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Texas Data Privacy and Security Act (TDPSA) compliance. No revenue threshold applies to all businesses. Covers data broker registration requirements, biometric identifier provisions under CUBI, consumer rights, AG enforcement, and 30-day cure period. Effective July 1, 2024.
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| name | texas-tdpsa-compliance |
| title | Texas Data Privacy and Security Act (TDPSA) |
| description | Texas Data Privacy and Security Act (TDPSA) compliance. No revenue threshold applies to all businesses. Covers data broker registration requirements, biometric identifier provisions under CUBI, consumer rights, AG enforcement, and 30-day cure period. Effective July 1, 2024. |
| author | mukul975 |
| author_url | https://github.com/mukul975/Privacy-Data-Protection-Skills/tree/main/skills/privacy/texas-tdpsa-compliance |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | data-protection |
| language | en |
The Texas Data Privacy and Security Act (TDPSA), codified as Tex. Bus. & Com. Code §541.001 through §541.203, was signed into law on June 18, 2023 (HB 4), and became effective July 1, 2024. Texas is the largest state by population to enact comprehensive consumer privacy legislation and is notable for having no revenue threshold for applicability — the TDPSA applies to any person that conducts business in Texas or produces products or services consumed by Texas residents, regardless of company size.
The TDPSA also interacts with the existing Texas Capture or Use of Biometric Identifier Act (CUBI), Tex. Bus. & Com. Code §503.001, which provides separate biometric data protections.
The TDPSA applies to a person that:
Key feature: No revenue or consumer count threshold. Unlike California ($25M revenue), Virginia (100,000 consumers), or Colorado (100,000 consumers), the TDPSA applies broadly to any non-small business processing personal data of Texas residents.
Small business exemption: Small businesses as defined by SBA size standards are exempt from most provisions but are NOT exempt from the prohibition on selling sensitive data without consent (§541.107(b)).
Additional exemptions (§541.003):
Liberty Commerce Inc. Assessment: Liberty Commerce Inc. is not an SBA-defined small business (annual revenue: $48M, 320 employees). It conducts business in Texas and processes personal data of Texas residents. The TDPSA applies.
Processing sensitive data requires opt-in consent. For small businesses: selling sensitive data without consent is prohibited regardless of SBA size.
The TDPSA includes specific data broker requirements:
A "data broker" is a business entity whose principal source of revenue is derived from collecting, processing, or transferring personal data the entity did not directly collect from consumers.
Data brokers must register with the Texas Secretary of State and pay a registration fee. Registration must include:
Data brokers must provide:
Liberty Commerce Inc. Assessment: Liberty Commerce Inc. is not a data broker — its principal revenue derives from e-commerce, not from collecting/processing/transferring personal data. The data broker provisions do not apply.
CUBI, enacted in 2009, provides additional protections for biometric identifiers:
Liberty Commerce Inc. Implementation: Liberty Commerce Inc. does not capture biometric identifiers from Texas consumers. Device-side biometric authentication (Face ID, fingerprint) processes locally and does not transmit biometric data to Liberty Commerce Inc. servers.
Must include:
Required for: