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What You Need to Know About the Texas Data Privacy Law Taking Effect On July 1st

  • By Farrukh Mushtaq

    Farrukh Mushtaq

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    Farrukh Mushtaq, a digital marketer at PureSquare, possesses a keen interest in cybersecurity and enjoys writing about it. With several years of experience in the digital marketing industry, he brings expertise and passion to his work.

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  • 25 June 2024
  • 7 mins read

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Starting July 1st, 2024, Texans will have extensive control over their personal information owing to the Texas Data Privacy and Security Act (TDPSA). 

This breakthrough measure adds Texas to the expanding national campaign for data privacy rights.

Let's look at the TDPSA's fundamental elements and what they represent for Texas people and businesses.

What Purpose Does This Law Serve to the Texan Civilians?

The law's objective was to hold firms accountable for how they use Texans' data while also protecting the privacy and personal data rights of the state's residents.

The Texas Privacy Act, like other state privacy acts, provides residents with several well-known rights, including the opportunity to:

Verify and gain access to personal information handled by a controller. Identify mistakes in their personal information.

Remove any personal information that the customer provided or that you have learned about them. If possible, obtain a portable, easily usable copy of their personal information.

Refuse to have your personal information processed for profiling, targeted advertising, or data sales.  

While the global opt-out technology provision takes effect on January 1, 2025, businesses will have a somewhat longer grace time to comply with the TDPSA, which enters into effect on July 1, 2024. Businesses will therefore need to be able to recognize universal opt-out signals, such as Global Privacy Control.

On What Type of Businesses Is TDPSA Law Applicable?

One of the most notable distinctions between the TDPSA and other data privacy laws is its applicability. 

The law establishes new requirements rather than applying to companies based on their annual income, amount of data processed, or amount of money earned from the sale of such data.

The TDPSA applies to entities that meet the following requirements:

Transact business in Texas or supply goods and services that Texas residents "consume." Consumed substitutes the word "targeted" in most such acts, therefore it is a new term in this type of legislation that has not gone ignored.

Personal information may be processed or sold.

The United States Small Business Administration (SBA) defines small enterprises differently depending on industry; they are "usually stated in the number of employees or average annual receipts."

The small business clause, which is the first of its kind, may affect the majority if not all of the state's firms.

What Will be the Data Protection Strategies and Violation Penalties for TDPSA?

The Texas Data Protection Act (TDPSA) provides consumer protections while creating obstacles for corporations. 

To reduce these risks, firms should have robust internal controls and select a data controller. Furthermore, worldwide opt-out technologies and cyber insurance are essential for further security.

Businesses in Texas can face fines of up to $7,500 for each violation of the TDPSA. To avoid the penalty, you can correct the violation within 30 days of receiving notification from the Attorney General. Individuals cannot sue businesses for violations, unlike under certain other privacy regulations.

Get Compliant with TDPSA Law to Ensure Your Data Security!

While this goal is vital, it also raises potential corporate liability and emphasizes the importance of strong cyber risk prevention. 

Texas' new data privacy law increases the liability connected with data collection and processing. 

Clients can reduce their risk with robust cyber insurance. A qualified and experienced broker can assist retail agents in determining the appropriate coverage for protecting businesses operating in Texas.

You can get PurePrivacy to get your data removed from unwanted platforms to maximize your online safety.

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