliance (specifically registration requirements under the Texas Data Broker Law), data security obligations, data sharing permissions, audit rights, and breach notification procedures. Agreements may need amendments to explicitly require the data broker's certification of registration with the Texas Secretary of State, mandate adherence to the law's data protection safeguards, and include indemnification or termination rights for non-compliance.
Entity
data brokers
Also known as: Data Brokers
Industry
Data BrokerTexas Attorney General Ken Paxton sued Open AI Global, LLC and affiliated entities, alleging that ChatGPT was marketed as safe and reliable without disclosing risks of inaccurate or harmful outputs. The suit also alleges harms to minors and collection of their data without parental oversight; the release states no monetary penalty or specific remedy imposed.
Texas Attorney General Ken Paxton secured an Assurance of Voluntary Compliance with Lululemon USA Inc. after investigating potential PFAS and consumer representations about product safety. The agreement requires the company to maintain supply-chain chemical standards, verify vendor compliance through testing or certifications, and take corrective action for three years; no monetary penalty is stated.
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.
$1.5M
The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.