The Texas App Store Accountability Act

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The Texas App Store Accountability Act establishes a regulatory framework for mobile app stores and developers, requiring them to verify user ages, obtain parental consent for minors’ app downloads and purchases, limit and protect personal data, and provide clear disclosures about app content and age ratings. The Act applies to app stores distributing software to mobile devices in Texas and creates both public and private enforcement mechanisms, including the possibility of civil penalties and private lawsuits under Texas deceptive trade practices law.

Despite its broad scope and detailed compliance obligations, the Act’s implementation is currently halted by a federal court injunction, which found that its requirements likely infringe on free speech rights and are unconstitutionally vague. As a result, while the Act’s provisions remain on the books, they are not presently enforceable, and the legal landscape may change depending on the outcome of ongoing litigation.

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The Act applies to any owner of an app store operating in Texas that distributes software applications to users of mobile devices. Notably, the statutory definition of “app store” is limited to platforms distributing apps to mobile devices, thereby excluding digital storefronts for PCs or gaming consoles such as Steam, PlayStation, or Xbox. The law also covers software developers whose applications are distributed through such app stores to Texas residents, making its reach broad within the mobile ecosystem but intentionally limited to mobile platforms.

Age Verification and Categorization

App store owners must implement mechanisms to verify the age of each user. Users are assigned to age categories (e.g., under 13, 13–15, 16–17, 18+), and this categorization is used to determine the level of parental involvement required for app downloads and purchases.

Parental Consent for Minors

If a user is determined to be a minor (i.e., not in the “adult” age category), the app store must require the minor’s account to be affiliated with a verified parent or guardian account. Parental consent must be obtained for each individual app download or purchase, including in-app purchases. The app store must provide parents with detailed disclosures about the app, its content rating, the reasons for the rating, data collection practices, and any protective measures in place. Consent must be given through the affiliated parent account, and parents must be notified and asked to renew consent if there are material changes to the app’s terms or privacy policy.

Display of Age Ratings and Content Notices

App stores must conspicuously display age ratings and content notices for each app available for download or purchase. If the app store has its own rating mechanism, it must explain this to users; otherwise, it must display the state-assigned rating and the specific content elements that led to that rating. All such information must be clear, accurate, and conspicuous.

Data Minimization and Security

App store owners are required to limit the collection and processing of personal data to what is strictly necessary for age verification, obtaining parental consent, and maintaining compliance records. All personal data must be transmitted using industry-standard encryption protocols to ensure confidentiality and integrity.

Information Sharing with Developers

App stores must provide developers with current information about each user’s age category and whether parental consent has been obtained for minor users, using commercially available methods. Developers, in turn, must use this information solely for compliance purposes and must verify the age category and consent status of each user.

Prohibited Conduct and Safe Harbor

The Act prohibits app store owners from enforcing contracts or terms of service against minors who entered into agreements without the required parental consent, misrepresenting information disclosed to parents, obtaining blanket consents for multiple downloads or purchases, or improperly sharing personal data. However, app store owners are shielded from liability if they use widely adopted industry standards for age verification and parental consent, applied consistently and in good faith.

Enforcement and Remedies

Violations of the Act are deemed deceptive or unfair trade practices under Texas law, exposing violators to enforcement actions by the Texas Attorney General and potential private lawsuits. Prevailing parents or guardians may seek injunctive relief, actual and punitive damages, attorneys’ fees, court costs, and other appropriate remedies.

Exceptions

The Act provides exceptions for certain emergency services apps (such as those providing direct access to 911 or crisis hotlines) and for nonprofit standardized testing apps, which do not require parental consent for downloads or purchases.

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