Supreme Court Rules In Favor of Texas App Store Accountability Act, Delivering Major Win for Texas Families

The United States Supreme Court ruled that Texas can continue enforcing the App Store Accountability Act (SB 2420) while the Fifth Circuit appeal continues. The Supreme Court’s ruling flatly rejects the latest attempt by the Computer & Communications Industry Association (CCIA) – Apple and Google’s trade association – to block a law that will finally hold app stores and developers accountable by ensuring children cannot enter contracts without parental consent. 

SB 2420, which is supported by 79% of Texas parents, requires app stores to securely verify users’ ages and obtain parental consent for minors’ app downloads and purchases. A district court judge temporarily blocked the law in December, but the Fifth Circuit Court of Appeals rightly reversed course in May, rejecting the lower court’s argument and allowing the law to go into effect. Today’s Supreme Court decision means that reversal holds, giving Texas parents critical tools to better protect their children online.

“The Supreme Court’s decision, without a single dissent, allowing the Texas App Store Accountability Act to remain in effect is a major victory for families and underscores what we have known all along: Big Tech’s claims of constitutional harms were always overblown,” said John Read, Senior Policy Counsel for the Digital Childhood Alliance. “The App Store Accountability Act gives parents critical tools to protect their children online, and the Constitution recognizes a parent’s right to parent.” 

When the Fifth Circuit ruled to allow SB 2420 to take effect, the court found that “app store transactions are commercial in nature” – affirming that the law is about commerce, not speech. On the question of whether Texas has a legitimate interest in protecting children from the commercial ecosystem, the Fifth Circuit was direct: Texas has “a substantial, if not compelling, interest in protecting children,” and “parents need to have the necessary information to make informed choices affecting their children’s upbringing.” SB 2420, the court concluded, “directly and materially advances” that interest.

The constitutional support for SB 2420 grew tremendously when a bipartisan coalition of 27 state attorneys general filed a brief urging the justices to let the law stand, arguing that parental rights over children’s digital lives are “perhaps the oldest of the fundamental liberty interests” recognized by the Supreme Court. As for Big Tech’s First Amendment claims, the attorneys general were blunt: “Petitioners may prefer unregulated access to children to enter complex contracts as a condition of access, but the Free Speech Clause does not protect that preferred business model.”

State Senator Angela Paxton applauded the Supreme Court’s decision. “The Texas App Store Accountability Act (SB 2420), which requires common sense age verification and parental consent for minors to download apps, helps empower Texas parents and demands real transparency from Big Tech companies in order to better protect Texas children online. I am pleased to see the Supreme Court was moved by the merits of our argument and is allowing these critical protections to remain in place for Texas families as we wait for a final ruling from the Fifth Circuit.”

State Representative Caroline Fairly highlighted SB 2420’s bipartisan support against Big Tech and special interests. “The Supreme Court has just firmly sided with the Fifth Circuit to keep the App Store Accountability Act in effect, despite big tech’s best efforts to thwart the will of Texas parents. Protecting Texas kids and giving parents real tools is a common sense goal that nearly 30 states have supported. Despite the special interests and opposition, Texas will never give up the fight to protect kids and empower parents.”

The Fifth Circuit will now consider the full merits of the constitutional challenge, with oral arguments expected later this year. Alabama, Louisiana, and Utah have each passed similar app store accountability laws, and the outcome of this case will shape the legal landscape for child online safety legislation across the country. 

David Dunmoyer of the Texas Public Policy Foundation (TPPF) championed the ruling and urged Congress to follow Texas’ lead to pass the App Store Accountability Act. “The App Store Accountability Act addresses a danger extending far beyond Texas: children are being harmed while Big Tech companies are bypassing parents for pecuniary gain. By allowing this law to remain in effect, the Supreme Court recognizes the Fifth Circuit’s strong arguments defending the law’s constitutionality. As Congress and the White House look to finalize a federal child safety package, this new fold makes it even more practical to follow the lead of Texas and help make the App Store Accountability Act a tool for every family across the country.”

Today’s decision also comes as Congress considers a federal App Store Accountability Act, which passed out of the House Energy and Commerce Committee earlier this year and would extend these same protections to families in every state. The Supreme Court’s refusal to block the Texas law sends a clear signal to lawmakers on Capitol Hill that the constitutional path forward is open and the time for bipartisan action to empower parents and protect kids is now.