Texas Attorney General Ken Paxton announced an investigation into Chinese AI company DeepSeek for alleged violations of the Texas Data Privacy and Security Act, citing concerns over the company’s privacy practices and ties to the Chinese Communist Party. The AG also notified DeepSeek of the alleged violations, issued a ban on DeepSeek’s platform on all Office of the Attorney General devices, and sent third-party Civil Investigative Demands to Google and Apple for documentation related to the DeepSeek app. The investigation stems from allegations that DeepSeek acts as a proxy for the CCP to steal Texas citizens’ data and undermine U.S. AI dominance.
DeepSeek’s AI platform is banned from all Texas Office of the Attorney General devices effective January 28, 2025. The investigation into the company’s privacy practices and alleged Texas Data Privacy and Security Act violations is ongoing, and no additional remedies have been imposed as of the February 14, 2025 press release date.
In-house legal teams should audit all existing and proposed vendor agreements with AI service providers, particularly those with ties to foreign governments, to ensure alignment with the Texas Data Privacy and Security Act and other state privacy regulations. Key clauses to review include data collection and use limitations, cross-border data transfer restrictions, data security requirements, and prohibitions on unauthorized data sharing with foreign entities. Teams should also add requirements for vendors to provide evidence of compliance with app store submission standards, immediate notice of any privacy-related investigations, and audit rights to verify adherence to privacy and security commitments.
Entity
DeepSeek
Industry
Technology"DeepSeek—a Chinese artificial intelligence (“AI”) company"
"violates the Texas Data Privacy and Security Act"
"steal the data of our citizens"
"over concerns about security"
"announced an investigation into DeepSeek"
"Texas Attorney General Ken Paxton"
$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.