CHAPTER 17. DECEPTIVE TRADE PRACTICES
BUSINESS AND COMMERCE CODE
TITLE 2. COMPETITION AND TRADE PRACTICES
CHAPTER 17. DECEPTIVE TRADE PRACTICES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 17.01. DEFINITIONS. In this chapter, unless the context
requires a different definition,
(1) "container" includes bale, barrel, bottle, box, cask, keg,
and package; and
(2) "proprietary mark" includes word, name, symbol, device, and
any combination of them in any form or arrangement, used by a
person to identify his tangible personal property and distinguish
it from the tangible personal property of another.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
SUBCHAPTER B. DECEPTIVE ADVERTISING, PACKING, SELLING, AND
EXPORTING
Sec. 17.08. PRIVATE USE OF STATE SEAL. (a) In this section:
(1) "Commercial purpose" means a purpose that is intended to
result in a profit or other tangible benefit but does not
include:
(A) official use of the state seal or a representation of the
state seal in a state function;
(B) use of the state seal or a representation of the state seal
for a political purpose by an elected official of this state;
(C) use of the state seal or a representation of the state seal
in an encyclopedia, dictionary, book, journal, pamphlet,
periodical, magazine, or newspaper incident to a description or
history of seals, coats of arms, heraldry, or this state;
(D) use of the state seal or a representation of the state seal
in a library, museum, or educational facility incident to
descriptions or exhibits relating to seals, coats of arms,
heraldry, or this state;
(E) use of the state seal or a representation of the state seal
in a theatrical, motion-picture, television, or similar
production for a historical, educational, or newsworthy purpose;
or
(F) use of the state seal or a representation of the state seal
for another historical, educational, or newsworthy purpose if
authorized in writing by the secretary of state.
(2) "Representation of the state seal " includes a nonexact
representation that the secretary of state determines is
deceptively similar to the state seal.
(3) "Official use" means the use of the state seal by an officer
or employee of this state in performing a state function.
(4) "State function" means a state governmental activity
authorized or required by law.
(5) "State seal" means the state seal, the reverse of the state
seal, and the state arms as defined by Sections 3101.001 and
3101.002, Government Code.
(b) Except as otherwise provided by this section, a person may
not use a representation of the state seal:
(1) to advertise or publicize tangible personal property or a
commercial undertaking; or
(2) for another commercial purpose.
(c) A person may use a representation of the state seal for a
commercial purpose if the person obtains a license from the
secretary of state for that use. The secretary of state, under
the authority vested in the secretary as custodian of the seal
under Article IV, Section 19, of the Texas Constitution, shall
issue a license to a person who applies for a license on a form
provided by the secretary of state and who pays the fees required
under this section if the secretary of state determines that the
use is in the best interests of the state and not detrimental to
the image of the state. A license issued under this section
expires one year after the date of issuance and may be renewed.
(d) The secretary of state shall adopt rules relating to the use
of the state seal by a person licensed under this section. The
secretary of state shall adopt the rules in the manner provided
by Chapter 2001, Government Code.
(e) The application fee for a license under this section is $35.
The license fee for an original or renewal license is $250. In
addition to those fees, each licensee shall pay an amount equal
to three percent of the licensee's annual gross receipts related
to the licensed use in excess of $5,000 to the state as a royalty
fee.
(f) A person licensed under this section shall maintain records
relating to the licensee's use of the state seal in the manner
required by the rules of the secretary of state. The secretary of
state may examine the records during reasonable business hours to
determine the licensee's compliance with this section. Each
licensee shall display the license in a conspicuous manner in the
licensee's office or place of business.
(g) The secretary of state may suspend or revoke a license
issued under this section for failure to comply with this section
or the rules adopted under this section. The secretary of state
may bring a civil action to enjoin a violation of this section or
the rules adopted under this section.
(h) A person who reproduces an official document bearing the
state seal does not violate Subsection (b) of this section if the
document is:
(1) reproduced in complete form; and
(2) used for a purpose related to the purpose for which the
document was issued by the state.
(i) A person who violates a provision of Subsection (b) of this
section commits an offense. An offense under this section is a
Class C misdemeanor.
(j) A person who violates Subsection (b) of this section commits
a separate offense each day that the person violates a provision
of that subsection.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967. Amended by Acts 1985, 69th Leg., ch. 811, Sec. 10, eff.
Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 300, Sec. 8, eff. Aug.
30, 1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept.
1, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 2A.001, eff. September 1, 2007.
