Texas Attorney General Signals Enforcement of Data Broker Registration Law
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June 27, 2024
Privacy Plus+
Privacy, Technology and Perspective
This week, let’s highlight the recent issuance of over one hundred notifications to companies accused of violating the new data broker requirements in Texas.
Background
We have written before about the growing trend of data broker regulatory requirements, including Chapter 509 of the Texas Business and Commerce Code, which outlines the duties of data brokers, including the handling of personal data. The law requires data brokers to implement safeguards to protect Texans' data, and imposes penalties for non-compliance. The law also mandated that data brokers register with the Texas Secretary of State by March 1, 2024. You can read our previous post, “Understanding the New Data Broker Registration Laws” by clicking on the following link:
https://www.hoschmorris.com/privacy-plus-news/data-broker-registration-laws
Notices of Noncompliance
Last week, the Office of the Texas Attorney General issued notices of noncompliance to over a hundred companies accused of violating new data broker regulations in Texas. The companies allegedly failed to register with the state as required. You can read more about this latest development by clicking on the following link:
Our Thoughts
In our previous post on these laws, we suggested that “[b]usinesses, particularly those operating in the data brokerage sector, will need to stay informed and adapt to these changing regulations.” The recent actions taken by the Texas Attorney General’s Office underscore this proposition.
The issuance of over a hundred notices of noncompliance serves as a signal to the industry: Texas is serious about enforcing its data broker registration law. Companies operating in Texas must recognize that regulatory oversight is intensifying, and failure to adhere to this law could result in penalties and reputational damage.
For data brokers, this means more than just a cursory compliance check. It requires a thorough understanding of Chapter 509 and the implementation of robust data protection measures. Companies should evaluate their current practices, ensure that they are registered with the Texas Secretary of State, and that they have effective safeguards in place to protect personal data. This is not just a legal obligation but a component of maintaining consumer trust in an era where data privacy is becoming a bipartisan political issue that is increasingly under scrutiny.
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Hosch & Morris, PLLC is a boutique law firm dedicated to data privacy and protection, cybersecurity, the Internet and technology. Open the Future℠.