Paxton's probe follows lawsuits against Character.AI for allegedly unsafe product design and highlights the broader scrutiny of platforms like Kik, Instagram, and Discord for their use by children. The investigation underscores the lack of comprehensive federal privacy laws, leaving states to enforce their regulations. While tech companies challenge the constitutionality of the SCOPE Act, similar laws are expected in other states. Experts suggest that as more laws are enacted, it becomes evident that not all companies comply with these requirements, potentially leading to significant penalties.
Key takeaways:
- Texas Attorney General Ken Paxton is investigating 15 tech companies, including Rumble, Quora, and WeChat, for their data collection and use practices concerning minors.
- The investigation is part of enforcing Texas' new SCOPE Act, which requires parental control over minors' online accounts and prohibits selling minors' data without consent.
- Paxton's office has demanded companies provide details on their compliance with both the SCOPE Act and the Texas Data Privacy and Security Act by next week.
- Tech companies are challenging the SCOPE Act's constitutionality, but similar laws are expected to be enforced in other states like Maryland and New York.