TX
Texas Senate Bill SB2420

Texas 2025 - 89th Regular

Texas Senate Bill SB2420 Compare Versions

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1-By: Paxton, et al. S.B. No. 2420
2-
3-
1+By: Paxton, Kolkhorst S.B. No. 2420
2+ (In the Senate - Filed March 13, 2025; March 25, 2025, read
3+ first time and referred to Committee on State Affairs;
4+ April 7, 2025, reported adversely, with favorable Committee
5+ Substitute by the following vote: Yeas 10, Nays 0; April 7, 2025,
6+ sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR S.B. No. 2420 By: Bettencourt
49
510
611 A BILL TO BE ENTITLED
712 AN ACT
813 relating to the regulation of platforms for the sale and
914 distribution of software applications for mobile devices.
1015 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1116 SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
1217 amended by adding Chapter 121 to read as follows:
1318 CHAPTER 121. SOFTWARE APPLICATIONS
1419 SUBCHAPTER A. GENERAL PROVISIONS
1520 Sec. 121.001. SHORT TITLE. This chapter may be cited as the
1621 App Store Accountability Act.
1722 Sec. 121.002. DEFINITIONS. In this chapter:
1823 (1) "Age category" means information collected by the
1924 owner of an app store to designate a user based on the age
2025 categories described by Section 121.021(b).
2126 (2) "App store" means a publicly available Internet
2227 website, software application, or other electronic service that
2328 distributes software applications from the owner or developer of a
2429 software application to the user of a mobile device.
2530 (3) "Minor" means a child who is younger than 18 years
2631 of age who has not had the disabilities of minority removed for
2732 general purposes.
2833 (4) "Mobile device" means a portable, wireless
2934 electronic device, including a tablet or smartphone, capable of
3035 transmitting, receiving, processing, and storing information
3136 wirelessly that runs an operating system designed to manage
3237 hardware resources and perform common services for software
3338 applications on handheld electronic devices.
3439 (5) "Personal data" means any information, including
3540 sensitive data, that is linked or reasonably linkable to an
3641 identified or identifiable individual. The term includes
3742 pseudonymous data when the data is used by a person who processes or
3843 determines the purpose and means of processing the data in
3944 conjunction with additional information that reasonably links the
4045 data to an identified or identifiable individual. The term does not
4146 include deidentified data or publicly available information.
4247 SUBCHAPTER B. DUTIES OF APP STORES
4348 Sec. 121.021. DUTY TO VERIFY AGE OF USER; AGE CATEGORIES.
4449 (a) When an individual in this state creates an account with an app
4550 store, the owner of the app store shall use a commercially
4651 reasonable method of verification to verify the individual's age
4752 category under Subsection (b).
4853 (b) The owner of an app store shall use the following age
4954 categories for assigning a designation:
5055 (1) an individual who is younger than 13 years of age
5156 is considered a "child";
5257 (2) an individual who is at least 13 years of age but
5358 younger than 16 years of age is considered a "younger teenager";
5459 (3) an individual who is at least 16 years of age but
5560 younger than 18 years of age is considered an "older teenager"; and
5661 (4) an individual who is at least 18 years of age is
5762 considered an "adult."
5863 Sec. 121.022. PARENTAL CONSENT REQUIRED. (a) If the owner
5964 of the app store determines under Section 121.021 that an
6065 individual is a minor who belongs to an age category that is not
6166 "adult," the owner shall require that the minor's account be
6267 affiliated with a parent account belonging to the minor's parent or
6368 guardian.
6469 (b) For an account to be affiliated with a minor's account
6570 as a parent account, the owner of an app store must use a
6671 commercially reasonable method to verify that the account belongs
6772 to an individual who:
6873 (1) the owner of the app store has verified belongs to
6974 the age category of "adult" under Section 121.021; and
7075 (2) has legal authority to make a decision on behalf of
7176 the minor with whose account the individual is seeking affiliation.
7277 (c) A parent account may be affiliated with multiple minors'
7378 accounts.
