Texas Deceptive Trade Practices - Consumer Protection Act (DTPA) is a decades-old Texas statute, which helps prevent companies from taking advantage of the consumer public through misleading, deceptive, or fraudulent business practices. Although controversial in some way, and continually re-interpreted in others, DTPa is a key step towards increasing the accountability and ethical standards in day-to-day operations of the company in Texas.
To be fair, DTPa covers more than just individual consumers, in fact, companies and businesses also benefit from some of the standards listed in DTPa.Zakon guidelines concerning fraud, false statements, and breach of warranty protection and buy at the grocery store and six-figure business transactions.
DTPa coverage
DTPa language states that it applies to all entities involved in actions or proceedings related to "any trade or commerce." This statement provides a wide DTPa broad reaching authority, but also exposes the controversies and conflicting interpretations. In simple terms, DTPa trade and commerce clause allows you to cover the sale, rental and distribution of almost all goods and services, with one important exception: expert advice. That is, if a professional is looking for his or her advice or opinion, he or she can not be held responsible if the opinion turns out to be "wrong". For example, a stockbroker will not be penalized for making a wrong prediction markets.
Terms of DTPa
DPTA in short phrases, makes unlawful for any individual or company involved in "trade or commerce" to engage in "unconscionable conduct." Boundaries and the implications of the word "unconscionable" are still the subject of intense debate. One interpretation of the definition of "unconscionable conduct" as an act or behavior that takes advantage of another person or entity's inexperience or lack of knowledge in a dishonest way. Unfortunately, even this definition is not very specific, and was taken to prohibit such actions as:
- price gouging in the wake of a disaster or catastrophe
- Lying on the need for repair or parts of the
- Adoption of used goods as new
- Making a false, negative charges to the competitor
- making false statements about the production or origin of goods / services
- false or misleading advertising
- Exaggerating or misused, or investors, product or service
