Texas Attorney General Ken Paxton has launched investigations into Character.AI and fourteen other companies, including Reddit, Instagram, and Discord, for potential violations of the SCOPE Act and TDPSA regarding children's privacy and safety. The investigations focus on unauthorized sharing of minors' data and lack of parental controls. No penalties have been imposed yet as the investigations are ongoing.
In-house legal teams should review all vendor and customer agreements, particularly those involving services accessible to minors or handling user-generated content. Focus on clauses governing data sharing, consent mechanisms, age verification, data retention, and breach notification. Specific attention is needed for any provisions allowing the collection or sharing of data from individuals under 18. Contracts may require amendments to include explicit parental consent requirements, robust age-gating, restrictions on minor data profiling, and enhanced data security protocols for child-related information. Data processing addendums with third parties should also be audited to ensure compliance with child data protection standards.
Entity
Character.AI
Industry
Technology$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.
The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.