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Lawyer Referral Service of Central Texas

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Texas Deceptive Trade Practices-Consumer Protection Act (DTPA): Safeguarding Consumers from Unethical Business Practices

Jun 27, 2023

The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) stands as a crucial legal framework aimed at safeguarding Texan consumers against deceitful and exploitative practices employed by businesses. These encompass misleading actions, unconscionable behaviors, and breaches of warranties. While subject to ongoing interpretation, this statute signifies a stride toward instilling higher ethical standards into the daily operations of Texas enterprises.

Scope of DTPA Application

The scope of the DTPA extends beyond individual consumers, extending its protective reach to encompass smaller businesses. The parameters outlined by the statute serve to safeguard transactions against consumer fraud, false representations, and warranty breaches. These protective measures encompass a wide spectrum, spanning from routine grocery store acquisitions to substantial six-figure business dealings.

However, eligibility as a recipient of the DTPA’s protections necessitates meeting certain criteria. A “consumer” as defined within the act includes individuals, partnerships, companies, organizations, and even state agencies acquiring goods or services through purchase or lease. It is worth noting that businesses with assets exceeding $25 million are exempt from the definition of consumers.

Pre-Filing Notice Requirement

The Texas Deceptive Trade Practices Act mandates that before initiating legal action, a consumer is obligated to dispatch a written notice to the seller at least 60 days in advance. This notice must be devoid of threats but should comprehensively elucidate the extent of economic damages, psychological harm, and incurred expenses, inclusive of attorney fees. Failure by the seller to provide the requested amount within the stipulated 60-day timeframe subsequent to receiving the notice empowers the consumer to pursue legal recourse.

Prohibited Activities Under DTPA

The DTPA effectively criminalizes any individual or business engaged in trade or commerce from engaging in “unconscionable conduct.” Such conduct encompasses actions undertaken by a seller to exploit consumers’ lack of knowledge, experience, or ability in an unjust manner. Moreover, the DTPA enumerates a series of practices deemed false, deceptive, or misleading, including:

  • Misrepresenting used items as new
  • Making falsified statements about the origin or manufacturing of a product or service
  • Exaggerating or distorting the merits or endorsements of a product or service

Additional proscribed activities under the DTPA consist of:

  • Misrepresenting the benefits or endorsements of a product or service
  • Breach of warranty of merchantability – denoting an item’s inability to fulfill its ordinary function
  • Breach of warranty of fitness – signifying a failure to deliver on the promises conveyed by a salesperson

Remedies for Consumers

Foremost, the DTPA empowers consumers with the right to seek damages. If a seller has knowingly committed these prohibited actions, a consumer possesses the capacity to seek restitution for all associated costs. Furthermore, individuals have the prerogative to pursue up to three times the amount of economic damages. For tailored legal advice and representation, consider reaching out to the Lawyer Referral Service of Central Texas (LRS) in Austin. Our team is dedicated to comprehending your DTPA or consumer-related concerns, and we aim to connect you with a proficient attorney possessing the requisite expertise to advocate on your behalf.

Contact the Lawyer Referral Service of Central Texas today for help finding a qualified lawyer who is right for you.

Since 1966, we have helped hundreds of thousands of Austin and Central Texas residents and businesses find the right lawyer to work tirelessly on their behalf and get the results they deserve.

Get an instant referral online, 24/7 or call the Lawyer Referral Service during regular business hours (8:00 AM to 4:30 PM) at (512) 472-8303. We want to help.

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P.O. Box 2341
Austin, TX 78768 

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(512) 472-8303

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