Texas AG Expands Privacy Investigations into Major Tech Platforms, Targeting Data Collection from Minors

The Texas Attorney General’s office has intensified its data privacy enforcement efforts by launching investigations into several technology companies, including Character.AI, Reddit, Instagram, and Discord. These investigations focus on compliance with Texas’s Securing Children Online through Parental Empowerment (SCOPE) Act and the Texas Data Privacy and Security Act (TDPSA), marking a significant escalation in the state’s digital privacy oversight.

The enforcement expansion follows Texas’s $1.4 billion settlement with Meta earlier this year over violations of the Capture or Use of Biometric Identifier Act (CUBI) and the Texas Deceptive Trade Practices Act. The settlement addressed Facebook’s “Tag Suggestions” feature, which collected biometric identifiers without user consent, representing the largest privacy-related settlement obtained by a single state. Facebook began phasing out this feature in 2019, which automatically identified people in uploaded photos using facial recognition technology.

The current investigations examine how platforms commonly used by minors handle personal data, specifically whether companies share or sell such information without parental consent. Under the SCOPE Act, digital service providers must obtain permission from parents or legal guardians before disclosing minors’ personal information and provide tools for parents to manage privacy settings. The legislation is part of a broader national trend toward enhanced protection of children’s digital privacy rights.

In October, the office filed a lawsuit against TikTok for alleged SCOPE Act violations, claiming the platform collected personal data from minors without proper consent and failed to provide adequate parental controls. This action follows similar investigations into social media platforms’ data collection practices affecting young users.

The Texas AG’s Data Privacy and Security Initiative, established in June 2024, coordinates these enforcement actions. The initiative has become one of the largest privacy-focused teams among state attorney general offices, enforcing the TDPSA, CUBI, and regulations against deceptive business practices. The office recently pursued action against General Motors regarding alleged unauthorized collection and sale of driving data, demonstrating the initiative’s broad scope beyond social media platforms.

The TDPSA’s lack of applicability thresholds means businesses of all sizes must comply with Texas’s privacy requirements, regardless of their scale of operations. This comprehensive approach to privacy regulation has positioned Texas as a vanguard state in digital privacy enforcement, similar to other strict privacy laws like the Illinois Biometric Information Privacy Act (BIPA) and the California Consumer Privacy Act (CCPA).

Sources: Texas Attorney General, JD Supra

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December 13, 2024 – by the ID Tech Editorial Team