TDPSA IN TEXAS: STRATEGIC GUIDE FOR BUSINESS LEADERS AND EXECUTIVES
Who Must Comply?
Businesses operating in Texas or handling data from Texas residents that meet volume or revenue thresholds.
Steps to Comply
Data audit, privacy policies, consumer request mechanisms, third-party contracts, and staff training.
Practical Example
Learn the best practices to prevent attacks, from internal education to advanced technologies.
Non-Compliance Risks
Fines, loss of customer trust, and legal enforcement actions.
The Texas Data Privacy and Security Act (TDPSA), effective July 1, 2024, sets a new legal standard for companies that process personal data from Texas residents. Signed into law in June 2023 as House Bill 4, it is Texas’ first comprehensive privacy regulation and follows models like CCPA and GDPR.
For executives and business leaders, this presents a dual challenge: navigating compliance requirements and transforming privacy into a competitive asset. It’s not just about avoiding fines of up to $7,500 per violation—it’s about safeguarding your brand reputation, reinforcing customer trust, and demonstrating digital leadership.
This executive guide will help you determine whether your business is subject to TDPSA, outline the essential steps to take, and offer practical strategies to ensure smooth and efficient compliance.
Who Must Comply with TDPSA?
The TDPSA does not apply universally to all businesses; instead, it focuses on those that manage personal data at scale or derive value from it. As a business leader, determining whether your operations fall within the scope of the law is the first step toward ensuring compliance. Below are the criteria to identify your obligations:
– It operates in Texas or offers services to residents,
– And meets one of these thresholds:
* Processes personal data from at least 100,000 consumers annually,
* Or handles 25,000 consumers’ data and earns revenue from it.
What Should Business Leaders Do to Comply?
Once you’ve determined that your organization falls under the scope of the TDPSA, the next step is execution. Business leaders must take a proactive role in aligning their data practices with the law. Compliance is not only about avoiding fines—it’s about earning consumer trust and demonstrating digital responsibility. The following steps offer a practical framework:
Identify what data you collect, where it’s stored, how it’s used, and who it’s shared with.
Clearly inform consumers of their rights and data processing purposes.
Allow users to request access, correction, or deletion of their data.
Ensure third-party providers are contractually aligned with TDPSA.
Make sure IT, legal, and customer service teams know their roles.
Practical Example: Online Retailer
Retail businesses that sell online often underestimate their exposure to data privacy laws, especially when expanding to new markets like Texas. This example illustrates how even small operational changes can lead to full compliance with the TDPSA while preserving customer experience and trust.
– Displays a clear privacy notice at sign-up.
– Provides a self-service data management portal.
– Has a contract with its email marketing provider.
Consequences of Non-Compliance
Failing to comply with the TDPSA can have significant financial, legal, and reputational consequences. For business leaders, this means that non-compliance is not just a legal issue—it is a strategic risk. The law empowers the Texas Attorney General to enforce penalties and corrective actions that may disrupt your operations. Beyond fines, loss of consumer trust can lead to long-term damage that affects brand value and customer retention.
This means that for every instance in which a company fails to comply with the TDPSA—such as not responding to a consumer’s data access request within the legal timeframe—the Texas Attorney General can impose a fine of up to $7,500. If violations are widespread, fines can quickly escalate into hundreds of thousands or even millions of dollars.
Data privacy is now a key factor in consumer loyalty. If your business is exposed in the media for violating privacy laws or mishandling personal data, customers may choose competitors who demonstrate better data stewardship. This damage can take years to repair and impact revenue long after the legal case is closed.
The law authorizes the Texas Attorney General to investigate, demand documentation, and initiate lawsuits against non-compliant organizations. This may include injunctions to stop business operations until the company meets legal obligations, which can result in costly delays and public scrutiny.
frequently
asked questions (FAQ)
Yes. If you collect personal data from Texas residents, the law applies—regardless of whether you have a physical presence in the state.
Not necessarily, but it is highly recommended. Partnering with a compliance expert or third-party provider helps minimize risk and speeds up implementation
Any information that can be linked to an identifiable individual, such as names, emails, IP addresses, or even behavioral tracking data.
No. It complements other regulations. If you operate in multiple states or internationally, you may be subject to several data privacy laws.
You must respond within 45 days of receiving the request. This timeline may be extended once by an additional 45 days under certain conditions.
Up to $7,500 per violation, plus potential legal action, operational disruption, and long-term reputational damage
“It’s not just about compliance, it’s about building trust. Privacy is a strategic differentiator.”
Satya Nadella, CEO of Microsoft
At Conexpro, we help you understand TDPSA and implement practical, secure solutions to ensure compliance. Become a company that leads with trust and responsibility.
Contact us today.
