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
Technology$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.
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.