The Texas Data Privacy and Security Act marks a significant step forward in how businesses must handle and protect sensitive information. Given that cyber threats constantly evolve, companies across Texas face increasing pressure to secure their systems and safeguard customer data.
At the same time, the legal landscape is shifting, with new requirements that demand greater transparency and accountability. For Texas business owners, staying compliant isn’t just about avoiding penalties. It’s about building trust and resilience in a digital landscape.
In this article, we’ll break down what the law means, what steps you can take to meet its standards, and how to strengthen your cybersecurity posture along the way.
What Is the Texas Data Privacy and Security Act (TDPSA)?
The Texas Data Privacy and Security Act (TDPSA) is a new state law designed to give consumers more control over how their personal data is collected, used, and protected by businesses.
Effective as of July 1st, 2024, the TDPSA applies to a wide range of organizations that operate in Texas or handle the personal data of Texas residents.
At its core, the TDPSA requires businesses to be more transparent about their data practices. This includes:
- Informing individuals when their data is being collected.
- Offering the chance to opt out of data sales.
- Making sure reasonable security measures are in place to prevent breaches or misuse.
The law brings Texas in line with other states that have already adopted comprehensive data privacy legislation. For businesses, this means reviewing current data handling processes, updating privacy policies, and possibly adjusting internal security protocols to stay compliant.
Understanding the TDPSA is an important step toward maintaining customer trust and meeting legal obligations in the digital age.
Why The TDPSA Matters for Texas Businesses
With millions of personal records exposed in reported data breaches across Texas in 2023 alone, the risks of poor data protection are clear and growing. From ransomware attacks to insider threats, businesses of all sizes can be targeted. The TDPSA was introduced to respond to these rising threats and increasing consumer concern around data privacy.
Customers today are more informed than ever. They rightfully want to know who is collecting their information, how it’s being used, and what steps are being taken to protect it.
Failing to meet those expectations can have serious consequences. Beyond potential fines or lawsuits, companies risk losing trust, which is a valuable element in our digital economy. A single data breach can take years to recover from, both legally and reputationally.
The TDPSA is not just a legal requirement, but an opportunity for Texas businesses to show accountability and strengthen their cybersecurity posture. Investing in the right cybersecurity services early on can help protect your operations, your customers, and your brand for the long term.
What Types of Businesses Must Follow the TDPSA Act?
The TDPSA is designed to increase transparency and accountability in how businesses handle personal data. But not all organizations fall under its scope.
If you’re unsure whether your business must comply with the TDPSA, you should consult with cybersecurity professionals. Experts can help assess your data practices and ensure you’re prepared for compliance.
Here’s a quick overview of who must comply and who is exempt:
| Who Must Comply (Covered Entities) | Who Is Exempt |
| Businesses operating in Texas that collect or process the personal data of 10,000 or more Texas residents per year. | Small businesses defined by the U.S. Small Business Administration (SBA), unless they sell sensitive personal data. |
| Referred to as “controllers”, these businesses are responsible for collecting, using, and protecting personal data in compliance with the TDPSA. | Financial institutions that are already regulated under the Gramm-Leach-Bliley Act (GLBA). |
| Controllers must give consumers the right to access, delete, or opt out of data collection practices. | Healthcare providers and related entities covered by HIPAA regulations. |
Key Consumer Rights Protected by The Data Privacy and Security Act in Texas
The Texas Data Privacy and Security Act introduces a significant shift in how businesses manage personal data, placing greater power in the hands of consumers. With this legislation, individuals in Texas are given clear rights over their personal information, and businesses are expected to uphold those rights transparently and responsibly.
For Texas businesses, understanding and supporting these rights is not just about compliance. It’s about building trust in a privacy-conscious world while strengthening the Texas cybersecurity landscape.
Here’s an overview of the key consumer rights protected under the TDPSA:
- Right to Access
Consumers have the right to know what personal data a business has collected about them, how it’s being used, and who it’s being shared with. This helps individuals stay informed and in control of their information.
- Right to Correct
If the data a business holds is inaccurate or outdated, consumers can request corrections. This guarantees that personal records remain relevant and truthful.
- Right to Delete
Consumers can ask businesses to delete the personal data they’ve collected, with some exceptions. This gives individuals a way to limit their digital footprint when they no longer want their data retained.
- Right to Opt Out
Under the TDPSA, individuals can opt out of the sale of their personal data or the use of their information for targeted advertising, providing more control over how their data is monetized.
