Most everyone has heard the admonition “Buyer beware!” Most people also understand that unscrupulous businesses and individuals can always find new and creative ways to cheat customers. That’s why there are protections for consumers written into federal and state laws.
While the future of the federal Consumer Financial Protection Bureau (CFPB) appears to be in peril, Texas’ Deceptive Trade Practices Act (DTPA) is still in force. The state’s Office of the Attorney General (AG) calls the DTPA its “primary tool” for protecting consumers.
What does the law say?
The DTPA prohibits a number of “false, deceptive or misleading” practices. It allows consumers to sue businesses and individuals for damages if they’ve suffered harm due to these illegal practices. Under the law, plaintiffs can recover as much as three times the actual financial damages suffered if they prevail in their claim.
This law lists many practices that are false, deceptive, or misleading. When you fall victim to illegal practices covered by the DTPA, you may have the right to sue for damages under the act. If you win your suit and prove that the defendant knowingly deceived you, you may be eligible to recover up to three times the value of your damages.
Deceptive advertising
Businesses often use exaggeration and “hype” to advertise their products and services. However, they can’t intentionally lie about them. The DTPA prohibits doing anything that “materially misrepresents the cost or character of tangible personal property, a security, service, or anything…” for the purpose of selling a product or service. This includes things like “deceptive wholesale and going-out-of-business advertising.”
Deceptive containers and branding
The DPTA also addresses containers and packaging that misrepresent what’s inside as well as the misuse of branding and “proprietary marks” that can deceive people into believing that a product or service is produced or offered by a well-known company or otherwise something that it isn’t.
Deceptive practices are often used by illegitimate “fly-by-night” operations that disappear once they’ve scammed enough consumers or know the authorities are on to them. However, legitimate businesses can also engage in illegal practices.
While the DTPA is overseen by the Texas AG, it’s important to know that the office doesn’t represent consumers who file lawsuits. If a consumer hasn’t been able to resolve an issue and get the compensation to which they’re entitled from a business, it’s wise to get individualized legal guidance to seek justice and compensation.