On May 5, 2026, Texas Attorney General Ken Paxton announced an investigation into a U.S.-based drone wholesale company. In his press release, Paxton states that the drone company misrepresented its data privacy and security practices to consumers in violation of the Texas Deceptive Trade Practices Act and allegedly concealed ties to China.
“These products raise serious concerns, including unauthorized data collection, surveillance capabilities, and potential access by the Chinese government,” said Paxton. As part of the investigation, the Texas Attorney General’s Office has issued a civil investigative demand.
Paxton’s press release alleges that the drone company may be acting as a distributor for a Chinese-affiliated robotics company. On Feb. 17, 2026, Paxton sued the robotics company for allegedly misleading Texans about the origin, data practices, and security risks of drones. That lawsuit asserts that the robotics company misled consumers by failing to disclose that its drones use hardware, encrypted firmware, and software components from a firm with purported ties to China. The lawsuit further claims that the robotics company served as a passthrough for data collection and surveillance by the Chinese government.
The investigation into the drone wholesaler and the robotics company lawsuit are part of a broader effort by the Attorney General’s Office to “protect Texans from foreign adversaries that seek to exploit technology for surveillance and data collection.”
Key Takeaways
This investigation follows multiple lawsuits recently brought by Texas against companies with purported ties to China — including five lawsuits filed in February 2026 — involving data privacy and surveillance issues. Companies that partner or have common ownership with Chinese firms may face increased scrutiny by Texas regulators, particularly if their products have audio, visual, or other potential surveillance capabilities with components sourced from China. Companies may consider reviewing their supply chain logistics and marketing materials to help prevent misrepresentations to consumers regarding country-of-origin claims or business relationships with foreign firms.