74- (d) Except as provided by this section, the owner of an app
75- store must obtain consent from the minor's parent or guardian
76- through the parent account affiliated with the minor's account
77- before allowing the minor to:
79+ (d) The owner of an app store must obtain consent from the
80+ minor's parent or guardian through the parent account affiliated
81+ with the minor's account before allowing the minor to:
7882 (1) download a software application;
7983 (2) purchase a software application; or
8084 (3) make a purchase in or using a software
8185 application.
8286 (e) The owner of an app store must:
8387 (1) obtain consent for each individual download or
8488 purchase sought by the minor; and
8589 (2) notify the developer of each applicable software
8690 application if a minor's parent or guardian revokes consent through
8791 a parent account.
8892 (f) To obtain consent from a minor's parent or guardian
8993 under Subsection (d), the owner of an app store may use any
9094 reasonable means to:
9195 (1) disclose to the parent or guardian:
9296 (A) the specific software application or
9397 purchase for which consent is sought;
9498 (B) the rating under Section 121.052 assigned to
9599 the software application or purchase;
96100 (C) the specific content or other elements that
97101 led to the rating assigned under Section 121.052;
98102 (D) the nature of any collection, use, or
99103 distribution of personal data that would occur because of the
100104 software application or purchase; and
101105 (E) any measures taken by the developer of the
102106 software application or purchase to protect the personal data of
103107 users;
104108 (2) give the parent or guardian a clear choice to give
105109 or withhold consent for the download or purchase; and
106110 (3) ensure that the consent is given:
107111 (A) by the parent or guardian; and
108112 (B) through the account affiliated with a minor's
109113 account under Subsection (a).
110114 (g) If a software developer provides the owner of an app
111115 store with notice of a change under Section 121.053, the owner of
112116 the app store shall:
113117 (1) notify any individual who has given consent under
114118 this section for a minor's use or purchase relating to a previous
115119 version of the changed software application; and
116120 (2) obtain consent from the individual for the minor's
117121 continued use or purchase of the software application.
118- (h) The owner of an app store is not required to obtain
119- consent from a minor's parent or guardian for:
120- (1) the download of a software application that:
121- (A) provides a user with direct access to
122- emergency services, including:
123- (i) 9-1-1 emergency services;
124- (ii) a crisis hotline; or
125- (iii) an emergency assistance service that
126- is legally available to a minor;
127- (B) limits data collection to information:
128- (i) collected in compliance with the
129- Children's Online Privacy Protection Act of 1998 (15 U.S.C. Section
130- 6501 et seq.); and
131- (ii) necessary for the provision of
132- emergency services;
133- (C) allows a user to access and use the software
134- application without requiring the user to create an account with
135- the software application; and
136- (D) is operated by or in partnership with:
137- (i) a governmental entity;
138- (ii) a nonprofit organization; or
139- (iii) an authorized emergency service
140- provider; or
141- (2) the purchase or download of a software application
142- that is operated by or in partnership with a nonprofit organization
143- that:
144- (A) develops, sponsors, or administers a
145- standardized test used for purposes of admission to or class
146- placement in a postsecondary educational institution or a program
147- within a postsecondary educational institution; and
148- (B) is subject to Subchapter D, Chapter 32,
149- Education Code.
150122 Sec. 121.023. DISPLAY OF AGE RATING FOR SOFTWARE
151123 APPLICATION. (a) If the owner of an app store that operates in this
152- state has a mechanism for displaying an age rating or other content
153- notice, the owner shall:
154- (1) make available to users an explanation of the
155- mechanism; and
156- (2) display for each software application available
157- for download and purchase on the app store the age rating and other
158- content notice.
159- (b) If the owner of an app store that operates in this state
160- does not have a mechanism for displaying an age rating or other
161- content notice, the owner shall display for each software
162- application available for download and purchase on the app store:
124+ state has a mechanism for displaying a rating or other content
125+ notice, the owner shall display for each software application
126+ available for download and purchase on the app store:
163127 (1) the rating under Section 121.052 assigned to the
164128 software application; and
165129 (2) the specific content or other elements that led to
166130 the rating assigned under Section 121.052.
167- (c) The information displayed under this section must be
131+ (b) The information displayed under this section must be
168132 clear, accurate, and conspicuous.
