For Texas retailers, customer data is the lifeblood of personalization, loyalty programs, and business growth. But since the Texas Data Privacy and Security Act (TDPSA) came into full effect in July 2024, the rules for how this valuable data is collected and used have fundamentally changed.

The challenge for modern retail is clear: how do you create the data-driven, personalized experiences customers love, while fully respecting their new rights to privacy and control under the TDPSA?

The answer lies in shifting from a mindset of simple data extraction to one of a respectful, transparent exchange. Here are four essential strategies for Texas retail and e-commerce businesses to collect data safely and compliantly.

1. Master the "Opt-Out": Make It Clear and Easy

The TDPSA gives consumers a powerful right to opt out of their data being used for targeted advertising and the "sale" of personal data. For retailers who rely on personalized ads and loyalty partnerships, this is the most critical requirement to get right.

• The Strategy: Don't treat the opt-out as a hidden legal requirement. Make it a visible and easy part of your customer experience.

  • Provide a Conspicuous Link: Your website and app must have a clear link, such as "My Privacy Choices" or "Do Not Sell My Personal Information," typically in the footer.

  • Keep the Process Simple: The opt-out process itself should be straightforward and not require the customer to navigate a maze of menus or provide unnecessary information. A difficult opt-out process creates a terrible customer experience and signals to regulators that you are not acting in good faith.

2. Get Explicit "Opt-In" Consent for Precise Geolocation

Many retail apps use precise geolocation to offer features like "find a store near me" or to send location-based promotions. Under the TDPSA, precise geolocation data is classified as "sensitive data."

• The Strategy: You must obtain the user’s clear, affirmative consent (i.e., "opt-in") before you begin collecting this data. This requires a clear prompt on your mobile app (e.g., a pop-up when the app is first opened) that explains why you want the data and asks for an explicit "Allow" or "Don't Allow." This consent must be obtained separately and cannot be buried in a general terms of service agreement.

3. Make Data Protection Assessments (DPAs) a Standard Marketing Practice

The TDPSA mandates that businesses conduct and document a DPA for high-risk activities. For retailers, this directly applies to your core marketing functions.

• The Strategy: Integrate DPAs into your marketing workflow. You are required to conduct a DPA before you:

  • Engage in targeted advertising.

  • Sell personal data (which may include sharing data with certain loyalty partners).

  • Process sensitive data (like precise geolocation).

    A DPA is your internal process for weighing the benefits of these activities against the privacy risks to your customers and documenting the safeguards you have in place.

4. Practice "Shopping Cart" Data Minimization

The best way to reduce your data risk is to not collect unnecessary data in the first place.

• The Strategy: Review every field in your checkout process and account creation forms. Do you really need a customer's date of birth or gender to sell them a product? Every extra field you remove not only lowers your compliance burden under the TDPSA but also shortens the path to purchase, which can directly improve your conversion rates and customer experience.

Walla: The Secure POS for Your Customer Data

Think of your data platform as the secure Point-of-Sale (POS) system for your customer data. It needs to be reliable, secure, and built for modern compliance.

Walla provides the technology infrastructure to implement these strategies seamlessly:

• For Opt-Outs & Consent: Our secure forms and consent management tools provide a centralized, auditable way to manage customer opt-out preferences and capture the critical "opt-in" consent for sensitive data like geolocation.

• For DPAs & Security: Walla provides the foundational security—like end-to-end encryption and granular access controls—that you need to document in your DPAs. Our comprehensive audit trails provide tangible proof of your compliant practices.

• For Data Minimization: Our structured form-building tools encourage you to design lean, efficient data collection points that improve both CX and compliance.

Conclusion

For retailers and e-commerce brands in Texas, the TDPSA reframes data collection. It's a shift from a one-way transaction to a two-way relationship built on trust. By making privacy and control a seamless part of your customer experience, you not only comply with the law but also build the lasting loyalty that drives modern retail success.