Texas Attorney General Ken Paxton sent notification letters to over 100 companies for failing to register as data brokers under Texas Business and Commerce Code Chapter 509, which requires registration by March 1, 2024, and implementation of data safeguards. This action is part of an initiative to enforce privacy laws and protect consumer data.
Companies must register with the Texas Secretary of State and comply with data safeguard requirements; failure may result in penalties under the law.
In-house legal teams should review all vendor, customer, and data processing agreements where the counterparty may be classified as a data broker under Texas law. Specifically examine clauses addressing data broker registration status, data security safeguards, consumer privacy obligations, and compliance with Texas Business and Commerce Code Chapter 509. Agreements may require amendments to include representations and warranties regarding registration, mandated implementation of data safeguards, audit rights, and termination provisions for non-compliance. Due diligence on counterparties' data broker status and registration evidence should be integrated into onboarding and renewal processes.
Entity
Multiple Data Brokers
Also known as: Data Brokers
Industry
Data Broker$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.