169133 Sec. 121.024. INFORMATION FOR SOFTWARE APPLICATION
170134 DEVELOPERS. The owner of an app store that operates in this state
171135 shall, using a commercially available method, allow the developer
172136 of a software application to access current information related to:
173137 (1) the age category assigned to each user under
174138 Section 121.021(b); and
175139 (2) whether consent has been obtained for each minor
176140 user under Section 121.022.
177141 Sec. 121.025. PROTECTION OF PERSONAL DATA. The owner of an
178142 app store that operates in this state shall protect the personal
179143 data of users by:
180144 (1) limiting the collection and processing of personal
181145 data to the minimum amount necessary for:
182146 (A) verifying the age of an individual;
183147 (B) obtaining consent under Section 121.022; and
184148 (C) maintaining compliance records; and
185149 (2) transmitting personal data using
186150 industry-standard encryption protocols that ensure data integrity
187151 and confidentiality.
188- Sec. 121.026. VIOLATION. (a) The owner of an app store
189- that operates in this state violates this subchapter if the owner:
152+ Sec. 121.026. VIOLATION. The owner of an app store that
153+ operates in this state violates this subchapter if the owner:
190154 (1) enforces a contract or a provision of a terms of
191155 service agreement against a minor that the minor entered into or
192156 agreed to without consent under Section 121.022;
193157 (2) knowingly misrepresents information disclosed
194158 under Section 121.022(f)(1);
195159 (3) obtains a blanket consent to authorize multiple
196160 downloads or purchases; or
197161 (4) shares or discloses personal data obtained for
198162 purposes of Section 121.021, except as required by Section 121.024
199163 or other law.
200- (b) The owner of an app store is not liable for a violation
201- of Section 121.021 or 121.022 if the owner of the app store:
202- (1) uses widely adopted industry standards to:
203- (A) verify the age of each user as required by
204- Section 121.021; and
205- (B) obtain parental consent as required by
206- Section 121.022; and
207- (2) applies those standards consistently and in good
208- faith.
209164 Sec. 121.027. CONSTRUCTION OF SUBCHAPTER. Nothing in this
210165 subchapter may be construed to:
211166 (1) prevent the owner of an app store that operates in
212167 this state from taking reasonable measures to block, detect, or
213168 prevent the distribution of:
214169 (A) obscene material, as that term is defined by
215170 Section 43.21, Penal Code; or
216171 (B) other material that may be harmful to minors;
217172 (2) require the owner of an app store that operates in
218173 this state to disclose a user's personal data to the developer of a
219174 software application except as provided by this subchapter;
220175 (3) allow the owner of an app store that operates in
221176 this state to use a measure required by this chapter in a manner
222177 that is arbitrary, capricious, anticompetitive, or unlawful;
223178 (4) block or filter spam;
224179 (5) prevent criminal activity; or
225180 (6) protect the security of an app store or software
226181 application.
227182 SUBCHAPTER C. DUTIES OF SOFTWARE APPLICATION DEVELOPERS
228183 Sec. 121.051. APPLICABILITY OF SUBCHAPTER. This subchapter
229184 applies only to the developer of a software application that the
230185 developer makes available to users in this state through an app
231186 store.
232187 Sec. 121.052. DESIGNATION OF AGE RATING. (a) The developer
233188 of a software application shall assign to each software application
234189 and to each purchase that can be made through the software
235190 application an age rating based on the age categories described by
236191 Section 121.021(b).
237192 (b) The developer of a software application shall provide to
238193 each app store through which the developer makes the software
239194 application available:
240195 (1) each rating assigned under Subsection (a); and
241196 (2) the specific content or other elements that led to
242197 each rating provided under Subdivision (1).
243198 Sec. 121.053. CHANGES TO SOFTWARE APPLICATIONS. (a) The
244199 developer of a software application shall provide notice to each
245200 app store through which the developer makes the software
246201 application available before making any significant change to the
247202 terms of service or privacy policy of the software application.
248203 (b) For purposes of this section, a change is significant if
249204 it:
250205 (1) changes the type or category of personal data
251206 collected, stored, or shared by the developer;
252207 (2) affects or changes the rating assigned to the
253208 software application under Section 121.052 or the content or
254209 elements that led to that rating;
255210 (3) adds new monetization features to the software
256211 application, including:
257212 (A) new opportunities to make a purchase in or
258213 using the software application; or
259214 (B) new advertisements in the software
260215 application; or
261216 (4) materially changes the functionality or user
262217 experience of the software application.
