Do Texas Small Businesses Need a Privacy Policy? What You Really Need to Know
Do Texas Small Businesses Need a Privacy Policy? Here’s What You Need to Know
If you’re a small business owner, startup founder, or online seller in Texas, you’ve probably asked yourself: “Do I actually need a privacy policy?” It’s a fair question—especially as more states pass detailed privacy laws aimed at big companies, not small shops or solo entrepreneurs.
Here’s the real answer:
Most Texas small businesses are not required by state or federal law to post a privacy policy. However, every Texas business, no matter how small, must comply with the Texas Deceptive Trade Practices Act (DTPA).
And under the DTPA, failing to clearly explain how you collect and use customer information can be considered deceptive.
Texas Doesn’t Require Privacy Policies — But the DTPA Still Applies
Texas has no general privacy law requiring every business to publish a privacy policy. Even Texas’s new data privacy law exempts many small businesses unless they sell sensitive data.
But the DTPA applies to every Texas business, regardless of size, revenue, or number of customers. That means:
Misleading statements are prohibited
Confusing explanations are prohibited
Omitting important facts is also prohibited
In the privacy context, this often means:
Not telling customers what information you collect
Not disclosing tracking or analytics tools
Not explaining how you use customer information
Saying “we don’t share data” when third-party tools actually receive it
Any of these omissions may constitute deceptive conduct under the DTPA.
Real Examples of DTPA Issues in Everyday Small Businesses
1. Surprise Marketing Emails
A customer provides their email for a free downloadable resource. Then they start receiving weekly marketing emails they didn’t expect.
If that marketing use wasn’t disclosed, it’s a transparency issue.
2. Hidden Tracking or Analytics Tools
Most websites use tools like:
Google Analytics
Meta Pixel
Heat mapping tools
Retargeting ads
If customers aren’t told these tools are active, that omission can violate the DTPA.
3. “We Don’t Share Data” (But You Actually Do)
Even very small businesses share information with:
Payment processors
Email marketing services
Website hosting platforms
Scheduling apps
If you use these tools, you do share data in some way — and your website must reflect that.
Why a Privacy Policy Protects Your Business
Even though you may not be required to have one, a privacy policy:
Helps ensure you meet DTPA transparency requirements
Sets clear expectations with your customers
Reduces confusion and complaints
Builds trust
Makes online platforms (Shopify, Google Ads, Meta Ads, etc.) happier
Shows professionalism
A privacy policy is one of the simplest, least expensive risk-reduction tools available to small businesses.
Quick Checklist: Do You Collect Any of This Information?
If you do, you should have a privacy policy:
Names or email addresses
Payment information
Contact form submissions
Online bookings
Website analytics
Tracking pixels
Newsletter or marketing sign-ups
Customer accounts or members
Shipping information
Most modern Texas businesses collect at least a few of these.
Bottom Line
Even if you’re exempt from complex privacy laws, you are never exempt from the transparency requirements of the DTPA. A simple privacy policy written in plain English helps you meet those expectations and protects your business from misunderstandings.
Have questions about your privacy practices?
Schedule a meeting — we're happy to help you sort it out.
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 the law depends on the specific facts of each situation. Reading this post does not create an attorney-client relationship with Fair Winds Law PLLC.