Consumers Affected
880,000
Texas Attorney General Ken Paxton filed a lawsuit against PowerSchool, a provider of cloud-based services for K-12 schools, following a data breach that exposed the personal and health information of over 880,000 Texas school-aged children and teachers. The breach occurred in December 2024 when a hacker gained administrative access through a subcontractor's account and stole unencrypted data including Social Security numbers, medical details, and disability records. The lawsuit alleges PowerSchool violated Texas law by failing to implement basic security measures and by misleading customers about its security practices.
In-house legal teams should review all vendor agreements with education technology providers, particularly those handling student, children’s, or employee data, to ensure they include explicit requirements for multi-factor authentication, adequate access controls, and data encryption for all sensitive data. Contracts should also mandate compliance with applicable state privacy laws, require vendors to accurately represent their security standards without deceptive marketing claims, and include clear breach notification timelines and subcontractor security obligations. Additionally, teams should verify that vendors are contractually required to adhere to security best practices for protecting health information and student records, and that remedies for security failures are clearly outlined.
Entity
PowerSchool
Industry
Technology"PowerSchool"
"Texas Deceptive Trade Practices Act"
"Identity Theft Enforcement and Protection Act"
"unprecedented data breach exposed the sensitive personal identifying information and protected health information of more than 880,000 Texas school-aged children and teachers"
"failed to implement even the most basic security features, including multi-factor authentication, adequate access controls, and proper data encryption"
"provider of cloud-based services for K-12 schools"
Texas Attorney General Ken Paxton opened an investigation into TriWest Healthcare Alliance Corp., the U.S. government contractor that administers the VA Community Care Network and the Defense Health Agency's TRICARE West Region, over reports that it wrongfully denied health care claims by falsely treating insureds as having other health insurance (OHI). The OAG has issued Civil Investigative Demands (CIDs) and plans to interview consumers and employees to determine whether TriWest violated the Texas Deceptive Trade Practices Act. No findings or penalties have been imposed yet.
Texas Attorney General Ken Paxton sued Amazon.com, Inc. on August 31, 2026, alleging Amazon deceived advertisers by claiming to run second-price auctions while secretly applying hidden surcharges and undisclosed 'soft reserve' prices that pushed winners' costs up by roughly 17% on ordinary days and more than 25% during peak events like Prime Day. The hidden surcharges generated roughly $4.5 billion in additional nationwide revenue in 2024, and more than 18,000 Texas sellers and vendors advertise on the platform. The State brings claims under the Texas Deceptive Trade Practices Act, seeking civil penalties of up to $10,000 per violation, an injunction against inaccurate auction descriptions, and per-auction pricing records for every Texas advertiser; the FTC and a coalition of other states filed a parallel federal action the same day.
$1.0B
Texas Attorney General Ken Paxton secured a historic settlement with Meta Platforms, Inc. requiring Meta to pay over $1 billion and implement significant new safeguards to protect children online. The settlement includes stricter age-assurance measures, a daily two-hour limit for teen users, default disabling of notifications during school hours, hidden likes/reactions, and a nighttime access mode restricting features for children.
Texas Attorney General Ken Paxton launched an industry-wide investigation into companies marketing avocado oil products that may contain undisclosed seed oils. Civil Investigative Demands were issued to Primal Kitchen, Siete Foods, and Chosen Foods, with more companies expected to be investigated for potential violations of the Texas Deceptive Trade Practices Act.
Attorney General Ken Paxton secured settlements with WK Kellogg Co. and General Mills Inc. requiring the removal of synthetic dyes from cereals served in schools. The companies have already removed these dyes from K-12 cereals, with full removal from all products by the end of 2027.
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.