Texas Attorney General Ken Paxton initiated an investigation into multiple car manufacturers for allegedly collecting drivers' data without consent and selling it to third parties, including insurance providers. The investigation, authorized under the Texas Deceptive Trade Practices – Consumer Protection Act, requires manufacturers and data purchasers to produce documents related to their data practices and customer disclosures. The AG highlighted concerns about invasive, non-consensual data collection and sale occurring without consumer knowledge.
Car manufacturers and third-party data buyers are required to produce documents relevant to their data collection and sale practices, including all disclosures provided to customers regarding data use and sharing.
In-house legal teams in the automotive industry or those contracting with car manufacturers should review all customer and vendor agreements for compliance with data privacy disclosure and consent requirements. Ensure contracts clearly outline what driver data is collected, how it is used, and all third parties (including insurance providers) with whom data is shared. Verify that valid, informed consumer consent is obtained prior to collecting or selling driver data, and that contracts include transparency obligations and opt-out mechanisms where required. Additionally, review agreements with third-party data buyers to confirm data use is restricted to authorized purposes and proper safeguards are in place.
Entity
Several Car Manufacturers
Industry
Automotive"Attorney General Ken Paxton Opens Investigation into Car Manufacturers’ Collection and Sale of Drivers’ Data"
"June 06, 2024"
"Texas Attorney General Ken Paxton"
"opened an investigation into several car manufacturers"
"several car manufacturers"
"The Texas Deceptive Trade Practices – Consumer Protection Act authorizes the Office of the Attorney General to investigate false, misleading, or deceptive acts or practices."
$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.