Texas Attorney General Ken Paxton issued a 30-day compliance notice to TP-Link, Alibaba, CapCut, and other CCP-affiliated Chinese companies for violating the Texas Data Privacy and Security Act (TDPSA). The companies are accused of failing to disclose consumer data processing activities, allow opt-out of data collection, and enable consumer data deletion as required by Texas law. If the companies do not comply within 30 days, the Attorney General's office will pursue additional legal action.
The named companies must comply with TDPSA requirements within 30 days, including disclosing consumer data processing activities, allowing consumers to opt out of data collection, and enabling consumers to delete their personal data. No monetary penalties or other remedies are imposed unless the companies fail to cure their violations within the 30-day period.
In-house legal teams should review all vendor agreements with technology companies, especially those with CCP affiliations, to ensure compliance with TDPSA requirements. Key clauses to audit include data processing disclosures, consumer opt-out mechanisms, and data deletion rights. Teams should also add provisions for vendor compliance audits, cure periods for privacy breaches, and restrictions on cross-border data transfers to high-risk jurisdictions. Additionally, contracts should include representations that vendors comply with all applicable Texas privacy laws.
Entity
TP-Link, Alibaba, CapCut, and several other CCP-affiliated Chinese companies
Industry
Technology"TP-Link, Alibaba, CapCut, and several other Chinese and Chinese Communist Party (“CCP”) aligned companies"
"Texas Data Privacy and Security Act (“TDPSA”)"
"The law requires companies to disclose whether they process consumer data, allow consumers to opt out of data collection, and enable consumers to delete their personal data entirely."
"given the CCP-affiliated companies thirty days to comply with Texas’s heightened privacy protections."
"Attorney General Ken Paxton"
"If the companies fail to comply with the TDPSA, additional legal action will be taken."
$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.