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HOUSTON — Beginning July 1, 2024, consumers in Texas will gain more control over their personal online data with the implementation of the Texas Data Privacy and Security Act. This law, passed in 2023, is designed to enhance privacy protections for residents.
Key Features of the Texas Data Privacy and Security Act: According to the Texas Tribune, the Texas Data Privacy and Security Act mandates that businesses obtain user consent before processing sensitive personal data. Texans will have the right to access, delete, or stop the collection of their data for targeted advertising or sales purposes.
The law applies to all businesses operating in Texas or providing products or services consumed by Texas residents, with the exception of small businesses as defined by the U.S. Small Business Administration.
Exemptions Include:
- State agencies or political subdivisions
- Financial institutions or data covered by Title V of the Gramm-Leach-Bliley Act
- Healthcare providers already subject to U.S. Department of Health and Human Services privacy rules
- Nonprofit organizations
- Institutions of higher learning
- Electric utilities, power generation companies, or retail electric providers
Consumer Rights Under the Act: Texans will be entitled to:
- Confirm whether a business is processing their personal data and access it
- Correct inaccuracies in their personal data
- Delete personal data provided by or obtained about them
- Opt out of personal data processing for targeted advertising, sales, or profiling for significant decisions affecting them
Businesses must respond to consumer requests regarding their data within 45 days, with possible extensions if communicated to the consumer.
If a business declines a consumer’s request, it must provide a justification and instructions on how to appeal the decision.
Enforcement and Complaint Filing: Earlier this month, the Texas Attorney General’s Office established a team to enforce the new privacy laws. “Any entity abusing or exploiting Texans’ sensitive data will be met with the full force of the law,” stated Texas Attorney General Ken Paxton. “Companies that collect and sell data unauthorizedly, harm consumers financially, or use AI irresponsibly present risks that we take very seriously.”
Consumers can file complaints with the Attorney General’s Office.
The Texas Data Privacy and Security Act represents a significant step towards greater data protection and privacy for Texas residents, ensuring that businesses handle personal data responsibly and transparently.