Students Engaged in Advancing Texas v. Ken Paxton

Court of Appeals for the Fifth Circuit·Decided July 24, 2026·No. 25-50096·Published

Opinion

Case: 24-50721 Document: 186-1 Page: 1 Date Filed: 07/24/2026

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

_____________ FILED July 24, 2026 No. 24-50721 Lyle W. Cayce _____________ Clerk

Computer & Communications Industry Association; NetChoice, L.L.C.,

Plaintiffs—Appellees,

versus

Ken Paxton, Attorney General, State of Texas,

Defendant—Appellant,

consolidated with _____________

No. 25-50096 _____________

Students Engaged in Advancing Texas; M.F., by and through next friend, Vanessa Fernandez; Ampersand Group, L.L.C.; Brandon Closson,

Defendant—Appellant. ______________________________ Case: 24-50721 Document: 186-1 Page: 2 Date Filed: 07/24/2026

Appeal from the United States District Court for the Western District of Texas USDC Nos. 1:24-CV-849, 1:24-CV-945 ______________________________

Before Higginbotham, Ho, and Douglas, Circuit Judges. Dana M. Douglas, Circuit Judge: This case concerns two pre-enforcement challenges to Texas House Bill 18 (“H.B. 18”), “The Securing Children Online through Parental Empowerment Act,” which regulates social media websites. First, the nonprofit organizations Computer & Communications Industry Association (“CCIA”) and NetChoice, L.L.C. (“NetChoice”) (collectively, “the CCIA plaintiffs”) challenged all of H.B. 18 as a content- based law. They focused their challenge on the law’s requirement that certain social media-based “digital service providers” (“DSPs”) monitor and filter content accessible to known minors to prevent exposure to several categories of potentially harmful speech (“the monitoring and filtering requirement”). Second, nonprofit organization Students Engaged in Advancing Texas (“SEAT”), two individual Texans, and advertising firm The Ampersand Group (“Ampersand”) (collectively, “the SEAT plaintiffs”) challenged the same monitoring and filtering requirement. They also challenged H.B. 18’s language that mandates covered DSPs to make users register their ages before creating accounts (“the age-registration requirement”), to not display targeted advertisements to known minors (“the targeted ads requirement”), and to make a commercially reasonable effort to prevent advertisers from targeting known minors with advertisements facilitating, promoting, or offering unlawful products, services, or activities (“the unlawful ads requirement”), and that mandates all DSPs to monitor their content and, if more than one-third of it is obscene

2 Case: 24-50721 Document: 186-1 Page: 3 Date Filed: 07/24/2026

24-50721 c/w No. 25-50096

for adults or minors under Texas law, verify that users accessing their digital service are 18 or older (“the age-verification requirement”). In both cases, the plaintiffs moved for a preliminary injunction. The district court granted the motions except as to the age-registration requirement and the other provisions not specifically challenged. Texas Attorney General Paxton appealed the preliminary injunction orders, and we consolidated the cases for appeal. We hold that the SEAT plaintiffs do not have standing to challenge the monitoring and filtering, targeted ads, and unlawful ads requirements, and that their challenge to the age-verification requirement is now foreclosed by precedent. The monitoring and filtering requirement challenged by the CCIA plaintiffs, however, is preempted by Section 230 of the Communications Decency Act of 1996 (“CDA”), 47 U.S.C. § 230(c)(1). We therefore VACATE and REMAND in part, and AFFIRM in part. I A H.B. 18, which took effect on September 1, 2024, imposes requirements on DSPs. Tex. Bus. & Com. Code §§ 509.001–.152; see Computer & Commc’ns Indus. Ass’n v. Paxton, 747 F. Supp. 3d 1011 (W.D. Tex. 2024) (enjoining certain provisions of H.B. 18 before it took effect). It defines DSPs as persons who “own[ ] or operate[ ] a digital service” and determine the purpose and means of collecting and processing personal identifying information of users of the digital service. Tex. Bus. & Com. Code § 509.001(2). With the exception of its age-verification requirement, H.B. 18 applies only to DSPs whose digital service “connects users in a manner that allows users to socially interact with other users on the digital service,” “allows a user to create a public or semi-public profile for purposes of signing into and using the digital service,” and “allows a user to create or

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post content that can be viewed by other users of the digital service,” including via a message board, chat room, or other “landing page, video channel, or main feed that presents to a user content created and posted by other users.” Id. § 509.002.1 H.B. 18’s monitoring and filtering requirement mandates covered DSPs to develop and implement a strategy to prevent known minors’ exposure to “harmful material” and other content “that promotes, glorifies, or facilitates” “suicide, self-harm, or eating disorders”; “substance abuse”; “stalking, bullying, or harassment”; and “grooming, trafficking, child pornography, or other sexual exploitation or abuse.” Id. § 509.053. “Harmful material” is defined with reference to its definition in the Texas Penal Code. Id. § 509.001(3); Tex. Penal Code § 43.24(a)(2). H.B. 18’s targeted ads requirement forbids covered DSPs from using a digital service to display “targeted advertising” to a minor without the consent of a verified parent. Tex. Bus. & Com. Code § 509.052(2)(D). H.B. 18’s unlawful ads requirement mandates covered DSPs to make a commercially reasonable effort to prevent advertisers from targeting known minors with advertisements “that facilitate, promote, or offer a

_____________________ 1 H.B. 18 exempts from its coverage state and local government websites, financial institutions, medical websites, small businesses, higher education websites, employee management software, school education software, and e-mail and direct messaging services that provide only those services. Tex. Bus. & Com. Code § 509.002(b). H.B. 18 also exempts digital services that “primarily function[ ] to provide a user with access to news, sports, commerce, or content primarily generated or selected by the [DSP]” and provide only incidental social functions. Id. § 509.002(b)(10).

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product, service, or activity that is unlawful for a minor in [Texas] to use or engage in.” Id. § 509.055. H.B. 18’s age-verification requirement mandates every DSP to monitor its content and, if it determines that it publishes or distributes material more than one-third of which is “harmful material or obscene” as defined by Texas law, use a commercially reasonable method to verify the age of any person seeking to access content through its digital service to confirm that they are 18 years of age or older, and deny access to those who are not. Id. § 509.057. H.B. 18 may be enforced by means of (1) a deceptive trade practice action brought by the Consumer Protection Division of the Texas Attorney General’s Office, or (2) an action for a declaratory judgment or injunction brought by the parent or guardian of a known minor “affected by” a violation. Id. §§ 509.151–.152. B CCIA is a nonprofit organization that promotes open markets, systems, and networks.

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