USA – TEXAS Trends and Developments Contributed by: Christina Morgan, Jason Blackstone and Matthew Yarbrough, Buchalter LLP
Buchalter LLP 2626 Cole Avenue Suite 300 Dallas Texas 75204 USA Tel: +1 (214) 263 7500 Email: myarbrough@buchalter.com Web: www.buchalter.com
Texas Enacts the Texas Data Privacy and Security Act, Adding to the Patchwork of US Consumer Privacy Laws The Texas Data Privacy and Security Act went into effect on 1 July 2024. As a result, Texas joined a grow - ing number of states that have enacted comprehen - sive consumer privacy laws. Similar to other states, the TDPSA gives consumers rights to: • confirm whether a business is processing the con - sumer’s personal data; • access the personal data collected by the busi - ness in a portable and, to the extent feasible, readily useable format that allows the consumer to transmit personal data to another controller without hindrance; • correct inaccuracies in the consumer’s personal data, taking into account the nature of the personal data and the purposes of the processing of the consumer’s personal data; • delete personal data provided by or obtained about the consumer; and • opt out of the processing of the personal data for purposes of: (i) targeted advertising, (ii) the sale of personal data, or (iii) profiling in furtherance of a decision that produces a legal or similarly signifi - cant effect concerning the consumer. Businesses must honour those rights and cannot dis - criminate against consumers who choose to exercise their rights. Businesses must also disclose certain information in a privacy policy.
Unlike the California Consumer Privacy Act of 2018, the TDPSA does not create a private right of action. Any violations are enforced by the Attorney General. Texas Adopts New Law to Promote Children’s Privacy Texas is one of several states that have enacted laws that impose requirements on app stores and app developers related to the use of mobile apps by minors. The Texas App Store Accountability Act would require app stores to verify user ages at the time of account creation and to obtain parental consent before minors can download apps or make in-app purchases. The Act would help prevent inadvertent privacy violations caused by inaccurate self-reporting. For instance, a child would be unable to put in a fake age to download an app not intended for minors. Texas’s law was scheduled to go into effect on 1 Janu - ary 2026. However, it is currently subject to litigation in the United States District Court for the Western Dis - trict of Texas. On 23 December 2025, a federal judge issued preliminary injunctions preventing the law from taking effect. Uncertain Future for Numerous New Texas AI Laws Texas has passed a number of new laws relating to the use of artificial intelligence, including: • HB 441: Act Relating to the Regulation and Use of AI by Governmental Entities, effective 1 September 2025; • HB 1999: AI Sexual Material Harmful to Minors, effective 1 September 2025;
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