Texas Lawmakers Pass Opt-Out Privacy Bill

Texas became the latest state to pass a privacy bill that aims to enable consumers to exert more control over data about themselves. Unless vetoed by Governor Greg Abbott (R-TX), the Texas Data Privacy and Security Act (SB 4) will require companies to allow residents to opt out of targeted advertising—defined by the bill as serving ads to people based on their online activity over time and across nonaffiliated websites or apps. The measure also will obligate companies to honor universal opt-out tools—such as opt-out signals that consumers can send through their browsers—but only if the companies honor those signals in other states. Currently, four states—California, Colorado, Connecticut, and Montana—have laws or regulations requiring companies to allow people to reject targeted advertising via a universal opt-out tool. As is the case in those other states, the Texas law only requires companies to honor universal opt-out mechanisms if consumers affirmatively activate the tools.