Texas Attorney General Ken Paxton launched investigations into Character.AI and 14 other companies, including Reddit, Instagram, and Discord, over potential violations of children’s privacy and safety laws. The investigations focus on compliance with the SCOPE Act and Texas Data Privacy and Security Act (TDPSA), which require parental consent for sharing minors’ data and mandate notice and consent requirements for children’s personal information. No fines or remedies have been imposed as the investigations are ongoing.
In-house legal teams should review all vendor agreements involving digital services, social media platforms, AI products, and any services collecting data from minors to ensure compliance with the SCOPE Act and TDPSA. Key clauses to update include those governing parental consent for collection, sharing, or sale of minors’ personal identifying information, requirements to provide parents with privacy control tools, and notice and consent provisions for processing minors’ data. Teams should also verify that vendors prohibit unauthorized sharing or disclosure of children’s data, and include audit rights to confirm adherence to Texas children’s privacy laws. Additionally, agreements with AI product vendors should specifically address compliance with minor data protection requirements under applicable state laws.
Entity
Character.AI, Reddit, Instagram, Discord, and 14 other companies
Industry
Social Media"Character.AI and fourteen other companies including Reddit, Instagram, and Discord"
"Securing Children Online through Parental Empowerment (“SCOPE”) Act"
"Texas Data Privacy and Security Act (“TDPSA”)"
"prohibits digital service providers from sharing, disclosing, or selling a minor’s personal identifying information without permission from the child’s parent or legal guardian"
"TDPSA imposes strict notice and consent requirements on companies that collect and use minors’ personal data"
"launched investigations into Character.AI and fourteen other companies"
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.
Texas Attorney General Ken Paxton announced an agreement with Plum Organics requiring stronger testing and limits for heavy metals in covered baby food products, along with publicly accessible testing results. The release does not state a monetary penalty; the agreement follows an ongoing investigation into baby food manufacturers.
Texas Attorney General Ken Paxton opened an investigation into Blue Cross and Blue Shield of Texas, its parent Health Care Service Corporation, and related entities over alleged denials or delays of urgent and medically necessary care and potentially burdensome prior authorization requirements. The investigation is ongoing; the Attorney General issued a Civil Investigative Demand to obtain information and assess potential violations of Texas law.
Texas Attorney General Ken Paxton issued a consumer alert warning Texas businesses and nonprofits about a surge of demand letters alleging California Invasion of Privacy Act (CIPA) violations based on common website technologies such as cookies, pixels, and analytics tools. The AG cautions that some letters may exaggerate or misrepresent violations and may be fraudulent, noting serial CIPA plaintiff Vivek Shah has been declared a vexatious litigant. Recipients are advised not to pay or respond directly, to consult privacy counsel, and to report suspected fraud to the Consumer Protection Division.
A Texas state district court (Judge Cory Liu) has found TikTok liable for lying to parents about the safety of its platform and for exposing children to inappropriate and explicit content, making Texas the first state in the nation to hold TikTok liable on these claims. The court found that although TikTok claimed it would remove graphic videos depicting drugs, nudity, alcohol, injuries, and profanity, such videos remained accessible to minors, even under 'Restricted Mode.' No penalty has been imposed yet; Attorney General Paxton will proceed to trial, expected next month, where relief and penalties will be determined.
Texas Attorney General Ken Paxton opened an investigation into TriWest Healthcare Alliance Corp., the U.S. government contractor that administers the VA Community Care Network and the Defense Health Agency's TRICARE West Region, over reports that it wrongfully denied health care claims by falsely treating insureds as having other health insurance (OHI). The OAG has issued Civil Investigative Demands (CIDs) and plans to interview consumers and employees to determine whether TriWest violated the Texas Deceptive Trade Practices Act. No findings or penalties have been imposed yet.