2009-11-25 / Editorial

POINTS UNDERSTANDING THE TEXAS DECEPTIVE TRADE TRADE PRACTICES ACT THE ACT

by Texas Attorney General Greg Abbott At torne y General Greg Abb ott

“OUR REMEDY CURES ARTHRITIS AND CANCER REMEDY CURES ARTHRITIS AND CANCER

in seven days!”

seven days!”

“Resolve your outstanding debts! With Resolve your outstanding debts! product, you’ll only have to pay creditors 30 percent of you owe!” our product, you’ll only have to pay your

creditors 30 percent of what you owe!”

When a vendor or salesman uses false When a vendor or uses statements, duress, misleading advertisements to win a Texan’s statements, duress, exaggerations or

misleading advertisements to win a Texan’s

business, he or she violates the Texas business, he or she the Deceptive Trade Practices Act (DTPA). “OUR REMEDY CURES in seven days!” Deceptive Trade Practices Act (DTPA).

“Resolve your our product, you’ll creditors 30 percent When a vendor statements, duress, misleading advertisements business, he or Deceptive Trade Vendors may claiming their it does not the Office of (OAG) charged Freedom, Inc., for selling supplies how to install to convert water costs, increase engine performance. discovered no claims are true. Vendors may violate the DTPA by Vendors may violate the DTPA claiming their product does something

claiming their product does something

it does not or cannot do. In April, does not or cannot do. In April,

the Office of the Attorney General

Office of the General

(OAG) charged the California based 1 OAG) charged the based Freedom, Inc., with the DTPA

Freedom, Inc., with violating the DTPA

for selling supplies and instructions on selling supplies and instructions to install devices that promised

how to install devices that promised

to convert water to fuel, reduce fuel convert water to reduce increase gas mileage and enhance

costs, increase gas mileage and enhance

engine performance. Investigators have performance. discovered no evidence that 1 Freedom’s

discovered no evidence that 1 Freedom’s

claims are true.

are true.

Companies also violate the DTPA Companies also the DTPA

when they take advantage of a customer’s they take advantage of a customer’s

lack of knowledge or language

of knowledge or language

comprehension. In March, the OAG comprehension. In the reached an agreement with a Houston

reached an agreement with a Houston

auto dealer after customers complained dealer after customers complained

Companies when they take lack of knowledge comprehension. that they were misled into signing lease they were misled signing agreements when they believed actually purchasing vehicles. agreements when they believed they were actually purchasing vehicles.

Investigators learned that salespeople CANCER

Investigators learned targeted customers who and read English well. targeted customers who did not speak

Enforcement actions are fiof the State of T exas and the The OAG cannot represent Texans, but some legal actions restitution for customers. For in April, the OAG reached an with the owners of Extreme Wellness, Inc., who were court-to repay hundreds of customers pre-paid their gym membership UNDERSTANDING TEXAS DECEPTIVE PRACTICES ACT and read English well. With

The OAG protects Texans by filing your

The OAG protects civil enforcement actions and other consumer protection Businesses must comply they interact with customers. civil enforcement actions under the DTPA and other consumer protection statutes. false

Businesses must comply with the law when

or

by Texas Attorney General Greg Abbott

they interact with customers. Texan’s

Complaints filed with the OAG may Texas

Complaints filed with form the basis for a into a company’s business In some cases, significomplaints about a business to legal action to enforce protect the public interest. to investigate or take legal on a number of factors. Investigators learned that targeted customers who did and read English well.

Enforcement actions of the State of Texas and The OAG cannot represent Texans, but some legal restitution for customers. in April, the OAG reached with the owners of Extreme Wellness, Inc., who were to repay hundreds of pre-paid their gym membership The owners of the Lubbock violated the DTPA by $40,700 in advance membership a health club that never The DTPA covers the CURES ARTHRITIS AND CANCER form the basis for a state investigation outstanding debts! With

into a company’s business practices.

by

you’ll only have to pay your

The OAG protects Texans civil enforcement actions under and other consumer protection Businesses must comply with they interact with customers. In some cases, significant numbers of something

percent of what you owe!”

