Selling Online? Your Customers’ State Privacy Laws May Apply to You
When you run an online store—whether on Shopify, Etsy, WooCommerce, or through your own website—you’re not just selling in Texas anymore. You’re selling to anyone who can access your site. And that raises a big question:
Do the privacy laws of other states apply to your Texas business?
In some cases, yes.
In other cases, you’re exempt.
But in every case, the Texas Deceptive Trade Practices Act (DTPA) still requires transparency about what data you collect and how you use it.
Let’s break down what matters most for small business owners and online sellers.
Your Website Has No Geographic Boundary
Even if your physical business exists only in Texas, your online store is available nationwide. That means people from California, Colorado, Virginia, Connecticut, and other states with strict privacy laws may browse, purchase, or submit their information.
Some of these laws apply only to larger companies.
Others are stricter.
But nearly all of them expect clear disclosure, especially regarding:
What data you collect
Tracking and analytics
Targeted advertising
Third-party integrations
And even if another state’s law doesn’t apply to you, the lack of disclosure can still violate the Texas DTPA.
Which States Have Privacy Laws That Might Impact You?
Here’s a simple breakdown:
California (CCPA/CPRA)
Often does not apply to small businesses unless you hit:
$25M+ revenue
100,000+ consumers
Or earn 50%+ from selling data
But California consumers expect strong privacy notices, and many platforms require them.
Colorado, Connecticut, Virginia, Utah, Oregon
Most small businesses do not meet their thresholds (e.g., 100,000+ consumers per year).
But these states still influence best practices for transparency.
Delaware (2025)
Lower thresholds that could affect smaller online sellers.
Texas (TDPSA, 2024)
Exempts many small businesses unless they sell sensitive data.
But this law doesn’t replace the DTPA—and the DTPA has no small business exemption.
Why the DTPA Still Matters (Even When Other States Don’t Apply)
The Texas Deceptive Trade Practices Act prohibits misleading or confusing statements. This includes privacy practices.
❗ If you fail to disclose how you collect or use personal information, a customer can argue they were misled — even if you violated no other privacy law.
Examples:
1. Not Disclosing Tracking/Analytics Tools
Online sellers commonly use:
Google Analytics
Meta Pixel
TikTok Pixel
Retargeting ads
These tools automatically collect customer behavior.
If your website does not tell visitors this is happening, that omission may be misleading under the DTPA.
2. Email Marketing Without Clear Disclosure
If someone signs up for a free download and ends up on a newsletter list without warning, that is a transparency problem.
3. Saying “We Don’t Share Data” When You Actually Do
Using Shopify, Etsy, Stripe, Square, PayPal, or Mailchimp means you are sharing data.
Even if it’s automatic, it must be disclosed.
Online Sellers Are at Highest Risk for Unintentional Non-Disclosure
E-commerce stores and digital product businesses collect more information than many owners realize:
Customer names
Addresses
Email addresses
Payment information
Shopping behavior
IP addresses
Browsing activity
Abandoned cart details
Not explaining these uses can violate the DTPA—even if you’re exempt from other states' laws.
What You Should Disclose as an Online Seller
Here are the essentials every Texas online business should explain:
✔ What information you collect
✔ How you use customer information
✔ Who receives customer data (third-party services)
✔ What tracking tools you use
✔ How customers can opt out of marketing
✔ How customers can contact you
This is not about heavy legal compliance—it’s about clarity and honesty.
Simple Checklist for Online Sellers
If you answer yes to ANY of these, you should have a privacy policy:
You sell products outside Texas
You collect emails
You use Google Analytics or Meta Pixel
You run ads on Meta or Google
You accept payments online
You use Shopify, Etsy, or Wix
You use a scheduling or CRM tool
You have contact forms on your website
Bottom Line
You may be exempt from complex privacy regulations—but you are never exempt from the Texas DTPA.
Having a privacy policy ensures transparency, prevents misunderstandings, and protects your business as it grows online.
Not sure what your online store should disclose? Schedule a meeting — we’ll walk through it together.
Legal Disclaimer: The information in this blog is provided for general educational purposes only and does not constitute legal advice. Laws and regulations change frequently, and the application of law depends on the specific facts of each situation. Reading this post does not create an attorney-client relationship with Fair Winds Law PLLC.