Fairly Bill Makes App Stores Verify Every Account Holder’s Age

The text as introduced · 1,926 words

89R7917 MLH-F

By: Fairly
H.B. No. 4901

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of platforms for the sale and

distribution of software applications for mobile devices.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is

amended by adding Chapter 121 to read as follows:

CHAPTER 121. SOFTWARE APPLICATIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 121.001. DEFINITIONS. In this chapter:

(1) "Age category" means information collected by the

owner of an app store to designate a user based on the age

categories described by Section 121.021(b).

(2) "App store" means a publicly available Internet

website, software application, or other electronic service that

distributes software applications from the owner or developer of a

software application to the user of a mobile device.

(3) "Minor" means a child who is younger than 18 years

of age who has not had the disabilities of minority removed for

general purposes.

(4) "Mobile device" means a portable, wireless

electronic device, including a tablet or smartphone, capable of

transmitting, receiving, processing, and storing information

wirelessly that runs an operating system designed to manage

hardware resources and perform common services for software

applications on handheld electronic devices.

(5) "Personal data" means any information, including

sensitive data, that is linked or reasonably linkable to an

identified or identifiable individual. The term includes

pseudonymous data when the data is used by a person who processes or

determines the purpose and means of processing the data in

conjunction with additional information that reasonably links the

data to an identified or identifiable individual. The term does not

include deidentified data or publicly available information.

SUBCHAPTER B. DUTIES OF APP STORES

Sec. 121.021. DUTY TO VERIFY AGE OF USER; AGE CATEGORIES.

(a) When an individual in this state creates an account with an app

store, the owner of the app store shall:

(1) request the individual's age;

(2) use a commercially reasonable method of

verification to verify the individual's age; and

(3) assign to the individual a designation described

by Subsection (b).

(b) The owner of an app store shall use the following age

categories for assigning a designation:

(1) an individual who is younger than 13 years of age

is considered a "child";

(2) an individual who is at least 13 years of age but

younger than 16 years of age is considered a "younger teenager";

(3) an individual who is at least 16 years of age but

younger than 18 years of age is considered an "older teenager"; and

(4) an individual who is at least 18 years of age is

considered an "adult."

Sec. 121.022. PARENTAL CONSENT REQUIRED. (a) If the owner

of the app store determines under Section 121.021 that an

individual is a minor, the owner shall require that the minor's

account be affiliated with the account of an individual determined

to be:

(1) at least 18 years of age; and

(2) the minor's parent or guardian.

(b) The owner of an app store must obtain consent from the

minor's parent or guardian before allowing the minor to:

(1) download a software application;

(2) purchase a software application; or

(3) make a purchase in or using a software

application.

(c) The owner of an app store must obtain consent for each

individual download or purchase sought by the minor.

(d) To obtain consent from a minor's parent or guardian

under Subsection (b), the owner of an app store may use any

reasonable means to:

(1) disclose to the parent or guardian:

(A) the specific software application or

purchase for which consent is sought;

(B) the rating under Section 121.052 assigned to

the software application or purchase;

(C) the specific content or other elements that

led to the rating assigned under Section 121.052;

(D) the nature of any collection, use, or

distribution of personal data that would occur because of the

software application or purchase; and

(E) any measures taken by the developer of the

software application or purchase to protect the personal data of

users;

(2) give the parent or guardian a clear choice to give

or withhold consent for the download or purchase; and

(3) ensure that the consent is given:

(A) by the parent or guardian; and

(B) through the account affiliated with a minor's

account under Subsection (a).

(e) If a software developer provides the owner of an app

store with notice of a change under Section 121.053, the owner of

the app store shall:

(1) notify any individual who has given consent under

this section for a minor's use or purchase relating to a previous

version of the changed software application; and

(2) obtain consent from the individual for the minor's

continued use or purchase of the software application.

Sec. 121.023. DISPLAY OF AGE RATING FOR SOFTWARE

APPLICATION. (a) The owner of an app store that operates in this

state shall display for each software application available for

download and purchase on the app store:

(1) the rating under Section 121.052 assigned to the

software application; and

(2) the specific content or other elements that led to

the rating assigned under Section 121.052.

(b) The information displayed under this section must be

clear, accurate, and conspicuous.

Sec. 121.024. INFORMATION FOR SOFTWARE APPLICATION

DEVELOPERS. The owner of an app store that operates in this state

shall, using a commercially available method, allow the developer

of a software application to access current information related to:

(1) the age category assigned to each user under

Section 121.021(b); and

(2) whether consent has been obtained for each minor

user under Section 121.022.

