Texas Attorney General Ken Paxton initiated an investigation into multiple car manufacturers for allegedly collecting drivers' data without consent and selling it to third parties, including insurance providers. The investigation, authorized under the Texas Deceptive Trade Practices – Consumer Protection Act, requires manufacturers and data purchasers to produce documents related to their data practices and customer disclosures. The AG highlighted concerns about invasive, non-consensual data collection and sale occurring without consumer knowledge.
Car manufacturers and third-party data buyers are required to produce documents relevant to their data collection and sale practices, including all disclosures provided to customers regarding data use and sharing.
In-house legal teams in the automotive industry or those contracting with car manufacturers should review all customer and vendor agreements for compliance with data privacy disclosure and consent requirements. Ensure contracts clearly outline what driver data is collected, how it is used, and all third parties (including insurance providers) with whom data is shared. Verify that valid, informed consumer consent is obtained prior to collecting or selling driver data, and that contracts include transparency obligations and opt-out mechanisms where required. Additionally, review agreements with third-party data buyers to confirm data use is restricted to authorized purposes and proper safeguards are in place.
Entity
Several Car Manufacturers
Industry
Automotive"Attorney General Ken Paxton Opens Investigation into Car Manufacturers’ Collection and Sale of Drivers’ Data"
"June 06, 2024"
"Texas Attorney General Ken Paxton"
"opened an investigation into several car manufacturers"
"several car manufacturers"
"The Texas Deceptive Trade Practices – Consumer Protection Act authorizes the Office of the Attorney General to investigate false, misleading, or deceptive acts or practices."
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.
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.
$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.