How False Advertising is Regulated in Texas

Philip Silberman
False Advertising Regulations in Texas

False advertising is a serious concern that can mislead consumers and create unfair market conditions. In Texas, this issue is addressed primarily through the Deceptive Trade Practices Act (DTPA) and the oversight of the Texas Attorney General. Here’s an in-depth look at how false advertising is regulated in Texas.

Deceptive Trade Practices Act (DTPA)

The DTPA is a comprehensive statute designed to protect consumers against false, misleading, and deceptive business practices. Codified in the Texas Business and Commerce Code under Section 17.46(b), the DTPA outlines specific acts that are considered false advertising. These include:

  1. Misrepresentation of Goods or Services: Advertising goods or services with characteristics, uses, or benefits that they do not have.
  2. Intent Not to Sell as Advertised: Advertising goods or services with the intention not to sell them as advertised.
  3. False Price Claims: Making false statements about the reasons for, existence of, or amount of price reductions.

Violations of the DTPA can result in significant penalties, including statutory damages. However, pursuing individual claims can be challenging due to the typically small amount of damages involved, unless the false advertising pertains to high-value items like homes or cars.

Role of the Texas Attorney General

The Texas Attorney General plays a crucial role in enforcing the DTPA. While the Attorney General’s office may not intervene in minor disputes or misunderstandings with local businesses, they do address significant cases of false advertising. Consumers can file complaints online through the Attorney General’s website. However, due to the volume of complaints, response times and the seriousness with which each complaint is treated can vary.

For significant issues, the Attorney General can take legal action against businesses that engage in false advertising, leading to injunctions, penalties, and sometimes restitution for affected consumers.

Practical Steps for Consumers

If you believe you have been a victim of false advertising in Texas, here are some steps you can take:

  1. Document Everything: Keep records of the advertisement, your purchase, and any correspondence with the business.
  2. File a Complaint: Submit a complaint to the Texas Attorney General’s office. While there is no guarantee of action, it is a necessary step.
  3. Consider Legal Action: If the damages are significant, consult with an attorney to explore the possibility of filing a lawsuit under the DTPA.

Conclusion

False advertising is regulated in Texas through the Deceptive Trade Practices Act and enforced by the Texas Attorney General. While small-scale cases might not always get the attention they deserve, significant violations can lead to substantial penalties for businesses. Consumers must stay vigilant, document any deceptive practices, and understand their rights under Texas law to combat false advertising effectively.

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