The Texas Deceptive Trade Practices Act lets a consumer, including many businesses, sue over false or misleading practices, breaches of warranty and unconscionable conduct in buying or leasing goods or services. It can award more than a contract claim, including attorney's fees and, for knowing conduct, additional damages, but it has exemptions, a presuit notice requirement and a limited time to sue.

We bring DTPA claims for businesses misled when buying equipment, services or construction work, and we defend companies facing DTPA demands. These claims often travel with breach of contract and fraud claims.

What a DTPA Claim Can Be Based On

Listed Deceptive Practices

A false or misleading act on the statute's list that the consumer relied on.

Breach of Warranty

Failure to honor an express or implied warranty on goods or services.

Unconscionable Conduct

Taking advantage of a consumer's lack of knowledge or experience to a grossly unfair degree.

Insurance Practices

Unfair or deceptive insurance practices that Texas insurance law makes actionable.

Who Can Sue and What Is Exempt

Consumers

Individuals, partnerships, corporations and others who seek or acquire goods or services by purchase or lease. A business with assets above a set amount, or one owned or controlled by such a company, is not a consumer.

Large Written Contracts

Claims under a written contract with total consideration by the consumer above a set dollar amount are exempt if the consumer had its own lawyer, not one identified, suggested or selected by the defendant, and the contract doesn't involve the consumer's residence.

Very Large Transactions

Claims from a transaction with total consideration by the consumer above a higher dollar amount are exempt, other than claims involving the consumer's residence.

Professional Services

Claims based on professional advice, judgment or opinion are generally exempt, with exceptions such as an express misrepresentation of fact.

Notice, Deadlines and Damages

Presuit Notice

Written notice of the specific complaint and the damages and expenses claimed, including attorney's fees, a set period before suit, unless an expiring limitations period makes that impracticable. Without it, the defendant can have the suit abated.

Deadline to Sue

The time to file is limited and generally runs from the deceptive act, or from when the consumer discovered or should have discovered it.

Economic Damages

Compensation for financial loss, including repair and replacement costs.

Additional Damages

For knowing conduct, mental anguish damages and an added award based on economic damages; for intentional conduct, a larger possible award based on economic and mental anguish damages.

Many DTPA disputes are resolved during the notice period or at mediation, before trial.

How a DTPA Claim Moves

  1. Review the Transaction

    We confirm consumer status, check the exemptions and measure the damages.

  2. Presuit Notice

    The consumer sends written notice of the complaint and the amounts claimed, then waits a set period before suing.

  3. Inspection and Settlement Offer

    The recipient may inspect the goods and make a settlement offer that can limit recovery.

  4. Early Mediation

    Any party can ask the court to order mediation early in the case.

  5. Suit and Trial

    If the claim doesn't resolve, the case proceeds in court.

Frequently Asked Questions

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Can a business be a consumer under the DTPA?

Yes, if it seeks or acquires goods or services by purchase or lease. The exception is a business with assets above a set amount, or one owned or controlled by a company with assets above that amount.

Can a contract waive DTPA rights?

Only in limited cases. The waiver must be in writing and signed by the consumer, the consumer can't be in a significantly disparate bargaining position, and the consumer must have its own lawyer, not one identified, suggested or selected by the other side. The waiver must also be conspicuous, in bold type and in substantially the form the statute requires.

What should we do if we receive a DTPA demand letter?

Talk to a litigation attorney right away. Within a set period after receiving the notice, the recipient can ask to inspect the goods and can make a written settlement offer. If the consumer rejects the offer and the court later finds it was the same as, substantially the same as, or more than the damages awarded, the consumer's recovery of damages and attorney's fees is limited.

Does the losing side pay attorney's fees in a DTPA case?

A consumer who prevails is entitled to court costs and reasonable and necessary attorney's fees. A defendant can recover its fees only if the court finds the claim was groundless, brought in bad faith or brought to harass.

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