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...

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