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Published on June 18, 2024
Texas Attorney General Ken Paxton Enforces Data Broker Registration, Issues Notices for Non-ComplianceSource: Texas Attorney General's Office

Texas Attorney General Ken Paxton has taken a definitive stance on consumer privacy, issuing notifications to upwards of a hundred companies accused of not adhering to the latest data broker regulations in Texas. These firms have apparently neglected their requirement to register with the state as mandated by the Texas Data Broker Law, which came into effect earlier this year.

Detailing the provisions, Chapter 509 of the Texas Business and Commerce Code clearly sets out the responsibilities of data brokers, which include the purchase, sale, trade, and management of individual's personal data. Under the new law, these companies were to register with the Texas Secretary of State by the deadline of March 1, 202 Programmed with a penalty for those who fail to comply, the law also insists on implementation of sufficient safeguards to protect the data of Texans.

Underscoring the importance of this regulatory move, Paxton stated, "Data brokers collect and store sensitive personal data, such as financial, healthcare, and geolocation information." He continued, "My office takes Texans’ privacy seriously. We are taking action to ensure that companies comply with our new data broker law, as well as other Texas consumer protection and privacy laws," as per the Texas Attorney General's News Releases.

In an effort to enforce compliance and safeguard consumer information, AG Paxton has catalyzed the formation of a specialized enforcement team within the Consumer Protection Division of the OAG. This team is tasked with ensuring companies honor the cumulated Texas privacy laws and take the necessary steps to secure the personal data of individuals within the state borders. The intensity of this enforcement strategy reflects a broader initiative to hold data brokers accountable for the personal information they process and trade in the digital economy.

Austin-Real Estate & Development