Texas Deceptive Trade Practices Act Claims

• Published date: 21 March 2022
• Subject Matter: Consumer Protection, Consumer Law, Dodd-Frank, Consumer Protection Act
• Law Firm: Freeman Law
• Author: Mr Zachary J. Montgomery

The DTPA in Texas

Texas law prohibits businesses from engaging in deceptive trade practices. The Deceptive Trade Practices-Consumer Protection Act ("DTPA"), enacted in 1973 and codified in the Texas Business and Commerce Code, outlines those business practices that are deceptive and provides consumers with a remedial scheme to protect their interests. The DTPA's overarching purposes are: (1) to protect consumers against false, misleading, and deceptive business practices, unconscionable actions, and breaches of warranty, and (2) to provide efficient and economical procedures to secure such protection.¹

Elements of a DTPA Claim

Generally, to prevail on a DTPA claim, plaintiffs must establish three elements:

• The plaintiff is a consumer;
• The defendant engaged in false, misleading, or deceptive acts and
• The acts were a producing cause of the consumer's damages.²

According to the DTPA, a "consumer" is defined as an individual, partnership, corporation, the state of Texas, or a subdivision or agency of the state of Texas who seeks or acquires by purchase or lease, any goods or services.³ However, the term "consumer" specifically excludes a business consumer that has assets of $25 million or more or that is owned or controlled by a corporation or entity with assets of $25 million or more.⁴

False, Misleading, or Deceptive Acts

A consumer may maintain an action where any of the following constitute a producing cause of economic damages or damages for mental anguish:

• The use or employment by any person of a false, misleading, or deceptive act or practice that is
  • specifically described in Subsection (b) of Tex. Bus. &amp Com. Code ' 17.46; and
  • relied on by a consumer to the consumer's detriment;
• Breach of an express or implied warranty;
• Any unconscionable action or course of action by any person or
• The use or employment by any person of an act or practice in violation of Chapter 541 of the Insurance Code.⁵

Often, plaintiffs will pursue DTPA claims based one or more acts described in Tex. Bus. & Com. Code ' 17.46(b). Those acts include:

• passing off goods or services as those of another;
• causing confusion or misunderstanding as to affiliation connection, or association with, or certification by, another;
• representing that goods or services have sponsorship, approval characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which the person does not;
• ...