Texas is stepping up its enforcement of privacy laws, ensuring that companies operating within its borders adhere to stringent regulations designed to protect the personal information of its residents. The Texas Attorney General’s (AG) office has recently announced the formation of a dedicated task force within its Consumer Protection Division, signaling a new era of privacy law enforcement in the state. This task force will focus on enforcing the Texas Data Privacy and Security Act (TDPSA) and several other privacy-related laws, making it clear that Texas is serious about safeguarding consumer data. 

This blog will explore why Texas is intensifying its enforcement efforts, the landscape of its privacy laws, and what this means for businesses operating in the state. Understanding these developments is crucial for companies that handle personal data, as non-compliance could lead to significant legal and financial repercussions. 

The Evolving Landscape of Texas Privacy Laws 

Texas has been gradually building a comprehensive framework of privacy laws, preparing the ground for rigorous enforcement. The recent developments include the enactment and enforcement of several key laws: 

• Capture or Use of Biometric Information (CUBI): Texas was the first state to regulate the collection, use, and retention of biometric data with the passage of CUBI in 2008. Despite being on the books for over a decade, enforcement only gained momentum in the past two years, with notable lawsuits against tech giants like Meta and Google for alleged violations. 

• Texas Data Broker Law: Passed in 2023 and fully effective as of March 2024, this law requires data brokers to register with the state and meet specific security and notice obligations. The law’s broad scope captures any entity that processes or transfers personal data, setting a high bar for compliance. 

• Texas Data Privacy and Security Act (TDPSA): Taking effect on July 1, 2024, the TDPSA is the state’s most comprehensive privacy law to date. It imposes strict requirements on businesses regarding the processing, sale, and management of personal data, with significant penalties for non-compliance. 

Why Texas Is Stepping Up Enforcement 

The Texas Attorney General’s office has made it clear that these laws are not merely symbolic. Several factors are driving this increased focus on privacy enforcement: 

• Protection of Consumer Rights

  • The primary motivation behind ramping up enforcement is the protection of consumer privacy rights. With the rise in data breaches and unauthorized use of personal information, the Texas AG is determined to ensure that residents’ privacy is respected and safeguarded. 

• Response to Technological Advances

  • As technology evolves, so do the methods companies use to collect and exploit personal data. The Texas AG has expressed concern over the use of artificial intelligence and other technologies that may pose risks to consumer privacy. The new enforcement efforts aim to curb any misuse of these technologies. 

• Legal Precedents and Industry Compliance

  • High-profile lawsuits against companies like Meta and Google have set a precedent, demonstrating the Texas AG’s willingness to take on major corporations. These cases serve as a warning to other businesses that non-compliance with Texas privacy laws will not be tolerated. 

Key Components of Texas Privacy Laws 

Businesses operating in Texas must be aware of the specific requirements of the state’s privacy laws to ensure compliance. Some of the critical components include: 

• Notice and Consent: Companies must provide clear notice to consumers before collecting biometric data or other sensitive personal information and obtain their consent. 

• Data Broker Registration: Entities that meet the criteria of a data broker must register with the Texas Secretary of State and implement comprehensive security measures. 

• Consumer Rights Under TDPSA: 

• • Access, edit, and delete personal data held by a company. 

• • Opt-out of the sale of personal data and targeted advertising. 

• • Receive specific notices about the sale of sensitive or biometric data. 

• Penalties for Non-Compliance: The TDPSA imposes a maximum civil penalty of $7,500 per violation, with the potential for injunctive relief. 

The Role of the New Privacy Task Force  

The newly established privacy task force in the Texas AG’s office is set to play a pivotal role in enforcing these laws. This team, touted as the largest of its kind in the United States, will focus on: 

• Enforcement of Multiple Laws: The task force will enforce not only the TDPSA but also the CUBI, the Texas Data Broker Law, and other state and federal privacy laws, including the Children’s Online Privacy Protection Act (COPPA) and the Health Insurance Portability and Accountability Act (HIPAA). 

• Aggressive Legal Action: The task force is expected to aggressively pursue legal action against companies that fail to comply with Texas privacy laws. This includes seeking penalties, injunctions, and other remedies to protect consumer privacy. 

• Guidance and Compliance Monitoring: The Texas AG’s office will likely issue guidance and monitor compliance with the TDPSA and related laws, providing businesses with the information needed to adhere to the new regulations. 

Staying Ahead of Compliance Challenges 

The Texas Attorney General’s office is making it abundantly clear that it will not tolerate any lapses in privacy compliance. The formation of a dedicated task force and the recent flurry of legal actions underscore the state’s commitment to protecting consumer privacy. For businesses, this means that staying ahead of compliance challenges is not just advisable—it is essential. 

Companies operating in Texas or handling data linked to Texas residents must take proactive steps to ensure they meet the state’s privacy law requirements. This includes reviewing data collection practices, updating privacy notices, obtaining necessary consent, and registering as data brokers if applicable. By doing so, businesses can avoid the costly penalties and legal battles that come with non-compliance.  

As Texas continues to strengthen its privacy laws and enforcement efforts, companies should remain vigilant, seek expert legal counsel, and stay informed about the latest developments in this rapidly evolving area of law.