S.B. No. 2420, known as the "App Store Accountability Act," establishes new regulations for app stores in Texas regarding the sale and distribution of mobile applications, with a strong focus on age verification and the protection of minors. The bill requires app store owners to verify the age of users during account creation using commercially reasonable methods and to categorize users into specific age groups. Accounts for minors must be linked to a parent or guardian's account, and parental consent is necessary for minors to download or purchase applications. The bill also mandates that app store owners limit data collection to what is essential for age verification and consent, while employing industry-standard encryption for data transmission.

Additionally, the legislation imposes responsibilities on software application developers, requiring them to assign age ratings to their applications and disclose the content influencing these ratings to app stores. Developers must also notify app stores of significant changes to their terms of service or privacy policies that affect personal data collection. The bill emphasizes that personal data should only be used for age-related restrictions, legal compliance, and safety features, with violations classified as deceptive trade practices. The law 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 found invalid.

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