263218 Sec. 121.054. AGE VERIFICATION. (a) The developer of a
264219 software application shall create and implement a system to use
265220 information received under Section 121.024 to verify:
266221 (1) for each user of the software application, the age
267222 category assigned to that user under Section 121.021(b); and
268223 (2) for each minor user of the software application,
269224 whether consent has been obtained under Section 121.022.
270225 (b) The developer of a software application shall use
271226 information received from the owner of an app store under Section
272227 121.024 to perform the verification required by this section.
273228 Sec. 121.055. USE OF PERSONAL DATA. (a) The developer of a
274229 software application may use personal data provided to the
275230 developer under Section 121.024 only to:
276231 (1) enforce restrictions and protections on the
277232 software application related to age;
278233 (2) ensure compliance with applicable laws and
279234 regulations; and
280235 (3) implement safety-related features and default
281236 settings.
282237 (b) The developer of a software application shall delete
283238 personal data provided by the owner of an app store under Section
284239 121.024 on completion of the verification required by Section
285240 121.054.
286241 Sec. 121.056. VIOLATION. (a) Except as provided by this
287242 section, the developer of a software application violates this
288243 subchapter if the developer:
289244 (1) enforces a contract or a provision of a terms of
290245 service agreement against a minor that the minor entered into or
291246 agreed to without consent under Section 121.054;
292247 (2) knowingly misrepresents an age rating or reason
293248 for that rating under Section 121.052; or
294249 (3) shares or discloses the personal data of a user
295250 that was acquired under this subchapter.
296251 (b) The developer of a software application is not liable
297252 for a violation of Section 121.052 if the software developer:
298253 (1) uses widely adopted industry standards to
299254 determine the rating and specific content required by this section;
300255 and
301256 (2) applies those standards consistently and in good
302257 faith.
303258 (c) The developer of a software application is not liable
304259 for a violation of Section 121.054 if the software developer:
305260 (1) relied in good faith on age category and consent
306261 information received from the owner of an app store; and
307262 (2) otherwise complied with the requirements of this
308263 section.
309264 SUBCHAPTER D. ENFORCEMENT
310265 Sec. 121.101. CIVIL ACTION; LIABILITY. (a) The parent or
311266 guardian of a minor may bring an action against the owner of an app
312267 store or the developer of a software application for a violation of
313268 this chapter.
314269 (b) Notwithstanding Sections 41.003 and 41.004, Civil
315270 Practice and Remedies Code, a parent or guardian who prevails in an
316271 action under this section is entitled to receive:
317272 (1) injunctive relief;
318273 (2) actual damages;
319274 (3) punitive damages;
320275 (4) reasonable attorney's fees;
321276 (5) court costs; and
322277 (6) any other relief the court considers appropriate.
323278 (c) A violation of this chapter constitutes an injury in
324279 fact to a minor.
325280 Sec. 121.102. DECEPTIVE TRADE PRACTICE. A violation of
326- this chapter constitutes a deceptive trade practice in addition to
327- the practices described by Subchapter E, Chapter 17, and is
328- actionable under that subchapter.
281+ this chapter is a false, misleading, or deceptive act or practice as
282+ defined by Section 17.46(b). In addition to any remedy under this
283+ chapter, a remedy under Subchapter E, Chapter 17, is also available
284+ for a violation of this chapter.
329285 Sec. 121.103. CUMULATIVE REMEDIES. The actions and
330286 remedies provided by this chapter are not exclusive and are in
331287 addition to any other action or remedy provided by law.
332- SECTION 2. It is the intent of the legislature that every
333- provision, section, subsection, sentence, clause, phrase, or word
334- in this Act, and every application of the provisions in this Act to
335- every person, group of persons, or circumstances, is severable from
336- each other. If any application of any provision in this Act to any
337- person, group of persons, or circumstances is found by a court to be
338- invalid for any reason, the remaining applications of that
339- provision to all other persons and circumstances shall be severed
340- and may not be affected.
341- SECTION 3. This Act takes effect January 1, 2026.
288+ SECTION 2. This Act takes effect January 1, 2026.
289+ * * * * *