88R10031 MLH-F
By: Slawson H.B. No. 4412
A BILL TO BE ENTITLED
AN ACT
relating to online agreements between certain minors and certain
digital service providers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 11, Business & Commerce Code,
is amended by adding Chapter 509 to read as follows:
CHAPTER 509. ONLINE AGREEMENTS BETWEEN MINORS AND DIGITAL SERVICE
PROVIDERS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 509.001. DEFINITIONS. In this chapter:
(1) "Digital service" means a website, an application,
a program, or software that performs collection or processing
functions with Internet connectivity.
(2) "Digital service provider" means a person who owns
or operates a digital service.
(3) "Minor" means a child who is at least 13 years of
age but younger than 18 years of age.
(4) "Personal identifying information" means any
information linked or reasonably linked to a specific minor,
including:
(A) a name, account name, alias, or online
identifier;
(B) a home or other physical address;
(C) an Internet Protocol (IP) address or e-mail
address;
(D) a social security number;
(E) a telephone number;
(F) a driver's license number or state
identification card number;
(G) a passport number;
(H) physical characteristics or description;
(I) race, ethnicity, or national origin;
(J) religion or faith;
(K) sex, gender, or sexual orientation;
(L) family status;
(M) disability status;
(N) political affiliation;
(O) commercial information, including:
(i) records relating to personal property;
(ii) products or services the minor
purchased, obtained, or considered; or
(iii) other histories, interests, or
tendencies in consumption;
(P) biometric information;
(Q) device identifiers, online identifiers,
persistent identifiers, or digital fingerprinting information;
(R) Internet, browsing, or search history,
including any information relating to a minor's use of an Internet
website;
(S) geolocation information;
(T) audio, electronic, visual, thermal,
olfactory, or similar information, including facial recognition;
(U) educational information;
(V) health information;
(W) the contents of, attachments to, and parties
to text messages, e-mails, voicemails, audio conversations, and
video conversations;
(X) financial information, including:
(i) bank account numbers;
(ii) credit card numbers;
(iii) debit card numbers;
(iv) insurance policy numbers; or
(v) information related to the balance of
any financial accounts; or
(Y) any inferences drawn from personal
identifying information that might identify a minor's traits,
characteristics, or trends.
Sec. 509.002. APPLICABILITY. (a) This chapter applies to a
digital service provider that:
(1) collects or processes the personal identifying
information of minors; and
(2) either:
(A) targets minors; or
(B) knows or should know that the digital service
appeals to minors.
(b) For purposes of Subsection (a):
(1) a digital service targets or appeals to minors if:
(A) the digital service contains subject matter
that is tailored toward minors, including:
(i) animated characters;
(ii) instruction or activities intended for
minors;
(iii) music or audio popular among minors;
(iv) images containing:
(a) models who are minors; or
(b) celebrities who are minors or who
are popular among minors;
(v) colloquial use of language that is
common among minors; or
(vi) advertisements intended for minors; or
(B) empirical evidence obtained by the digital
service provider, an advertiser, the press, third-party
complaints, or another entity that conducts privacy and security
impact assessments demonstrates that:
(i) many users of the digital service are
minors; or
(ii) the intended audience for the digital
service is minors; and
(2) a digital service does not target or appeal to
minors by referring or linking to a digital service that targets or
appeals to minors.
SUBCHAPTER B. DIGITAL SERVICE PROVIDER DUTIES AND PROHIBITIONS
Sec. 509.051. PROHIBITION ON AGREEMENTS WITH CERTAIN
MINORS; EXEMPTIONS. (a) Except as provided by this section, a
digital service provider may not enter into an agreement with a
minor.
(b) For purposes of this section, an agreement includes:
(1) a terms of service agreement;
(2) a user agreement; and
(3) the creation of an account for a digital service.
(c) A digital service provider may enter into an agreement
with a minor if the minor's parent or guardian consents in a manner
that:
(1) is specific, informed, and unambiguous;
(2) takes into account:
(A) the minor's age; and
(B) the minor's developmental and cognitive
needs and capabilities;
(3) is for only a single specific agreement;
(4) occurs in the absence of any financial or other
incentive;
(5) occurs before the agreement is entered into;
(6) occurs in a time, place, and manner that the
minor's parent or guardian would expect the consent to be sought;
and
(7) is not deceptive or coercive.
SUBCHAPTER C. ENFORCEMENT
Sec. 509.101. CIVIL ACTION; LIABILITY. (a) A minor's parent
or guardian may bring an action against a digital service provider
for a violation of this chapter.
(b) Notwithstanding Sections 41.003 and 41.004, Civil
Practice and Remedies Code, a parent or guardian who prevails in an
action under this section is entitled to receive:
(1) injunctive relief;
(2) actual damages;
(3) punitive damages;
(4) reasonable attorney's fees;
(5) court costs; and
(6) any other relief the court deems appropriate.
(c) A violation of this chapter constitutes an injury in
fact to the minor.
Sec. 509.102. DECEPTIVE TRADE PRACTICE. A violation of
this chapter is a false, misleading, or deceptive act or practice as
defined by Section 17.46(b). In addition to any remedy under this
chapter, a remedy under Subchapter E, Chapter 17, is also available
for a violation of this chapter.
SECTION 2. This Act takes effect September 1, 2024.