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Warning LetterLow Risk

Texas AG Warns 100+ Data Brokers Over Registration Failures

data brokersJune 18, 2024Texas Attorney General

Summary

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.

Remedy

Data brokers must register with the Texas Secretary of State and implement adequate data protection safeguards as required by the Texas Data Broker Law.

Compliance ProgramReporting Requirements

Contract Impact

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.

Contract Search Terms

data broker registrationdata protection safeguardsTexas Data Broker Lawdata sharing agreementdata processing addendumdata retention schedulebreach notification clauseconsent mechanismprivacy policyvendor management

Laws Cited

Texas Data Broker LawTex. Bus. & Com. Code Ch. 509

Violation Types

Entity Details

Entity

data brokers

Also known as: Data Brokers

Industry

Data Broker

Official Sources

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