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Texas Regulatory Landscape 'Riskier Than Ever,' Lawyers Say

The regulatory landscape in Texas after the U.S. Supreme Court’s decision in Free Speech v. Paxton and this year’s enactment of a Texas app store age-verification bill “is more complex and riskier than ever,” Kohrman Jackson attorneys blogged Wednesday.

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The age-verification bill (SB-2420), which prohibits kids younger than 18 from downloading certain apps or making in-app purchases without parental consent, is set to take effect on Jan. 1. However, the Computer & Communications Industry Association (CCIA) last month challenged the law in court (see 2510160034). Industry groups say the law raises privacy concerns and will come with high compliance costs (see 2510160034).

But after the Supreme Court’s 6-3 Paxton decision last June (see 250627004), where SCOTUS “determined that ‘intermediate scrutiny’ applied to test the constitutionality of state age-verification laws, there is now a clearer path for states to defend well-tailored regulation,” wrote Kohrman Jackson lawyers Chris Herrel and Brett Krantz.

“Texas has opened a new front in the battle over digital regulation, one that will shape national trends and pose ongoing challenges,” the lawyers said. “The next chapter will be written in the courts” and “state legislatures, and in the ongoing push-pull between privacy, safety and freedom online.”