Texas Attorney General Ken Paxton announced legal action against several Chinese companies, including TP-Link, Alibaba, and CapCut, for violating the Texas Data Privacy and Security Act (TDPSA). The companies have been given 30 days to comply with requirements to disclose data processing, allow consumers to opt out of data collection, and enable data deletion. Failure to comply will result in further legal action to protect Texans' privacy rights and prevent data from being accessed by the Chinese Communist Party.
The companies must comply with TDPSA within 30 days by disclosing their data processing activities, providing consumers with the ability to opt out of data collection, and enabling consumers to delete their personal data. No specific penalties have been imposed yet, but non-compliance will trigger additional legal action.
In-house legal teams should review all vendor, customer, and data processing agreements (including DPAs) for clauses governing data processing transparency, consumer rights (opt-out and deletion), and restrictions on data sharing with foreign governments. Specific clauses to audit include data processing descriptions, privacy policy attachments, consumer rights procedures, and data transfer limitations. Contracts may need amendments to explicitly comply with TDPSA requirements, implement verifiable opt-out and deletion mechanisms, and prohibit data transfers to entities aligned with the Chinese Communist Party or other foreign adversaries.
Entity
TP-Link, Alibaba, CapCut, and several other Chinese and Chinese Communist Party (“CCP”) aligned companies
Also known as: TP-Link, Alibaba, CapCut
Industry
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