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What is the Deceptive Trade Practices Act?
The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) became law
in 1973. It protects consumers by prohibiting certain false, misleading, and deceptive business and insurance practices, unconscion
able actions, and breaches of warranty.
The act is enforced by the Texas Attorney General, who can seek a court order prohibiting further deceptive practices. A private citizen
may also seek damages for certain acts and practices listed in the DTPA.
What Does the DTPA Cover?
The DTPA covers most consumer transactions.
The act provides that "false, misleading, or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful." This broad
language allows the DTPA to include protection for everyone from individuals to most large businesses.
The DTPA includes a "laundry list" of 25 prohibited practices. A consumer who relied on one of these practices to their detriment may sue under the act.
A few examples of prohibited practices include: representing that goods are original or new when they are actually deteriorated, reconditioned, reclaimed,
used, or second-hand; knowingly making false or misleading statements of fact concerning the need for parts, replacement, or repair service; and representing
that work or services have been performed on, or parts replaced in, goods when the work or services were not performed or the parts replaced.
I Think My Problem Is Covered By the DTPA. What Next?
You should first make a reasonable effort to have the violator correct the problem. Send a letter demanding correction of the problem. Explain exactly
what the violator must do to satisfy you. Be as clear, specific, and factual as possible. Send the letter by certified mail, return receipt requested, and be sure
to keep a copy.
Give the person or business to whom you are complaining a reasonable amount of time to make good. If they flatly turn you down or seem to be stringing you
along, you may have to take legal action.
Do I Need a Lawyer?
Individuals (but not partnerships or corporations) may represent themselves if they wish. For very small amounts of damages, it may be an option for you to file
suit and represent yourself in small claims (Justice of the Peace) court.
In general, your suit must be filed within two years after the false, misleading, or deceptive practice occurred. You MUST give written notice to the alleged
violator before you file suit. The alleged violator then has 60 days to respond with a settlement offer.
You should, however, strongly consider hiring an attorney to represent you because DTPA language and procedures are often complex and may be confusing.
What Can I Recover Under the DTPA?
First, the DTPA provides for recovery of economic damages. If a court finds the wrongful conduct was "knowingly" committed, it may award up to three times the
amount of economic damages, as well as damages for mental anguish. If the act was committed "intentionally," the court may award up to three times the
economic damages. if you prevail, you will be awarded court costs and attorney's fees.
Note that a consumer may face certain defenses and even be liable for certain damages if he or she loses a DTPA lawsuit. If a court finds an action by a
consumer was brought in bad faith or for the purpose of harassment, the defendant may be awarded all attorney's fees necessary for defending the action
as well as court costs.
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This page was adapted from "A Guide to the Deceptive Trade Practices-Consumer
Protection Act," prepared as a public service by the Texas Young Lawyers Association and distributed by the State Bar of Texas. It is made available here as
a public service by the Law Office of James T. McMillen.
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