InfoBytes Blog
Texas enacts digital services bill to protect minors
On June 13, the Texas governor signed HB 18 to enact the Securing Children Online through Parental Empowerment (SCOPE) Act. The Act will require digital service providers to register a person’s age and, if the user is determined to be a minor (younger than 18 years of age), the provider is required to: (i) limit the collection of personal identifying information (PII) to what is reasonably necessary to provide the service; (ii) limit use of PII to the purpose for which it was collected; (iii) prevent the user from engaging in financial transactions through the digital service; (iv) prevent the user’s PII from being shared, disclosed, or sold; (v) not use the digital service to collect precise geolocation data on the user; or (vi) not use the digital service for targeted advertising. Digital service providers are also required to create tools for parents to control their minor children’s accounts and privacy settings and should reasonably attempt to limit advertising and algorithms that direct minors to harmful content.
SCOPE applies only to those who provide a digital service that enables minor users to socially interact with other users on the digital service and create, post, or share content. SCOPE outlines numerous exemptions, including exemptions for financial institutions, certain covered entities governed by the Health Insurance Portability and Accountability Act, certain persons subject to the Family Educational Rights and Privacy Act, and certain affiliates or subsidiaries of an internet service provider.
While the Act explicitly prohibits its use as a basis for a private right of action, it does grant the state attorney general exclusive authority to enforce the law (a violation of the Act is considered a deceptive act or practice). The Act takes effect September 1, 2024.