According to a new study, there's still a lot the Lone Star State needs to do to protect its citzens online. Getty Images

If Texas' standards for online privacy were graded, the Lone Star State would earn an "F," a new study indicates.

An analysis of online privacy laws in the 50 states shows Texas adheres to only five (25 percent) of the 20 privacy standards examined by pro-consumer tech research website Comparetech. Just two states surpassed the 50 percent mark — California (75 percent) and Delaware (55 percent). At 5 percent, Wyoming was ranked the worst state for online privacy protection laws.

Texas did, however, have some redeeming qualities. The state has laws on the books regarding how companies dispose of consumers' data, how organizations protect data about students in kindergarten through 12th grade, how biometric data is protected, and how journalists are shielded from revealing their sources, according to Comparetech.

Ranking 23rd in the Comparetech study, Texas fell short in areas such as social media privacy, security of insurance data, third-party sharing of data, and disclosure of what types of data companies collect about consumers.

"Texas still has a long way to go in protecting its residents' privacy, particularly when it comes to how companies and government entities can collect, use, and share personal data," says Paul Bischoff, a privacy advocate with Comparetech.

During Texas' 2019 legislative session, one comprehensive measure aimed at tightening online privacy laws, the Texas Consumer Privacy Act, failed to reach the governor's desk.

However, lawmakers passed and Gov. Greg Abbott signed the Texas Privacy Protection Act. This law, far less sweeping than the Texas Consumer Privacy Act, revises notification requirements under the Texas Identity Theft Enforcement and Protection Act, according to the Data Privacy Monitor blog. It also establishes the 15-member Texas Privacy Protection Advisory Council, which will recommend future legislation tied to data privacy.

In Texas, Bischoff says, companies still "have few restrictions on how they are allowed to gather information from users, how long that data can be retained, and with whom it can be shared. Likewise, government entities like schools and law enforcement are not bound by laws that would prevent them from invading people's privacy."

He notes, however, that Texas is among only four states that protect biometric data such as fingerprints and facial-recognition scans.

Among all the states, California "sets a fairly high bar" for protection of online privacy, Bischoff says, but even it fails to meet all of the pro-privacy criteria set out in the Comparetech study.

Around the country, most people support beefing up state laws governing online privacy, he says, "but technology has outpaced legislation, so many states just need time to catch up."

Some Americans, though, doubt that any laws can safeguard their online privacy. In a 2019 survey commissioned by privacy-technology company FigLeaf Inc., 29 percent of U.S. adults said they thought it was impossible to safeguard their digital information.

"Without question, consumers are telling us that online privacy is important to them. However, far too many believe online privacy is difficult, if not impossible, to achieve," Slava Kolomeichuk, co-founder and CEO of Deerfield, Illinois-based FigLeaf, says in a news release. "This attitude is resulting in individuals who are choosing to restrict their own online activity, which limits their personal freedom. Unfortunately, current tools do not give consumers the assurance they need that it is possible to control one's own online privacy."

Control of online privacy is a serious concern for U.S. adults. In a 2019 survey by SurveyMonkey, 58 percent of adults viewed online privacy as a crisis. For Texans, this concern won't be addressed by state lawmakers until the Legislature reconvenes in 2021. Meanwhile, federal lawmakers aren't expected to take action this year on an online privacy bill.

U.S. Sen. Richard Wicker, a Mississippi Republican who chairs the Senate Commerce Committee, is one of the main sponsors of the federal privacy legislation. He says Americans deserve the same online protections regardless of where in the U.S. they live or travel.

"That means internet privacy regulations should not vary across state lines," Wicker says on his website. "Not only would 50 different privacy standards leave Americans uncertain about what is being done with their data, but a patchwork of state-level interventions could also lead to uncertainty for businesses, bad internet service, and slower economic growth."
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Houston startup taps strategic partner to produce novel 'biobased leather'

cleaner products

A Houston-based next-gen material startup has revealed a new strategic partnership.

Rheom Materials, formerly known as Bucha Bio, has announced a strategic partnership with thermoplastic extrusion and lamination company Bixby International, which is part of Rheom Material’s goal for commercial-scale production of its novel biobased material, Shorai.

Shorai is a biobased leather alternative that meets criteria for many companies wanting to incorporate sustainable materials. Shorai performs like traditional leather, but offers scalable production at a competitive price point. Extruded as a continuous sheet and having more than 92 percent biobased content, Shorai achieves an 80 percent reduction in carbon footprint compared to synthetic leather, according to Rheom.

Rheom, which is backed by Houston-based New Climate Ventures, will be allowing Bixby International to take a minority ownership stake in Rheom Materials as part of the deal.

“Partnering with Bixby International enables us to harness their extensive expertise in the extrusion industry and its entire supply chain, facilitating the successful scale-up of Shorai production,” Carolina Amin Ferril, CTO at Rheom Materials, says in a news release. “Their highly competitive and adaptable capabilities will allow us to offer more solutions and exceed our customers’ expectations.”

In late 2024, Rheom Materials started its first pilot-scale trial at the Bixby International facilities with the goal of producing Shorai for prototype samples.

"The scope of what we were doing — both on what raw materials we were using and what we were creating just kept expanding and growing," founder Zimri Hinshaw previously told InnovationMap.

Listen to Hinshaw on the Houston Innovators Podcast episode recorded in October.

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.