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TX AG Investigates DeepSeek for Texas Data Privacy Act Violations

DeepSeekFebruary 14, 2025Texas Attorney General

Summary

Texas Attorney General Ken Paxton announced an investigation into Chinese AI company DeepSeek for alleged violations of the Texas Data Privacy and Security Act, citing concerns over the company’s privacy practices and ties to the Chinese Communist Party. The AG also notified DeepSeek of the alleged violations, issued a ban on DeepSeek’s platform on all Office of the Attorney General devices, and sent third-party Civil Investigative Demands to Google and Apple for documentation related to the DeepSeek app. The investigation stems from allegations that DeepSeek acts as a proxy for the CCP to steal Texas citizens’ data and undermine U.S. AI dominance.

Remedy

DeepSeek’s AI platform is banned from all Texas Office of the Attorney General devices effective January 28, 2025. The investigation into the company’s privacy practices and alleged Texas Data Privacy and Security Act violations is ongoing, and no additional remedies have been imposed as of the February 14, 2025 press release date.

Ban

Contract Impact

In-house legal teams should audit all existing and proposed vendor agreements with AI service providers, particularly those with ties to foreign governments, to ensure alignment with the Texas Data Privacy and Security Act and other state privacy regulations. Key clauses to review include data collection and use limitations, cross-border data transfer restrictions, data security requirements, and prohibitions on unauthorized data sharing with foreign entities. Teams should also add requirements for vendors to provide evidence of compliance with app store submission standards, immediate notice of any privacy-related investigations, and audit rights to verify adherence to privacy and security commitments.

Contract Search Terms

Texas Data Privacy and Security Act complianceAI platform data collection clausescross-border data transfer agreementsforeign entity data sharing termsthird-party app store vendor documentationdata security standards for AI toolsCCP-tied vendor risk clausesCivil Investigative Demand response obligations

Laws Cited

Texas Data Privacy and Security Act

Violation Types

Entity Details

Entity

DeepSeek

Industry

Technology

Official Sources

Source Evidence

Entity Name
"DeepSeek—a Chinese artificial intelligence (“AI”) company"
Laws Cited
"violates the Texas Data Privacy and Security Act"
Violation Types
"steal the data of our citizens"
Violation Types
"over concerns about security"
Event Type
"announced an investigation into DeepSeek"
Jurisdiction
"Texas Attorney General Ken Paxton"

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