Texas Attorney General Ken Paxton announced an investigation into Chinese AI company DeepSeek for alleged violations of the Texas Data Privacy and Security Act, citing concerns over the company’s privacy practices and ties to the Chinese Communist Party. The AG also notified DeepSeek of the alleged violations, issued a ban on DeepSeek’s platform on all Office of the Attorney General devices, and sent third-party Civil Investigative Demands to Google and Apple for documentation related to the DeepSeek app. The investigation stems from allegations that DeepSeek acts as a proxy for the CCP to steal Texas citizens’ data and undermine U.S. AI dominance.
DeepSeek’s AI platform is banned from all Texas Office of the Attorney General devices effective January 28, 2025. The investigation into the company’s privacy practices and alleged Texas Data Privacy and Security Act violations is ongoing, and no additional remedies have been imposed as of the February 14, 2025 press release date.
In-house legal teams should audit all existing and proposed vendor agreements with AI service providers, particularly those with ties to foreign governments, to ensure alignment with the Texas Data Privacy and Security Act and other state privacy regulations. Key clauses to review include data collection and use limitations, cross-border data transfer restrictions, data security requirements, and prohibitions on unauthorized data sharing with foreign entities. Teams should also add requirements for vendors to provide evidence of compliance with app store submission standards, immediate notice of any privacy-related investigations, and audit rights to verify adherence to privacy and security commitments.
Entity
DeepSeek
Industry
Technology"DeepSeek—a Chinese artificial intelligence (“AI”) company"
"violates the Texas Data Privacy and Security Act"
"steal the data of our citizens"
"over concerns about security"
"announced an investigation into DeepSeek"
"Texas Attorney General Ken Paxton"
$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.