Beneath the banner of strengthening shopper knowledge safety, Texas is ramping up enforcement of its complete knowledge privateness act, sending a nationwide sign that Texas is severe about safeguarding the private knowledge of customers.
Texas Knowledge Privateness and Safety Act
The Texas Knowledge Privateness and Safety Act (the “Act”), efficient as of July 1, 2024, provides protections for shopper private knowledge, which incorporates any data that’s linked or moderately linkable to an recognized or identifiable particular person.[1] Particularly, the Act grants customers with a set of rights, together with to entry, appropriate, delete, and procure copies of their private knowledge.[2] It additionally requires companies to implement knowledge safety measures, restrict knowledge assortment to essential data, and supply clear notices about knowledge processing, gross sales, and focused promoting, with the power for customers to choose out of those actions, amongst different measures.[3] You’ll be able to learn extra in regards to the full scope and necessities of the Act in one in every of our earlier blogs.
Current Enforcement Actions
Pursuant to the Act, the Texas Lawyer Basic has lately issued violation notices alleging the sharing of delicate person knowledge with out correct discover or consent. These allegations reveal frequent areas of concern which the Lawyer Basic is focusing on, corresponding to:
- Inappropriate Knowledge Sharing: The Texas Lawyer Basic leveled accusations that inappropriate sharing of delicate person knowledge, corresponding to location and automobile data, had occurred with out sufficiently clear consent from customers in place. Specifically, the Texas Lawyer Basic indicated that such practices might expose customers to privateness dangers with out their knowledgeable consent.
- Lack of Enough Shopper Consent: The Texas Lawyer Basic alleged failures to offer customers with “moderately clear discover” or processes to acquire a “clear affirmative act” of shopper consent, as required by the Act.
- Deficiencies in Privateness Discover as to Assortment of Private Knowledge: The Texas Lawyer Basic cited failures to tell customers in regards to the classes of non-public knowledge that might be collected, purportedly leaving customers unaware of the scope and nature of non-public data being gathered.
- Deficiencies in Privateness Notices as to Shopper Rights: The Texas Lawyer Basic cited considerations that regulated events weren’t offering enough discover to customers of their rights underneath the Act, not directly limiting shopper management over their private data.
These enforcement actions underscore the significance of strict compliance with the Act, even when knowledge assortment practices are transparently disclosed to customers, amongst different measures. Companies working in Texas ought to assess whether or not the Act applies to their actions, guarantee their operations align with the Act’s limitations, and contemplate whether or not they’re collaborating in practices much like these underneath scrutiny.
When you’ve got any questions in regards to the Act or its influence on you or your group’s on-line actions, please contact a member of the Sheppard Mullin Healthcare Staff.
FOOTNOTES
[1] Tex. Bus. & Com. Code § 541.001(d).
[2] Tex. Bus. & Com. Code § 541.051.
[3] Tex. Bus. & Com. Code § 541.101, et seq.
