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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of platforms for the sale and |
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distribution of software applications for mobile devices; |
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authorizing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 121 to read as follows: |
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CHAPTER 121. SOFTWARE APPLICATIONS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 121.001. DEFINITIONS. In this chapter: |
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(1) "Age category" means information collected by the |
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owner of an app store to designate a user based on the age |
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categories described by Section 121.021(b). |
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(2) "App store" means a publicly available Internet |
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website, software application, or other electronic service that |
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distributes software applications from the owner or developer of a |
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software application to the user of a mobile device. |
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(3) "Minor" means an individual who is younger than 18 |
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years of age who has not had the disabilities of minority removed |
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for general purposes. |
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(4) "Mobile device" means a portable, wireless |
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electronic device, including a tablet or smartphone, capable of |
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transmitting, receiving, processing, and storing information |
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wirelessly that runs an operating system designed to manage |
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hardware resources and perform common services for software |
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applications on handheld electronic devices. |
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(5) "Personal data" means any information, including |
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sensitive data, that is linked or reasonably linkable to an |
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identified or identifiable individual. The term includes |
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pseudonymous data when the data is used by a person who processes or |
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determines the purpose and means of processing the data in |
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conjunction with additional information that reasonably links the |
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data to an identified or identifiable individual. The term does not |
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include deidentified data or publicly available information. |
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Sec. 121.002. RULES. The attorney general shall adopt |
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rules to implement this chapter. |
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SUBCHAPTER B. DUTIES OF APP STORES |
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Sec. 121.021. DUTY TO VERIFY AGE OF USER; AGE CATEGORIES. |
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(a) When an individual in this state creates an account with an app |
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store, the owner of the app store shall: |
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(1) request the individual's age; |
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(2) use a commercially reasonable method of |
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verification to verify the individual's age; and |
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(3) assign to the individual a designation described |
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by Subsection (b). |
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(b) The owner of an app store shall use the following age |
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categories for assigning a designation: |
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(1) an individual who is younger than 13 years of age |
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is considered a "child"; |
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(2) an individual who is at least 13 years of age but |
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younger than 17 years of age is considered a "teenager"; |
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(3) an individual who is 17 years of age is considered |
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an "older teenager"; |
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(4) an individual who is at least 18 years of age but |
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younger than 21 years of age is considered an "adult"; and |
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(5) an individual who is at least 21 years of age is |
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considered a "legal adult." |
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Sec. 121.022. PARENTAL CONSENT REQUIRED. (a) If the owner |
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of the app store determines under Section 121.021 that an |
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individual is a minor, the owner must obtain consent from the |
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minor's parent or guardian before allowing the minor to: |
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(1) download a software application; |
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(2) purchase a software application; or |
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(3) make a purchase in or using a software |
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application. |
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(b) The owner of an app store must obtain consent for each |
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individual download or purchase sought by the minor. |
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(c) To obtain consent from a minor's parent or guardian |
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under Subsection (a), the owner of an app store may use any |
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reasonable means to: |
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(1) disclose to the parent or guardian: |
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(A) the specific software application or |
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purchase for which consent is sought; |
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(B) the rating under Section 121.052 assigned to |
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the software application or purchase; and |
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(C) the specific content or other elements that |
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led to the rating assigned under Section 121.052; |
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(2) give the parent or guardian a clear choice to give |
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or withhold consent for the download or purchase; and |
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(3) ensure that the consent is given by an individual |
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that the owner of the app store has verified is an adult who is the |
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parent or guardian of the minor. |
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Sec. 121.023. DISPLAY OF AGE RATING FOR SOFTWARE |
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APPLICATION. (a) The owner of an app store that operates in this |
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state shall display for each software application available for |
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download and purchase on the app store: |
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(1) the rating under Section 121.052 assigned to the |
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software application; and |
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(2) the specific content or other elements that led to |
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the rating assigned under Section 121.052. |
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(b) The information displayed under this section must be |
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clear, accurate, and conspicuous. |
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Sec. 121.024. INFORMATION FOR SOFTWARE APPLICATION |
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DEVELOPERS. The owner of an app store that operates in this state |
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shall, consistent with the owner's data collection practices, allow |
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the developer of a software application to access current |
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information related to: |
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(1) the age category assigned to each user under |
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Section 121.021(b); and |
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(2) whether consent has been obtained for each minor |
