Cybersecurity Program Safe Harbor: Exemplary Damages Prohibited

Tex. Business and Commerce Code § 542.003, under Cybersecurity Program.

Tex. Business and Commerce Code § 542.003

Sec. 542.003. CYBERSECURITY PROGRAM SAFE HARBOR: EXEMPLARY DAMAGES PROHIBITED. Notwithstanding any other law, in an action arising from a breach of system security, a person harmed as a result of the breach may not recover exemplary damages from a business entity to which this chapter applies if the entity demonstrates that at the time of the breach the entity implemented and maintained a cybersecurity program in compliance with Section 542.004. Added by Acts 2025, 89th Leg., R.S., Ch. 1029 (S.B. 2610), Sec. 1, eff. September 1, 2025.