States are continuing to pass privacy laws at a rapid-fire pace; with the passage of the Texas Data Privacy and Security Act (TDPSA), the number of state laws has jumped to double digits. (For context, at the beginning of 2021, only California had a comprehensive data privacy law.)
For businesses that may need to comply with the TDPSA, here are some quick facts to get you oriented.
The Texas Data Privacy and Security Act will go into effect on July 1, 2024.
The TDPSA defines its scope differently than other privacy laws. It applies to for-profit businesses that (1) do business in Texas (or produce products/services that are targeted to Texas residents), (2) process and/or sell personal data, and (3) are not “small businesses” as described by the U.S. Small Business Administration.
The SBA’s definition of a small business is a little tricky, as it varies widely by industry. To determine whether your business qualifies, you can find your industry on this table, or use the SBA’s lookup tool.
Importantly, the TDPSA prohibits even small businesses from selling sensitive data without a consumer’s consent.
Texas consumers now have the following privacy rights:
The TDPSA defines “personal data” along the same lines as other state privacy laws, i.e. any information “that is linked or reasonably linkable to an identified or identifiable individual.” It does does not include deidentified data or publicly available information.
This definition covers more information than some might think, from IP addresses to internet cookies to shopping habits.
The Texas Data Privacy and Security Act requires businesses to perform data protection impact assessments for certain types of processing activities. Texas requires a DPIA required for the following processing activities:
Courts may impose fines of up to $7,500 per violation per consumer.
The Texas Data Privacy and Security Act does not grant a private right of action to consumers, meaning they cannot sue a business over alleged violations.
The pace of state privacy legislation is picking up, with many states likely to pass their own laws in the near future. With each new law, compliance becomes a little more complicated to manage, especially for businesses without in-house privacy experts.
TrueVault US helps businesses of all sizes get compliant with privacy laws from across the country with one streamlined platform. Designed by attorneys, TrueVault US is a software solution that guides you at every step of the way, from onboarding vendors to responding to consumer privacy requests.
To learn more about how TrueVault US can help your business, contact our team today.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice. This content is not a substitute for obtaining legal advice from a licensed attorney. The information on this page may be changed without notice and is not guaranteed to be complete, correct or up-to-date, and may not reflect the most current legal developments.