Underneath the banner of strengthening client knowledge safety, Texas is ramping up enforcement of its complete knowledge privateness act, sending a nationwide sign that Texas is critical about safeguarding the private knowledge of customers.
Texas Information Privateness and Safety Act
The Texas Information Privateness and Safety Act (the “Act”), efficient as of July 1, 2024, provides protections for client private knowledge, which incorporates any info 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, right, delete, and acquire copies of their private knowledge.[2] It additionally requires companies to implement knowledge safety measures, restrict knowledge assortment to needed info, and supply clear notices about knowledge processing, gross sales, and focused promoting, with the flexibility for customers to choose out of those actions, amongst different measures.[3] You may learn extra in regards to the full scope and necessities of the Act in considered one of our earlier blogs.
Current Enforcement Actions
Pursuant to the Act, the Texas Lawyer Common has just lately issued violation notices alleging the sharing of delicate person knowledge with out correct discover or consent. These allegations reveal widespread areas of concern which the Lawyer Common is focusing on, reminiscent of:
- Inappropriate Information Sharing: The Texas Lawyer Common leveled accusations that inappropriate sharing of delicate person knowledge, reminiscent of location and car info, had occurred with out sufficiently clear consent from customers in place. Particularly, the Texas Lawyer Common indicated that such practices may expose customers to privateness dangers with out their knowledgeable consent.
- Lack of Enough Shopper Consent: The Texas Lawyer Common alleged failures to offer customers with “moderately clear discover” or processes to acquire a “clear affirmative act” of client consent, as required by the Act.
- Deficiencies in Privateness Discover as to Assortment of Private Information: The Texas Lawyer Common cited failures to tell customers in regards to the classes of non-public knowledge that may be collected, purportedly leaving customers unaware of the scope and nature of non-public info being gathered.
- Deficiencies in Privateness Notices as to Shopper Rights: The Texas Lawyer Common cited considerations that regulated events weren’t offering sufficient discover to customers of their rights below the Act, not directly limiting client management over their private info.
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 think about whether or not they’re taking part in practices just like these below scrutiny.
If in case you have 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.
