Texas Attorney General Ken Paxton is actively enforcing the state’s newly implemented data privacy law, issuing warnings to Sirius XM and three app-based companies accused of mishandling sensitive consumer data. These actions represent Texas’s commitment to upholding privacy standards in a state with over 30 million residents, many of whom use nationally available services.
The law requires businesses to provide clear notifications about their data collection practices and obtain explicit user consent for sensitive data sharing.
The recent notices highlight alleged failures by companies to comply with these requirements, particularly around location data and user consent. The companies targeted include Sirius XM, the weather app MyRadar, the travel rewards app Miles, and Tapestri, a platform that rewards users for their data. These warnings have been issued quietly, with the details obtained through public records rather than press announcements.
Why It Matters: Texas’s enforcement of its new data privacy law signals a growing trend in state-level consumer protection and challenges companies to enhance their transparency and consent mechanisms. With personal data increasingly viewed as a sensitive and valuable resource, this case highlights the constant push and pull between how businesses operate and the need to protect people’s privacy.
- Sirius XM Accusations: The satellite broadcaster allegedly shared sensitive user data with unaffiliated third parties, including vehicle and location details. The AG’s office criticized Sirius XM for not providing consumers with “reasonably clear notice” or obtaining proper consent in line with the law’s strict requirements.
- MyRadar and Miles Apps Practices: Both apps allegedly failed to inform users about their rights under the privacy law or secure explicit consent for data sharing. MyRadar’s CEO defended the company’s practices, emphasizing anonymized analytics and opt-in consent mechanisms, but noted discrepancies in the AG’s assessment.
- Tapestri Data Sharing: Tapestri was accused of sharing user location data without sufficient notification or consent. The company markets itself as rewarding users for their data, but the AG’s notice highlights compliance gaps in its operations.
- Insurers’ Role in Data Use: MyRadar’s collaboration with Arity, a mobility data firm linked to Allstate, raises questions about using consumer-driving data for insurance pricing and predictive analytics. This connection highlights broader concerns about data monetization and privacy risks.
- Broader Enforcement Actions: The AG also investigated National Public Data, a data broker implicated in a massive breach exposing sensitive records. This reflects Texas’s wider efforts to address vulnerabilities in consumer data security.