- Right to Data Portability
Consumers have the right to request their data in a usable format and, in some cases, transfer it to another service provider. This encourages data transparency and flexibility.
What Obligations Businesses Must Meet to Stay Compliant
For businesses that fall under the TDPSA, compliance involves more than updating privacy policies. It requires a thoughtful and proactive approach to how personal data is handled.
Here’s an overview of the core obligations:
| Compliance Obligation | Description |
| Data Transparency | Businesses in Texas must clearly inform consumers about what personal data is being collected, why it’s being used, and with whom it may be shared. This information should be accessible through a clear and easy-to-understand privacy notice. |
| Consumer Rights Requests | Organizations are required to provide mechanisms for consumers to exercise their data rights, such as accessing, correcting, deleting, or opting out of certain data uses. Businesses must respond to these requests within a reasonable timeframe, typically 45 days. |
| Data Security Measures | Companies must implement reasonable administrative, technical, and physical safeguards to protect personal data from unauthorized access or disclosure. This includes regular risk assessments and updates to existing security protocols. |
| Data Minimization and Purpose Limitation | Only the data necessary for a specific purpose should be collected and used. Texas businesses should avoid collecting excess information that isn’t relevant to their service. |
| Contractual Safeguards with Third Parties | If personal data is shared with vendors or partners, businesses are responsible for making sure that those third parties also handle data in a compliant and secure manner. |
| Avoiding Discrimination | Businesses must not discriminate against consumers who choose to exercise their privacy rights, such as by denying services or charging different prices. |
If your organization collects or processes data from Texas residents, it’s essential to understand your responsibilities under this law. Working with a cybersecurity partner can help guarantee your policies, systems, and teams are ready to meet the standard.
What Happens If You Don’t Comply with TDPSA?
Failing to comply with the Texas Data Privacy and Security Act can have far-reaching consequences for any business operating in or serving customers in Texas. While data privacy may sometimes seem like a legal formality, the reality is that non-compliance can damage both your finances and your reputation in ways that are hard to recover from.
Some consequences of failing to comply with the TDPSA include, but are not limited to:
- Legal Penalties
- Consumer Lawsuits and Complaints
- Reputation and Customer Trust
Legal Penalties
One of the most immediate risks is financial. The Texas Attorney General has the authority to enforce the TDPSA, and violations can lead to substantial fines. Each breach or failure to comply could result in civil penalties, especially if a business is found to be negligent or deliberately ignoring its obligations.
Consumer Lawsuits and Complaints
While the TDPSA does not currently grant consumers the right to sue directly, complaints can still be submitted to the Attorney General’s office. In our digital age, it doesn’t take long for one complaint to turn into a viral headline. That kind of attention can lead to investigations, legal challenges, or worse, loss of business.
Reputation and Customer Trust
Perhaps the most lasting damage comes from the loss of customer trust. Data privacy is increasingly tied to brand loyalty. If customers feel that their information isn’t safe or that their rights are not respected, they’ll likely take their business elsewhere, and they may not come back.
By staying compliant, you’re not only protecting your business from penalties, but you’re also reinforcing your credibility, building trust, and showing your customers that their privacy matters.
Core Cybersecurity Laws in Texas
While the Texas Data Privacy and Security Act has gained attention for its impact on businesses handling personal data, it’s far from the only regulation organizations must understand.
Several other laws and frameworks apply, especially to companies working with public-sector clients or managing sensitive systems, such as:
- Mandatory Cybersecurity Training – House Bill 3834
- Texas Administrative Code – TAC 202
- Texas Cybersecurity Framework (TCF)
Mandatory Cybersecurity Training – House Bill 3834
Under HB 3834, cybersecurity awareness is mandatory for certain entities. This regulation requires annual cybersecurity training for employees of state agencies, local governments, and any vendor who contracts with public-sector entities in Texas.
The goal is to reduce risk through education and to guarantee that everyone with access to sensitive systems knows how to recognize and respond to cyber threats. Training must be completed through a program approved by the Texas Department of Information Resources (DIR).
For businesses offering services to public organizations, staying in compliance with HB 3834 is essential not only to fulfil contract requirements but also to build trust with government partners.
Texas Administrative Code – TAC 202
The Texas Administrative Code, Title 1, Chapter 202 (TAC 202) sets the minimum cybersecurity standards for state agencies and higher education institutions. However, its influence extends to vendors and contractors as well, especially those providing IT services or managing data on behalf of public institutions.