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user under Section 121.022. |
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Sec. 121.025. PARENT OVERSIGHT OF USAGE BY MINOR. The owner |
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of an app store that operates in this state, owns the operating |
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system of a mobile device, and provides parental controls to allow |
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users to enable certain content filters or limit software |
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application or mobile device usage shall take steps to make those |
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parental controls easy for a user to find and operate. |
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Sec. 121.026. CONSTRUCTION OF SUBCHAPTER. Nothing in this |
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subchapter may be construed to: |
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(1) prevent the owner of an app store that operates in |
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this state from taking reasonable measures to: |
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(A) block, detect, or prevent the distribution |
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of: |
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(i) obscene material, as that term is |
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defined by Section 43.21, Penal Code; or |
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(ii) other material that may be harmful to |
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minors; |
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(B) block or filter spam; |
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(C) prevent criminal activity; or |
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(D) protect the security of an app store or |
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software application; |
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(2) require the owner of an app store that operates in |
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this state to disclose a user's personal data to the developer of a |
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software application except as provided by this subchapter; or |
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(3) allow the owner of an app store that operates in |
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this state to use a measure required by this chapter in a manner |
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that is arbitrary, capricious, anticompetitive, or unlawful. |
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SUBCHAPTER C. DUTIES OF SOFTWARE APPLICATION DEVELOPERS |
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Sec. 121.051. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies only to the developer of a software application that the |
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developer makes available to users in this state through an app |
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store. |
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Sec. 121.052. DESIGNATION OF AGE RATING. (a) The developer |
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of a software application shall assign to each software application |
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and to each purchase that can be made through the software |
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application an age rating based on the age categories described by |
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Section 121.021(b). |
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(b) The developer of a software application shall provide to |
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each app store through which the developer makes the software |
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application available: |
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(1) each rating assigned under Subsection (a); and |
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(2) the specific content or other elements that led to |
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each rating provided under Subdivision (1). |
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Sec. 121.053. CHANGES TO SOFTWARE APPLICATIONS. The |
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developer of a software application shall provide notice to each |
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app store through which the developer makes the software |
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application available before making any change to the terms of |
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service or privacy policy of the software application that: |
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(1) affects or changes the rating assigned to the |
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software application under Section 121.052 or the content or |
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elements that led to that rating; or |
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(2) materially changes the functionality or user |
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experience of the software application. |
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Sec. 121.054. TIME RESTRICTION. The developer of a |
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software application shall provide a readily available feature for |
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the parent or guardian of a minor to monitor and limit the amount of |
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time the minor spends using the application. |
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Sec. 121.055. AGE VERIFICATION. (a) The developer of a |
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software application shall create and implement a system to verify: |
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(1) for each user of the software application, the age |
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category assigned to that user under Section 121.021(b); and |
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(2) for each minor user of the software application, |
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whether consent has been obtained under Section 121.022. |
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(b) The developer of a software application shall use |
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information provided by the owner of an app store under Section |
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121.024 to perform the verification required by this section. |
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SUBCHAPTER D. ENFORCEMENT |
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Sec. 121.101. CIVIL PENALTY; INJUNCTION. (a) A person who |
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violates this chapter is liable to this state for a civil penalty in |
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an amount not to exceed: |
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(1) $10,000; or |
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(2) if the court finds that the person knowingly or |
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repeatedly violated this chapter, $20,000. |
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(b) The attorney general may bring an action to: |
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(1) collect the penalty under this section; |
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(2) seek an injunction against further violation of |
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this chapter; |
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(3) seek an order from the court for the person to |
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disgorge any money received in violation of this chapter; and |
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(4) recover attorney's fees and reasonable court |
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costs. |
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Sec. 121.102. PRIVATE CAUSE OF ACTION. (a) The parent or |
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guardian of a minor who is a victim of a violation of this chapter |
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may bring an action against the owner of the app store or the |
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developer of a software application, as applicable. |
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(b) A parent or guardian of a minor who prevails in an action |
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under this section is entitled to recover: |
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(1) actual damages; |
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(2) injunctive relief; and |
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(3) attorney's fees and reasonable court costs. |
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SECTION 2. (a) The attorney general shall adopt initial |
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rules to implement Chapter 121, Business & Commerce Code, as added |
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by this Act, not later than March 1, 2026. |
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(b) An action under Chapter 121, Business & Commerce Code, |
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as added by this Act, may not be brought before March 1, 2027. |
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SECTION 3. This Act takes effect September 1, 2025. |