Texas Privacy on the Rise: Understanding the Texas Consumer Privacy Act and Texas Privacy Protection Act
Texas Privacy on the Rise: Understanding the Texas Consumer Privacy Act and Texas Privacy Protection Act
Texas is making strides in data privacy, following the lead of states like California, Colorado, and Washington. Two key legislative proposals—House Bill No. 4518, the Texas Consumer Privacy Act (Texas CPA), and House Bill No. 4380, the Texas Privacy Protection Act (TPPA)—seek to regulate the collection, processing, and protection of personal identifying information (PII) for Texas residents. Legal professionals must understand these emerging frameworks to guide clients effectively.
Texas Consumer Privacy Act (Texas CPA)
The Texas CPA primarily targets larger corporations meeting one or more of the following criteria:
Annual gross revenue exceeding $25 million.
Deriving 50% or more of annual revenue from selling consumer personal information.
Engaging in the buying, selling, or sharing of personal information of 50,000 or more consumers, households, or devices for commercial purposes.
If enacted, the Texas CPA would go into effect September 1, 2020. Civil penalties include:
$2,500 per violation.
$7,500 per violation if the breach is deemed intentional.
The law emphasizes corporate responsibility for consumer privacy and imposes substantial financial risks for non-compliance.
Texas Privacy Protection Act (TPPA)
The TPPA focuses on data processing and retention practices, including:
Explicit consent for processing personal identifying information.
Development and maintenance of a robust data security and accountability program.
Requirement to stop processing PII within 39 days of account closure.
The TPPA would take effect September 1, 2019, with civil penalties of $10,000 per violation, capped at a total of $1 million. This legislation stresses operational accountability for data handling and timely response to consumer privacy rights.
Legal Implications for Lawyers
Both bills represent a significant step toward comprehensive state-level privacy regulation in the U.S. Legal advisors should:
Review client data collection, storage, and processing practices.
Draft or revise consent agreements, privacy policies, and data security protocols.
Advise on breach response procedures and regulatory compliance programs.
Assess financial and reputational risks associated with potential violations.
Understanding these bills early allows lawyers to proactively guide businesses through compliance and avoid costly penalties.
Conclusion
Texas is joining a growing list of U.S. states with serious consumer privacy legislation. The Texas CPA and TPPA are poised to reshape how companies handle personal data, focusing on corporate accountability, consumer consent, and security. Legal professionals must be prepared to assist clients in navigating these new regulations, ensuring compliance and protecting both consumer rights and business interests.
