Background
The Texas Legislature enacted Senate Bill 2420, the App Store Accountability Act, to help parents direct and supervise children’s downloads of apps and in-app purchases. The Act requires age verification, parental consent, and age rating and content display. The district court issued universal preliminary injunctions against the Act after applying strict scrutiny. The State of Texas sought a stay pending appeal.
The court’s reasoning
The court held that Texas made a strong showing that it is likely to succeed on the merits. First, the court reasoned that app store transactions are commercial in nature and subject to intermediate scrutiny under Central Hudson, not strict scrutiny. Second, the court found that the Act likely advances important governmental interests in protecting children’s data and safety with a reasonable fit. Third, the court noted that the emergency-services exception is likely content-neutral and that other exceptions can be severed. Fourth, the court found the statute’s terms are not unconstitutionally vague. Fifth, the court determined that a universal injunction likely falls outside the bounds of a federal court’s equitable authority and should be limited to the specific plaintiffs. Finally, the court found that Texas met the irreparable harm and public interest factors for a stay.
We grant the opposed motion because Texas has met its burden under Nken v. Holder.
Students Engaged in Advancing Texas v. Paxton, No. 25-51073 (5th Cir. June 4, 2026)
What it means going forward
The stay allows the State of Texas to enforce the App Store Accountability Act while the appeal proceeds, preventing the immediate implementation of the district court’s universal injunction.