Texas Attorney General Ken Paxton initiated an investigation into Drone Nerds, LLC over its partnership with CCP-affiliated Anzu Robotics, which markets drones with concealed surveillance capabilities and unauthorized data collection risks. Drone Nerds is accused of deceiving Texas consumers by misrepresenting Anzu’s ties to China and falsely claiming the drones are U.S.-based with secure privacy practices. The investigation is being conducted under the Texas Deceptive Trade Practices Act, with a Civil Investigative Demand issued to gather evidence of consumer deception and privacy violations.
In-house legal teams should review vendor agreements for technology and physical products with data collection capabilities to mandate full disclosure of all corporate affiliations, including ties to foreign adversaries like the CCP. Contracts must require accurate, verifiable representations of data collection practices, security measures, and data storage jurisdictions, with specific indemnification for deceptive privacy or security claims. Teams should also add clauses requiring immediate notice of ownership changes, prohibitions on unauthorized data sharing with foreign governments, and audit rights to verify compliance with privacy representations.
Entity
Drone Nerds, LLC
Industry
Technology"Drone Nerds, LLC (“Drone Nerds”)"
"Attorney General Ken Paxton"
"opened an investigation"
"Texas Deceptive Trade Practices Act (“DTPA”)"
"unauthorized data collection, surveillance capabilities, and potential access by the Chinese government"
"falsely represents to consumers that Anzu Robotics’ Raptor drone is “headquartered and operated within the United States, giving you the peace of mind that your solution is delivered by your neighbors.”"
Texas Attorney General Ken Paxton and the U.S. Department of Justice secured a settlement with agricultural data broker Agri Stats, Inc. for facilitating the sharing of competitively sensitive information among meat processors, reducing competition and raising prices for chicken, pork, and turkey. Under the settlement, Agri Stats will implement industry-wide changes to its information distribution practices and make monetary payments to participating states. The settlement aims to restore competition in the agriculture industry and lower grocery prices for consumers.
$7.4B
Texas Attorney General Ken Paxton announced the effective date of a $7.4 billion settlement with Purdue Pharma, Inc. and the Sackler family over their role in fueling the opioid crisis. Texas will receive $286.5 million from the settlement, bringing the state’s total opioid recovery funds to over $3 billion. The settlement includes permanent bans on Sackler opioid sales in the U.S., public release of 30 million company documents, and distribution of funds for addiction treatment and prevention over 15 years.
Texas Attorney General Ken Paxton reached an agreement with Samsung Electronics America, Inc. to stop collecting Automated Content Recognition (ACR) data from smart TVs without consumers' express consent. Samsung must update its smart TVs to provide clear and conspicuous disclosures and obtain consent before any data collection, ensuring Texans are informed and in control of their viewing data.
Texas Attorney General Ken Paxton filed a lawsuit against Shein US Services LLC for selling toxic products and exposing consumers' personal data to the Chinese Communist Party. The lawsuit seeks monetary penalties under the Texas Deceptive Trade Practices Act. This action is part of a broader effort to protect Texans from health risks and CCP influence.
Texas Attorney General Ken Paxton filed a lawsuit against PDD Holdings, Inc. and WhaleCo Inc., doing business as Temu, for deceptive marketing and unlawful covert harvesting of Texans’ personal data that was exposed to the Chinese Communist Party. The suit alleges Temu functions as a 'trojan horse' e-commerce app that bypasses security protocols to create a backdoor into users’ private data, which is stored on servers in China. The lawsuit seeks monetary relief under the Texas Deceptive Trade Practices Act, including up to $10,000 per violation and up to $250,000 per violation targeting consumers aged 65 or older.
Texas Attorney General Ken Paxton filed a lawsuit against Temu (PDD Holdings, Inc. and WhaleCo Inc.) for deceptive marketing practices and illegally harvesting Texans' personal data, which was then exposed to the Chinese Communist Party. The suit seeks monetary damages under the Texas Deceptive Trade Practices Act, with potential penalties of up to $10,000 per violation and higher for seniors. This is part of a broader effort to hold CCP-aligned companies accountable.