TAC 202 is closely tied to the NIST Cybersecurity Framework, outlining requirements for:
- risk assessment.
- incident response.
- access control.
- continuous monitoring.
While private-sector businesses aren’t legally bound by TAC 202, aligning with its best practices can help demonstrate a proactive security posture, especially when working with regulated entities.
Texas Cybersecurity Framework (TCF)
Developed by the Texas Department of Information Resources (DIR), the Texas Cybersecurity Framework (TCF) offers a structured approach to managing cyber risk. It’s modeled after NIST standards but tailored to meet the unique needs of Texas agencies and organizations.
The TCF breaks down cybersecurity efforts into five core functions:
| Function | Description |
| Identify | Understand what assets and data you have, and where risks exist. |
| Protect | Put proper measures in place to secure systems, networks, and data. |
| Detect | Monitor for signs of cybersecurity events or vulnerabilities. |
| Respond | Establish plans to manage incidents effectively when they occur. |
| Recover | Restore systems and data to full functionality after a breach or disruption. |
Though not mandatory for all businesses, the TCF serves as a valuable blueprint, especially for organizations aiming to build resilience or partner with the public sector. Aligning with this framework helps businesses structure their security programs in a way that’s recognized and respected across the state.
Practical Tips for Business Compliance, Cybersecurity Laws & Acts
Compliance can sometimes be overwhelming. However, with the right steps, you can build a strong foundation that keeps your business protected and aligned with legal requirements.
Here are some practical, high-impact tips for improving your cybersecurity posture and meeting compliance obligations:
Conduct Regular Risk Assessments
Start by understanding where your vulnerabilities lie. Risk assessments help you identify weaknesses in your systems, processes, and third-party relationships. They also provide a clear roadmap for strengthening your defenses and prioritizing investments.
Implement Employee Training Programs
Your team is often your first line of defense, or it can be your weakest link. Invest in regular cybersecurity awareness training to help employees recognize phishing attempts, understand safe data handling practices, and respond appropriately to potential threats.
Update Privacy Policies
Transparency is a core component of most data privacy laws. Make sure your privacy policies are up to date, clearly written, and accessible. Explain what data you collect, how you use it, and how consumers can exercise their rights.
Use Secure Data Storage and Access Controls
Whether you’re storing data in the cloud or on physical servers, always make sure that only authorized users can access it. Use encryption, multi-factor authentication, and regular access reviews to minimize risks associate with data breaches.
Develop an Incident Response Plan
Even with strong defenses, no system is immune to cyberattacks. Having an incident response plan in place can guarantee that even if a data breach occurs, your team knows exactly how to react. This method can help with minimizing downtime, preserving evidence, and notifying affected parties as required by law.
Keep Software and Systems Updated
Outdated software often contains vulnerabilities that modern digital threats can easily exploit. Make sure you keep up with patches and updates, especially for operating systems, firewalls, and any third-party platforms you use.
Work with Cybersecurity Professionals
Partnering with a cybersecurity service provider can help you stay ahead of changing regulations, reduce risk, and guarantee that your business is taking a proactive approach to data protection.
How CyberGlobal Dallas Helps Texas Businesses Strengthen Their Cybersecurity
At CyberGlobal Dallas, we understand the unique cybersecurity challenges Texas businesses face. As your local cybersecurity partner, we’re here to guide you through compliance, protect your data, and support your business at every step.
Our team helps organizations conduct detailed risk assessments, identifying vulnerabilities across your digital environment. We then assist with developing and implementing tailored security strategies that meet legal requirements and align with your business goals.
Here’s a look at some of our core services:
We simulate real-world attacks to uncover security weaknesses before cybercriminals can exploit them, helping you fix issues proactively.
Our 24/7 monitoring service detects, analyzes, and responds to threats in real time, keeping your systems secure around the clock.
We help update your internal policies and make sure your processes align with state and federal cybersecurity laws.
Our experts guide you in building a response plan that prepares your team for cyber incidents, with the aim of minimizing damage and downtime.
- Employee Training
We provide ongoing training programs that empower your staff to identify and respond to cybersecurity risks confidently.
If you’re ready to take your cybersecurity to the next level, contact CyberGlobal Dallas today. Our local team is ready to support your compliance journey and protect your business with reliable, expert-driven services.
