What Your Business Needs to Know About the Texas DTPA?
The Texas Deceptive Trade Practices Act is also known as the Consumer Protection Act which as the phrase implies is designed to protect consumers; however, it also protects businesses in large transactions. The DTPA provides that all “false, misleading, or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.” To better understand the DTPA, we need to review a few statutory definitions.
Definitions
Trade or commerce means the “advertising, offering for sale, lease, or distribution of any good or service, or any property, tangible or intangible, real, personal, or mixed, any other article, commodity or thing of value wherever situated and shall include any trade or commerce directly or indirectly affecting the people of this state.” The term “good” includes tangible things or real property purchased or leased for use. “Service” includes work, labor or services (except for professional services) purchased or lease for use, including services furnished in connection with the sale or repair of goods. Finally, the term “unconscionable action” is found throughout the statute and it is defined as one that “takes advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree.”
Who can File?
Under the statute, only consumers can file a DTPA action. The definition of a consumer is broad and far reaching. Consumers include any individual, partnership, corporation or governmental entity that seeks goods or services by lease or purchase. Clearly, most businesses fall within the definition and can therefore seek relief.
So What Does Someone Have To Do to Me?
The statute includes a laundry list of violations but the most common are misrepresenting goods and services in an effort to induce purchase or false statements regarding the need for repair or service. In application, the statute would cover situations like unnecessary car repairs, buying a used car, buying a home, purchasing materials for your business or home, and all transactions in between.
So What if Someone Violates the DTPA?
If you think someone has violated the statute and specifically something in the laundry list of violations, you file a suit under the DTPA after giving the appropriate notice letter and opportunity to settle. If the suit continues, the jury may award damages. If the action was deemed intentional or done knowingly, the actual damage award may be trebled (or multiplied by three).
Finally, if you think someone has violated the DTPA, consult a lawyer to preserve your rights. Nonetheless, you will have only two (2) years to file a suit from the date of the first violation.
Editor's note: The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.