Texas Attorney General Ken Paxton has issued notices to several Chinese companies, including TP-Link, Alibaba, and CapCut, for violating the Texas Data Privacy and Security Act (TDPSA). The companies must comply with TDPSA's requirements to disclose data processing, allow opt-outs, and enable data deletion within 30 days, or face further legal action.
The companies are required to comply with TDPSA by disclosing their data processing activities, providing consumers with the right to opt out of data collection, and enabling consumers to delete their personal data within 30 days.
In-house legal teams should review vendor agreements, customer terms of service, and data processing agreements for compliance with the Texas Data Privacy and Security Act (TDPSA). Key clauses to examine include data processing disclosures, opt-out mechanisms for data sales or sharing, data deletion request procedures, and breach notification requirements. Agreements may need amendments to explicitly incorporate TDPSA obligations, such as providing clear notice of data processing activities, honoring consumer opt-out requests, and establishing processes for data deletion within required timeframes. Additionally, ensure that any sub-processor arrangements or data sharing agreements align with TDPSA standards.
Entity
TP-Link, Alibaba, CapCut
Industry
TechnologyTexas Attorney General Ken Paxton sued Open AI Global, LLC and affiliated entities, alleging that ChatGPT was marketed as safe and reliable without disclosing risks of inaccurate or harmful outputs. The suit also alleges harms to minors and collection of their data without parental oversight; the release states no monetary penalty or specific remedy imposed.
Texas Attorney General Ken Paxton secured an Assurance of Voluntary Compliance with Lululemon USA Inc. after investigating potential PFAS and consumer representations about product safety. The agreement requires the company to maintain supply-chain chemical standards, verify vendor compliance through testing or certifications, and take corrective action for three years; no monetary penalty is stated.
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.
$1.5M
The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.