Sec. 121.025. PROTECTION OF PERSONAL DATA. The owner of an

app store that operates in this state shall protect the personal

data of users by:

(1) limiting the collection and processing of personal

data to the minimum amount necessary for:

(A) verifying the age of an individual;

(B) obtaining consent under Section 121.022; and

(C) maintaining compliance records;

(2) transmitting personal data using

industry-standard encryption protocols that ensure data integrity

and confidentiality; and

(3) deleting personal data obtained for purposes of

Sections 121.021 and 121.022 once a user's age is verified and, if

applicable, consent has been obtained.

Sec. 121.026. VIOLATION. The owner of an app store that

operates in this state violates this subchapter if the owner:

(1) enforces a contract or a provision of a terms of

service agreement against a minor that the minor entered into or

agreed to without consent under Section 121.022;

(2) knowingly misrepresents information disclosed

under Section 121.022(d)(1);

(3) obtains a blanket consent to authorize multiple

downloads or purchases; or

(4) shares or discloses personal data obtained for

purposes of Section 121.021, except as required by Section 121.024

or other law.

Sec. 121.027. CONSTRUCTION OF SUBCHAPTER. Nothing in this

subchapter may be construed to:

(1) prevent the owner of an app store that operates in

this state from taking reasonable measures to block, detect, or

prevent the distribution of:

(A) obscene material, as that term is defined by

Section 43.21, Penal Code; or

(B) other material that may be harmful to minors;

(2) require the owner of an app store that operates in

this state to disclose a user's personal data to the developer of a

software application except as provided by this subchapter;

(3) allow the owner of an app store that operates in

this state to use a measure required by this chapter in a manner

that is arbitrary, capricious, anticompetitive, or unlawful;

(4) block or filter spam;

(5) prevent criminal activity; or

(6) protect the security of an app store or software

application.

SUBCHAPTER C. DUTIES OF SOFTWARE APPLICATION DEVELOPERS

Sec. 121.051. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to the developer of a software application that the

developer makes available to users in this state through an app

store.

Sec. 121.052. DESIGNATION OF AGE RATING. (a) The developer

of a software application shall assign to each software application

and to each purchase that can be made through the software

application an age rating based on the age categories described by

Section 121.021(b).

(b) The developer of a software application shall provide to

each app store through which the developer makes the software

application available:

(1) each rating assigned under Subsection (a); and

(2) the specific content or other elements that led to

each rating provided under Subdivision (1).

Sec. 121.053. CHANGES TO SOFTWARE APPLICATIONS. The

developer of a software application shall provide notice to each

app store through which the developer makes the software

application available before making any change to the terms of

service or privacy policy of the software application that:

(1) changes the type or category of personal data

collected, stored, or shared by the developer;

(2) affects or changes the rating assigned to the

software application under Section 121.052 or the content or

elements that led to that rating;

(3) adds new monetization features to the software

application, including:

(A) new opportunities to make a purchase in or

using the software application; or

(B) new advertisements in the software

application; or

(4) materially changes the functionality or user

experience of the software application.

Sec. 121.054. AGE VERIFICATION. (a) The developer of a

software application shall create and implement a system to verify:

(1) for each user of the software application, the age

category assigned to that user under Section 121.021(b); and

(2) for each minor user of the software application,

whether consent has been obtained under Section 121.022.

(b) The developer of a software application shall use

information provided by the owner of an app store under Section

121.024 to perform the verification required by this section.

Sec. 121.055. USE OF PERSONAL DATA. (a) The developer of a

software application may use personal data provided to the

developer under Section 121.024 only to:

(1) enforce restrictions and protections on the

software application related to age;

(2) ensure compliance with applicable laws and

regulations; and

(3) implement safety-related features and default

settings.

(b) The developer of a software application shall delete

personal data provided by the owner of an app store under Section

121.024 on completion of the verification required by Section

121.054.

Sec. 121.056. VIOLATION. The developer of a software

application violates this subchapter if the developer:

(1) enforces a contract or a provision of a terms of

service agreement against a minor that the minor entered into or

agreed to without consent under Section 121.054;

(2) knowingly misrepresents an age rating or reason

for that rating under Section 121.052; or

(3) shares or discloses the personal data of a user

that was acquired under this subchapter.

SUBCHAPTER D. ENFORCEMENT

Sec. 121.101. CIVIL ACTION; LIABILITY. (a) The parent or

guardian of a minor may bring an action against the owner of an app

store or the developer of a software application 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 considers appropriate.

(c) A violation of this chapter constitutes an injury in

fact to a minor.

Sec. 121.102. 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, 2025.