complaints about a business may give rise April,

or salesman uses false

to legal action to enforce state law and General

duress, exaggerations or

protect the public interest. The decision based 1

advertisements to win a Texan’s

to investigate or take legal action is based DTPA

she violates the Texas

Complaints filed with the form the basis for a state into a company’s business In some cases, significant complaints about a business to legal action to enforce state protect the public interest. to investigate or take legal action on a number of factors. on a number of factors. on Practices Act (DTPA).

violate the DTPA by

Enforcement actions are filed on behalf promised

product does something

of the State of Texas and the public good. fuel

cannot do. In April,

The OAG cannot represent individual enhance

the Attorney General

Texans, but some legal actions do produce have

the California based 1

restitution for customers. For example, Freedom’s

with violating the DTPA

in April, the OAG reached an agreement supplies and instructions on

with the owners of Extreme Fitness and DTPA

devices that promised

Wellness, Inc., who were court-ordered customer’s to fuel, reduce fuel

gas mileage and enhance

to repay hundreds of customers who language

performance. Investigators have

pre-paid their gym membership dues. OAG

evidence that 1 Freedom’s

The owners of the Lubbock fitness spa

Houston

violated the DTPA by collecting about complained

also violate the DTPA

$40,700 in advance membership dues for lease

advantage of a customer’s

a health club that never opened.

they

knowledge or language

The DTPA covers the sale, lease and vehicles. In March, the OAG distribution of nearly all goods and services, that salespeople

distribution with the Providers be cited under clients turn an attorney trade practices lawsuit that Consumer the OAG’s protection of consumer Texans who to deceptive complaint much evidence including records of about conversations representatives. with the exception of professional advice. who did not speak

UNDERSTANDING THE

Providers of professional advice would not

DECEPTIVE TRADE be cited under the DTPA if opinions they give Texans by filing

clients turn out to be “wrong.” For example, actions under the DTPA

ACT an attorney could not be sued for deceptive protection statutes.

trade practices for advising a client to file a

with the law when

lawsuit that ultimately failed. customers.

Consumer education is a vital part of with the OAG may salespeople distribution of nearly all goods and services,

the OAG’s mission. The best consumer state investigation not speak with the exception of professional advice.

Providers of professional advice would not

protection is widespread public awareness business practices.

by filing

be cited under the DTPA if opinions they give

of consumer rights and common scams.

cant numbers of

under the DTPA

clients turn out to be “wrong.” For example,

Texans who believe they have been subject business may give rise

protection statutes.

an attorney could not be sued for deceptive

to deceptive trade practices should file a enforce state law and

the law when

trade practices for advising a client to file a

complaint with the OAG and retain as interest. The decision

lawsuit that ultimately failed.

much evidence of wrongdoing as possible, legal action is based

OAG may

Consumer education is a vital part of

including brochures, advertisements, investigation

practices.

the OAG’s mission. The best consumer

protection is widespread public awareness

records of related transactions and notes are filed on behalf

numbers of

of consumer rights and common scams.

about conversations with company and the public good.

may give rise

Texans who believe they have been subject

representatives. represent individual

state law and

to deceptive trade practices should file a

Texans who relied on a deceptive actions do produce

Texans practice make every with the certified, vendor outlining the company situation also consider or consulting litigation. The decision complaint with the OAG and retain as

practice to their detriment also should customers. For example,

action is based

much evidence of wrongdoing as possible,

make every effort to remedy the situation reached an agreement

including brochures, advertisements,

with the vendor. They should send a Extreme Fitness and

led on behalf

records of related transactions and notes

certified, return receipt letter to the were court-ordered public good.

individual

about conversations with company

representatives.

vendor outlining the problem and what

customers who

do produce

Texans who relied on a deceptive

the company should do to make the membership dues.

For example,

practice to their detriment also should

situation right. If that fails, Texans may Lubbock fitness spa

agreement

make every effort to remedy the situation

also consider suing in small claims court

collecting about

Fitness and

with the vendor. They should send a

or consulting an attorney about civil membership dues for

court-ordered

litigation.

certified, return receipt letter to the

opened.

customers who

vendor outlining the problem and what

the sale, lease and membership dues.

fitness spa

the company should do to make the situation right. If that fails, Texans may

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