S.B. No. 2420, known as the "App Store Accountability Act," introduces comprehensive regulations for app stores in Texas, focusing on the protection of minors and the management of personal data. The bill requires app store owners to verify the age of users during account creation, categorizing them into age groups and mandating parental consent for downloads and purchases by minors. Additionally, app stores must display age ratings and content notices for applications, ensuring transparency in data usage while limiting data collection to what is necessary for age verification and consent processes. App store owners can be held accountable for violations but are protected from liability if they adhere to industry standards.

The legislation also imposes new responsibilities on software application developers, requiring them to assign age ratings, disclose content influencing these ratings, and notify app stores of significant changes to their terms of service or privacy policies. Developers must implement age verification systems and restrict personal data usage to compliance-related purposes. Penalties for violations include misrepresentation of age ratings and improper data sharing, with such violations classified as deceptive trade practices. The bill is set to take effect on January 1, 2026, and includes a severability clause to maintain the validity of remaining provisions if any part is invalidated.

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