HB 4294 Introduced

Relating to the regulation of platforms for the sale and distribution of software applications for mobile devices; authorizing a civil penalty. 

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A BILL TO BE ENTITLED

 

AN ACT

 

relating to the regulation of platforms for the sale and

 

distribution of software applications for mobile devices;

 

authorizing a civil penalty.

 

       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 

       SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is

 

amended by adding Chapter 121 to read as follows:

 

CHAPTER 121.  SOFTWARE APPLICATIONS

 

SUBCHAPTER A.  GENERAL PROVISIONS

 

       Sec. 121.001.  DEFINITIONS. In this chapter:

 

             (1)  “Age category” means information collected by the

 

owner of an app store to designate a user based on the age

 

categories described by Section 121.021(b).

 

             (2)  “App store” means a publicly available Internet

 

website, software application, or other electronic service that

 

distributes software applications from the owner or developer of a

 

software application to the user of a mobile device.

 

             (3)  “Minor” means an individual who is younger than 18

 

years of age who has not had the disabilities of minority removed

 

for general purposes.

 

             (4)  “Mobile device” means a portable, wireless

 

electronic device, including a tablet or smartphone, capable of

 

transmitting, receiving, processing, and storing information

 

wirelessly that runs an operating system designed to manage

 

hardware resources and perform common services for software

 

applications on handheld electronic devices.

 

             (5)  “Personal data” means any information, including

 

sensitive data, that is linked or reasonably linkable to an

 

identified or identifiable individual. The term includes

 

pseudonymous data when the data is used by a person who processes or

 

determines the purpose and means of processing the data in

 

conjunction with additional information that reasonably links the

 

data to an identified or identifiable individual. The term does not

 

include deidentified data or publicly available information.

 

       Sec. 121.002.  RULES.  The attorney general shall adopt

 

rules to implement this chapter.

 

SUBCHAPTER B.  DUTIES OF APP STORES

 

       Sec. 121.021.  DUTY TO VERIFY AGE OF USER; AGE CATEGORIES.

 

(a) When an individual in this state creates an account with an app

 

store, the owner of the app store shall:

 

             (1)  request the individual’s age;

 

             (2)  use a commercially reasonable method of

 

verification to verify the individual’s age; and

 

             (3)  assign to the individual a designation described

 

by Subsection (b).

 

       (b)  The owner of an app store shall use the following age

 

categories for assigning a designation:

 

             (1)  an individual who is younger than 13 years of age

 

is considered a “child”;

 

             (2)  an individual who is at least 13 years of age but

 

younger than 17 years of age is considered a “teenager”;

 

             (3)  an individual who is 17 years of age is considered

 

an “older teenager”;

 

             (4)  an individual who is at least 18 years of age but

 

younger than 21 years of age is considered an “adult”; and

 

             (5)  an individual who is at least 21 years of age is

 

considered a “legal adult.”

 

       Sec. 121.022.  PARENTAL CONSENT REQUIRED. (a)  If the owner

 

of the app store determines under Section 121.021 that an

 

individual is a minor, the owner must obtain consent from the

 

minor’s parent or guardian before allowing the minor to:

 

             (1)  download a software application;

 

             (2)  purchase a software application; or

 

             (3)  make a purchase in or using a software

 

application.

 

       (b)  The owner of an app store must obtain consent for each

 

individual download or purchase sought by the minor.

 

       (c)  To obtain consent from a minor’s parent or guardian

 

under Subsection (a), the owner of an app store may use any

 

reasonable means to:

 

             (1)  disclose to the parent or guardian:

 

                   (A)  the specific software application or

 

purchase for which consent is sought;

 

                   (B)  the rating under Section 121.052 assigned to

 

the software application or purchase; and

 

                   (C)  the specific content or other elements that

 

led to the rating assigned under Section 121.052;

 

             (2)  give the parent or guardian a clear choice to give

 

or withhold consent for the download or purchase; and

 

             (3)  ensure that the consent is given by an individual

 

that the owner of the app store has verified is an adult who is the

 

parent or guardian of the minor.

 

       Sec. 121.023.  DISPLAY OF AGE RATING FOR SOFTWARE

 

APPLICATION. (a)  The owner of an app store that operates in this

 

state shall display for each software application available for

 

download and purchase on the app store:

 

             (1)  the rating under Section 121.052 assigned to the

 

software application; and

 

             (2)  the specific content or other elements that led to

 

the rating assigned under Section 121.052.

 

       (b)  The information displayed under this section must be

 

clear, accurate, and conspicuous.

 

       Sec. 121.024.  INFORMATION FOR SOFTWARE APPLICATION

 

DEVELOPERS. The owner of an app store that operates in this state

 

shall, consistent with the owner’s data collection practices, allow

 

the developer of a software application to access current

 

information related to:

 

             (1)  the age category assigned to each user under

 

Section 121.021(b); and

 

             (2)  whether consent has been obtained for each minor

 

user under Section 121.022.

