Texas Attorney General Ken Paxton issued warning letters to over 100 companies informing them of their apparent failure to register as data brokers with the Texas Secretary of State by the March 1, 2024 deadline required by Chapter 509 of the Texas Business and Commerce Code. The notification follows the establishment of a specialized privacy enforcement team within the AG’s Consumer Protection Division to enforce Texas privacy laws. The letters alert companies to potential penalties for noncompliance with registration and data safeguard requirements under Texas’s Data Broker Law.
The notified companies are required to cure their noncompliance by registering as data brokers with the Texas Secretary of State and implementing required data safeguards to avoid statutory penalties for violation of Texas’s Data Broker Law. No monetary penalties or other formal remedies have been imposed as of the date of the warning letters.
In-house legal teams should review all vendor agreements with entities that buy, sell, trade, or process consumer personal data to confirm whether such vendors are required to register as data brokers under Texas law. Teams should add clauses requiring vendors to certify compliance with Texas Data Broker Law registration requirements, implement adequate data safeguards, and notify the company immediately of any enforcement actions or noncompliance notices from the Texas Attorney General. Additionally, contracts should include audit rights to verify vendor registration status and data security practices, as well as indemnification clauses for penalties arising from vendor noncompliance with Texas privacy laws.
Entity
Multiple Unnamed Data Broker Companies
Industry
Data Broker"over one hundred companies"
"Chapter 509 of the Texas Business and Commerce Code"
"Texas’s newly enacted Data Broker Law"
"apparent failure to register as data brokers with the Texas Secretary of State as required by Texas’s newly enacted Data Broker Law"
"issued letters notifying over one hundred companies of their apparent failure to comply"
"Texas Attorney General Ken Paxton"
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.