Texas Deceptive Trade Practices Act (DTPA): A Consumer’s Guide to Suing for Fraud

As a homeowner or consumer in Texas, you expect the businesses and contractors you hire to deal with you honestly. Unfortunately, false advertising, misleading statements, and deceptive business practices still occur. When they do, the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) is one of the most powerful tools available to hold bad actors accountable.

Enacted to protect consumers against false, misleading, and deceptive business practices, the DTPA provides significant remedies for those who have been wronged. Whether you are dealing with a dishonest home repair contractor, a bad faith insurance claim, or a business that misrepresented its services, understanding your rights under the DTPA is the first step toward recovery.

Who Qualifies as a Consumer Under the DTPA?

To bring a claim under the DTPA, you must first qualify as a “consumer.” Under Section 17.45(4) of the Texas Business and Commerce Code, a consumer is defined as an individual, partnership, corporation, or governmental entity who seeks or acquires by purchase or lease, any goods or services [1].

This definition is broad and covers most everyday transactions. For example, if you hire a roofing contractor to repair hail damage, or if you purchase a commercial property insurance policy, you are acquiring goods or services and generally qualify as a consumer.

The “Laundry List” of Deceptive Practices

Section 17.46(b) of the DTPA contains what legal professionals refer to as the “laundry list”—a specific list of more than 30 acts and practices that are expressly declared false, misleading, or deceptive [1]. Some of the most common violations encountered in construction and consumer disputes include:

• Representing that goods or services have characteristics, uses, or benefits that they do not have.
• Representing that goods or services are of a particular standard, quality, or grade if they are of another.
• Representing that an agreement confers or involves rights, remedies, or obligations which it does not have.
• Failing to disclose information concerning goods or services known at the time of the transaction, if the failure to disclose was intended to induce the consumer into a transaction [1].

If a business commits one of these acts and it is a “producing cause” of your economic damages, you may have a valid DTPA claim.

Remedies and Damages Available to Consumers

The DTPA was designed to encourage consumers to litigate valid claims by providing strong remedies. Under Section 17.50 of the Act, a prevailing consumer may recover their economic damages [2]. However, the statute goes much further if the defendant’s conduct was particularly egregious.

If the trier of fact finds that the deceptive act was committed “knowingly,” the consumer may also recover damages for mental anguish, and the court may award up to three times the amount of economic damages (often called treble damages) [2]. If the conduct was committed “intentionally,” the court may award up to three times both the economic damages and the mental anguish damages [2].

Crucially, the DTPA mandates that a prevailing consumer shall be awarded reasonable and necessary attorneys’ fees and court costs [2]. This fee-shifting provision makes it economically feasible for consumers to pursue justice even when their actual damages might otherwise be outweighed by the cost of litigation.

The 60-Day Notice Requirement

Before you can file a DTPA lawsuit, Texas law requires you to send a written demand letter. Under Section 17.505, a consumer must give written notice to the defendant at least 60 days before filing suit [3]. This notice must advise the person in reasonable detail of the consumer’s specific complaint and the amount of economic damages, mental anguish damages, and expenses (including attorneys’ fees) being sought.

This 60-day period gives the business an opportunity to cure the defect or offer a settlement before litigation begins. Failing to send this notice properly can result in your lawsuit being abated (paused) until the requirement is met.

Protecting Your Rights

Whether you are dealing with a contractor who misrepresented the quality of their work or a business that failed to disclose critical information, the DTPA is a vital mechanism for consumer protection in Texas. Because these claims involve strict statutory notice requirements and specific burdens of proof, it is essential to work with an attorney experienced in Texas commercial and consumer litigation.

At Nixon Law PLLC, we aggressively pursue claims on behalf of consumers and property owners who have been defrauded. We understand the nuances of the DTPA and how to leverage it to maximize your recovery.

About the Author: Jonathon G. Nixon is the managing attorney of Nixon Law PLLC, a Houston-based litigation firm focused on property insurance disputes, construction defects, personal injury, and commercial litigation. Contact Nixon Law PLLC at (713) 482-1523 or jnixon@nixon-law.com.

This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Every situation is unique; you should consult a licensed Texas attorney about your specific circumstances.

References

• [1] Tex. Bus. & Com. Code § 17.46.
• [2] Tex. Bus. & Com. Code § 17.50.
• [3] Tex. Bus. & Com. Code § 17.505.