 

       Sec. 121.025.  PARENT OVERSIGHT OF USAGE BY MINOR. The owner

 

of an app store that operates in this state, owns the operating

 

system of a mobile device, and provides parental controls to allow

 

users to enable certain content filters or limit software

 

application or mobile device usage shall take steps to make those

 

parental controls easy for a user to find and operate.

 

       Sec. 121.026.  CONSTRUCTION OF SUBCHAPTER. Nothing in this

 

subchapter may be construed to:

 

             (1)  prevent the owner of an app store that operates in

 

this state from taking reasonable measures to:

 

                   (A)  block, detect, or prevent the distribution

 

of:

 

                         (i)  obscene material, as that term is

 

defined by Section 43.21, Penal Code; or

 

                         (ii)  other material that may be harmful to

 

minors;

 

                   (B)  block or filter spam;

 

                   (C)  prevent criminal activity; or

 

                   (D)  protect the security of an app store or

 

software application;

 

             (2)  require the owner of an app store that operates in

 

this state to disclose a user’s personal data to the developer of a

 

software application except as provided by this subchapter; or

 

             (3)  allow the owner of an app store that operates in

 

this state to use a measure required by this chapter in a manner

 

that is arbitrary, capricious, anticompetitive, or unlawful.

 

SUBCHAPTER C.  DUTIES OF SOFTWARE APPLICATION DEVELOPERS

 

       Sec. 121.051.  APPLICABILITY OF SUBCHAPTER. This subchapter

 

applies only to the developer of a software application that the

 

developer makes available to users in this state through an app

 

store.

 

       Sec. 121.052.  DESIGNATION OF AGE RATING. (a) The developer

 

of a software application shall assign to each software application

 

and to each purchase that can be made through the software

 

application an age rating based on the age categories described by

 

Section 121.021(b).

 

       (b)  The developer of a software application shall provide to

 

each app store through which the developer makes the software

 

application available:

 

             (1)  each rating assigned under Subsection (a); and

 

             (2)  the specific content or other elements that led to

 

each rating provided under Subdivision (1).

 

       Sec. 121.053.  CHANGES TO SOFTWARE APPLICATIONS. The

 

developer of a software application shall provide notice to each

 

app store through which the developer makes the software

 

application available before making any change to the terms of

 

service or privacy policy of the software application that:

 

             (1)  affects or changes the rating assigned to the

 

software application under Section 121.052 or the content or

 

elements that led to that rating; or

 

             (2)  materially changes the functionality or user

 

experience of the software application.

 

       Sec. 121.054.  TIME RESTRICTION.  The developer of a

 

software application shall provide a readily available feature for

 

the parent or guardian of a minor to monitor and limit the amount of

 

time the minor spends using the application.

 

       Sec. 121.055.  AGE VERIFICATION.  (a)  The developer of a

 

software application shall create and implement a system to verify:

 

             (1)  for each user of the software application, the age

 

category assigned to that user under Section 121.021(b); and

 

             (2)  for each minor user of the software application,

 

whether consent has been obtained under Section 121.022.

 

       (b)  The developer of a software application shall use

 

information provided by the owner of an app store under Section

 

121.024 to perform the verification required by this section.

 

SUBCHAPTER D.  ENFORCEMENT

 

       Sec. 121.101.  CIVIL PENALTY; INJUNCTION.  (a)  A person who

 

violates this chapter is liable to this state for a civil penalty in

 

an amount not to exceed:

 

             (1)  $10,000; or

 

             (2)  if the court finds that the person knowingly or

 

repeatedly violated this chapter, $20,000.

 

       (b)  The attorney general may bring an action to:

 

             (1)  collect the penalty under this section;

 

             (2)  seek an injunction against further violation of

 

this chapter;

 

             (3)  seek an order from the court for the person to

 

disgorge any money received in violation of this chapter; and

 

             (4)  recover attorney’s fees and reasonable court

 

costs.

 

       Sec. 121.102.  PRIVATE CAUSE OF ACTION. (a)  The parent or

 

guardian of a minor who is a victim of a violation of this chapter

 

may bring an action against the owner of the app store or the

 

developer of a software application, as applicable.

 

       (b)  A parent or guardian of a minor who prevails in an action

 

under this section is entitled to recover:

 

             (1)  actual damages;

 

             (2)  injunctive relief; and

 

             (3)  attorney’s fees and reasonable court costs.

 

       SECTION 2.  (a) The attorney general shall adopt initial

 

rules to implement Chapter 121, Business & Commerce Code, as added

 

by this Act, not later than March 1, 2026.

 

       (b)  An action under Chapter 121, Business & Commerce Code,

 

as added by this Act, may not be brought before March 1, 2027.

 

       SECTION 3.  This Act takes effect September 1, 2025. 

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