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TX AG Notifies 100+ Data Brokers of Registration Failures

Multiple Data BrokersJune 18, 2024Texas Attorney General

Summary

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.

Remedy

Companies must register with the Texas Secretary of State and comply with data safeguard requirements; failure may result in penalties under the law.

Contract Impact

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.

Contract Search Terms

data broker registration requirementTexas Business and Commerce Code Chapter 509data safeguards provisiondata broker definition clauseconsumer data protection obligationregistration deadline compliancedata sharing agreement termsprivacy compliance certificationdata processing addendumdata broker status representation

Laws Cited

Texas Business and Commerce Code Chapter 509
Chapter 509

Violation Types

Entity Details

Entity

Multiple Data Brokers

Also known as: Data Brokers

Industry

Data Broker

Official Sources

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