Texas Attorney General Ken Paxton announced legal action against several Chinese companies, including TP-Link, Alibaba, and CapCut, for violating the Texas Data Privacy and Security Act (TDPSA). The companies have been given 30 days to comply with requirements to disclose data processing, allow consumers to opt out of data collection, and enable data deletion. Failure to comply will result in further legal action to protect Texans' privacy rights and prevent data from being accessed by the Chinese Communist Party.
The companies must comply with TDPSA within 30 days by disclosing their data processing activities, providing consumers with the ability to opt out of data collection, and enabling consumers to delete their personal data. No specific penalties have been imposed yet, but non-compliance will trigger additional legal action.
In-house legal teams should review all vendor, customer, and data processing agreements (including DPAs) for clauses governing data processing transparency, consumer rights (opt-out and deletion), and restrictions on data sharing with foreign governments. Specific clauses to audit include data processing descriptions, privacy policy attachments, consumer rights procedures, and data transfer limitations. Contracts may need amendments to explicitly comply with TDPSA requirements, implement verifiable opt-out and deletion mechanisms, and prohibit data transfers to entities aligned with the Chinese Communist Party or other foreign adversaries.
Entity
TP-Link, Alibaba, CapCut, and several other Chinese and Chinese Communist Party (“CCP”) aligned companies
Also known as: TP-Link, Alibaba, CapCut
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.