Austin, Texas — Texas has officially joined the ranks of states with data privacy regulations, enacting the Texas Data Privacy and Security Act (TDPSA) as of July 1. This new legislation reflects a growing recognition of the importance of consumer privacy, especially in the absence of comprehensive federal laws.
The TDPSA aligns closely with the European Union’s General Data Protection Regulation (GDPR), which is widely regarded as a benchmark for privacy protections globally. While Texas is not the first state to implement such measures—California pioneered this movement with its California Consumer Privacy Act—this new law reinforces the trend of states taking initiative in protecting residents’ data.
Under the TDPSA, Texas residents are granted specific rights concerning their personal data. They can inquire about the kind of data collected about them, correct any inaccuracies, and request deletion of that information. Starting in January 2025, individuals will also have the option to opt out of having their data used for targeted advertising, enhancing consumers’ control over their personal information.
Texas businesses face new obligations under this law. Companies identified as “controllers,” which determine how and why consumer data is processed, must limit data collection to only what is necessary for business transactions. They must implement strong data security measures and refrain from discriminatory practices based on consumer data. The collection of “sensitive data” will require explicit consent. However, small businesses are exempt from certain provisions unless they sell sensitive consumer data, although they may still face penalties for unauthorized practices.
A critical aspect of compliance with the TDPSA includes the development of privacy notices and conducting risk assessments. Businesses must provide clear information on what data they collect, how it will be utilized, and to whom it will be shared. Risk assessments, similar to those required by other state laws, are essential for helping entities identify and mitigate potential threats to privacy, making resource allocation more efficient.
As Texas implements these new regulations, multistate companies will need to navigate a complex landscape of varying state laws to ensure compliance. Organizations operating in multiple states face unique challenges, as they must adapt their practices to meet diverse legal requirements while maintaining consumer trust.
The TDPSA marks a significant step for Texas in enhancing data privacy and protection for its residents. As states continue to explore privacy regulations, Texas’s legislation could serve as a model or impetus for further developments across the nation.
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