Texas Business Attorney

The Texas Deceptive Trade Practices Act

The Teas Deceptive Trade Practices Act, or DTPA, is a broad statute intended to protect consumers from unfair or misleading practices by providers of goods or services, including such things as fraud, breaches of warranty, and false statements. Enacted in 1973, the DTPA is enforceable in both the public and private arenas, by the Texas Attorney General's Office and private attorneys, respectively.

What the DTPA Covers

The DTPA is a very expansive body of law; it applies to most business transactions, with one notable exception being services provided in a "consultant" context – that is, services which provide advice or opinions, such as a stockbroker giving a client his viewpoint on good stocks to buy or sell.

Because its scope is so broad, the language of the DTPA is constantly being reinterpreted. For example, the Act declares that it covers practices undertaken during "any trade or commerce." This simple phrase has been interpreted to encompass the sale or distribution of goods, or tangible properties, and services, or work and labor.

Another potentially controversial term used throughout the DTPA is the word "unconscionable." The DTPA uses "unconscionable conduct" as the standard for enforcement and defines it as "takes advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree."

In actual application, the DTPA has been taken to prohibit a wide variety of deceptive business practices, including, but not limited to:

• Making false claims regarding the manufacturer, provider, source, or origin of a good or service,
• Misrepresenting the properties, qualifications, or endorsements of a good or service,
• Passing off a used product as a new one,
• Making misleading negative statements about a competing business,
• Taking advantage of disasters or crises for "price gouging" purposes, and
• Knowingly making false statements about the need for replacement parts or repairs.

Recovering Damages under the DTPA

While the Texas Attorney General can pursue legal action against someone who violates the DTPA, private citizens are also entitled to sue for damages. In a private lawsuit, the DTPA allows for the recovery of actual economic damages, court costs, and "reasonable and necessary" attorney's fees, with two important factors to consider:

First, if the deceptive or misleading practice is committed "knowingly," the court may award up to three times the amount of economic damages, in addition to damages for mental anguish. Second, if the prohibited action is determined to be "intentional," the court may also award up to three times the mental anguish damages.

If you have been the victim of false or misleading business practices, you may have a case under the Texas Deceptive Trade Practices Act. For more information, call a Texas deceptive trade practices attorney from Slater Kennon & Jameson at 512-472-2431.