The text as introduced · 1,926 words
89R7917 MLH-F
By: Paxton
S.B. No. 2420
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.
Monitoring 
