Texas Attorney General Ken Paxton issued warning letters to over 100 companies informing them of their apparent failure to register as data brokers with the Texas Secretary of State by the March 1, 2024 deadline required by Chapter 509 of the Texas Business and Commerce Code. The notification follows the establishment of a specialized privacy enforcement team within the AG’s Consumer Protection Division to enforce Texas privacy laws. The letters alert companies to potential penalties for noncompliance with registration and data safeguard requirements under Texas’s Data Broker Law.
The notified companies are required to cure their noncompliance by registering as data brokers with the Texas Secretary of State and implementing required data safeguards to avoid statutory penalties for violation of Texas’s Data Broker Law. No monetary penalties or other formal remedies have been imposed as of the date of the warning letters.
In-house legal teams should review all vendor agreements with entities that buy, sell, trade, or process consumer personal data to confirm whether such vendors are required to register as data brokers under Texas law. Teams should add clauses requiring vendors to certify compliance with Texas Data Broker Law registration requirements, implement adequate data safeguards, and notify the company immediately of any enforcement actions or noncompliance notices from the Texas Attorney General. Additionally, contracts should include audit rights to verify vendor registration status and data security practices, as well as indemnification clauses for penalties arising from vendor noncompliance with Texas privacy laws.
Entity
Multiple Unnamed Data Broker Companies
Industry
Data Broker"over one hundred companies"
"Chapter 509 of the Texas Business and Commerce Code"
"Texas’s newly enacted Data Broker Law"
"apparent failure to register as data brokers with the Texas Secretary of State as required by Texas’s newly enacted Data Broker Law"
"issued letters notifying over one hundred companies of their apparent failure to comply"
"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.