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Bill

HB 5480

Relating to competition and transparency in digital advertising.

89th Legislature (2025) Introduced by Mitch Little

Texas bill establishing digital advertising platform transparency and competition standards to address potential anti-competitive practices in online ad markets.

Referred to Trade, Workforce & Economic Development
#advertising(s2680) #attorneygeneral(v2811) #business&commerce--general(i0050) #computers&software(s2425) #electronicinformationsystems(i0311) #statefinances--management&control(i0748)
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Bill Summary · HB 5480

Legislative bill overview

HB 5480 proposes regulations on digital advertising practices, focusing on competition and transparency requirements for digital advertising platforms and intermediaries. The bill aims to establish clearer disclosure rules and competitive safeguards within the online advertising ecosystem in Texas.

Why is this important

Digital advertising generates billions in revenue and significantly influences online commerce, content creation, and consumer behavior. Unclear or potentially anti-competitive practices in ad auctions, targeting, and placement can harm small businesses, advertisers, and consumers through inflated costs, reduced choice, and limited market access. Establishing transparency standards could level the playing field between large tech platforms and smaller market participants.

Potential points of contention

  • Compliance costs: Implementing new transparency and competition requirements may impose significant operational and compliance expenses on digital platforms, potentially raising advertising costs for all users
  • Definitional ambiguity: The bill's scope depends heavily on how "digital advertising," "platforms," and "anti-competitive" conduct are defined—overly broad definitions could capture legitimate business practices, while narrow definitions might miss harmful conduct
  • Federal preemption concerns: Digital advertising is largely governed by federal law and FTC regulations; Texas-specific rules could create conflicting compliance obligations or face legal challenges on interstate commerce grounds

Compiled from official sources — confirm details with the bill’s official record.

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