Texas Attorney General Ken Paxton is taking a hard stance on companies that handle minors' personal data. Paxton has opened investigations into fifteen companies, including social and AI platforms such as Character.AI, Reddit, Instagram, and Discord. The investigations scrutinize the companies' privacy and safety practices for minors under the SCOPE Act and the TDPSA. According to the Texas Attorney General's office, these acts prohibit the sharing or selling of a minor's personal information without parental consent and require companies to equip parents with privacy controls for their children's accounts.
Under Paxton's legal eye, these tech entities are being warned of Texas's stringent data privacy laws. "Technology companies are on notice that my office is vigorously enforcing Texas’s strong data privacy laws," Paxton said, asserting the state's commitment to safeguarding children from potential exploitation and harm. The SCOPE Act bars digital service providers from disclosing a minor's identifying data sans permission from the children's parent or guardian, aimed at amplifying online protection for the young, as per the Texas Attorney General's office.
The recent actions follow a trend of broader enforcement in Texas's data privacy battle, as evidenced by the State AG's lawsuit against TikTok over alleged SCOPE Act violations. Paxton's office isn't new to the courtrooms with tech companies in the hot seat; earlier this year, its major lawsuit against General Motors accused the automaker of illegal surveillance of drivers and misuse of their data. The statement obtained by the Texas Attorney General's office indicates that Texas is spearheading what seems to be the largest state-level data privacy and security initiative to date.
The crackdown on improper handling of personal data has led Texas to victory before. In July, Paxton secured a settlement with Meta, the former Facebook, to the tune of $1.4 billion over the unauthorized use of facial recognition technology. This marked the largest single-state settlement of its kind. These ongoing investigations and legal measures suggest a continued aggressive posture on data privacy, particularly as it relates to minors, from the Texas Attorney General's office.