Sec. 17.11. DECEPTIVE WHOLESALE AND GOING-OUT-OF-BUSINESS
ADVERTISING. (a) In Subsection (b) of this section, unless the
context requires a different definition, "wholesaler" means a
person who sells for the purpose of resale and not directly to a
consuming purchaser.
(b) No person may wilfully misrepresent the nature of his
business by using in selling or advertising the word
manufacturer, wholesaler, retailer, or other word of similar
meaning.
(c) No person may wilfully misrepresent the ownership of a
business for the purpose of holding a liquidation sale, auction
sale, or other sale which represents that the business is going
out of business. A person who advertises a liquidation sale,
auction sale, or going-out-of-business sale shall state the
correct name and permanent address of the owner of the business
in the advertising.
(d) A person who violates a provision of Subsection (b) or (c)
of this section is guilty of a misdemeanor and upon conviction is
punishable by a fine of not less than $100 nor more than $500.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Sec. 17.12. DECEPTIVE ADVERTISING. (a) No person may
disseminate a statement he knows materially misrepresents the
cost or character of tangible personal property, a security,
service, or anything he may offer for the purpose of
(1) selling, contracting to sell, otherwise disposing of, or
contracting to dispose of the tangible personal property,
security, service, or anything he may offer; or
(2) inducing a person to contract with regard to the tangible
personal property, security, service, or anything he may offer.
(b) No person may solicit advertising in the name of a club,
association, or organization without the written permission of
such club, association, or organization or distribute any
publication purporting to represent officially a club,
association, or organization without the written authority of or
a contract with such club, association, or organization and
without listing in such publication the complete name and address
of the club, association, or organization endorsing it.
(c) A person's proprietary mark appearing on or in a statement
described in Subsection (a) of this section is prima facie
evidence that the person disseminated the statement.
(d) A person who violates a provision of Subsection (a) or (b)
of this Section is guilty of a misdemeanor and upon conviction is
punishable by a fine of not less than $10 nor more than $200.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967. Amended by Acts 1969, 61st Leg., p. 2045, ch. 701, Sec. 1,
eff. June 12, 1969.
SUBCHAPTER C. REGULATING THE SALE OR TRANSFER OF SECONDHAND
WATCHES
Sec. 17.18. APPLICABILITY OF SUBCHAPTER TO SECONDHAND WATCHES.
(a) A watch is secondhand if its
(1) case, movement, or case and movement as a unit, has been
previously sold or transferred to a person for his own use or the
use of another;
(2) serial number, movement number, or other identification mark
or number has been removed, altered, or covered up; or
(3) movement is more than one year old and has been repaired
even though the watch has been returned to the seller or
transferor for exchange or credit as described in Subsection
(b)(1) of this section.
(b) A watch is not secondhand if
(1) after the sale or transfer described in Subsection (a)(1) of
this section,
(A) the purchaser or transferee returns the watch to the seller
or transferor for exchange or credit within one year from the
date of sale or transfer to him;
(B) the seller or transferor keeps a written record showing
(i) the purchaser's or transferee's name;
(ii) the date of sale or transfer;
(iii) the serial number on the case and movement, if present;
and
(iv) any proprietary mark;
(C) the record is kept for at least five years from the date of
sale or transfer; and
(D) the record is open for inspection at the seller's or
transferor's business address during business hours by
(i) the county or district attorney of the county in which the
seller or transferor does business; or
(ii) his duly authorized representative; or
(2) its movement is merely cleaned, oiled, or recased.
(c) The provisions of Subsections (a) and (b) of this section do
not apply to a pawnbroker's auction sale of unredeemed pledges.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Sec. 17.19. LABELING SECONDHAND WATCHES. No person in the
business of buying or selling watches may sell or exchange, offer
to sell or exchange, possess, or display with intent to sell or
exchange a secondhand watch unless he
(1) fastens to the watch a clearly written or printed tag
bearing the word "secondhand"; and
(2) places the tag so the word "secondhand" is in plain sight at
all times.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Sec. 17.20. CONTENT OF INVOICE FOR SECONDHAND WATCH. (a) No
person in the business of buying or selling watches may sell or
transfer a secondhand watch unless he gives the purchaser or
transferee a written invoice
(1) bearing the words "secondhand watch" in letters larger than
any other letters on the invoice, except those of the letterhead;
and
(2) listing the following items:
(A) the seller's or transferor's name and address;
(B) the purchaser's or transferee's name and address;
(C) the date of sale or transfer;
(D) the name of the watch or its manufacturer; and
(E) the serial number or proprietary mark on the watch or, if
the serial number or proprietary mark has been removed, altered,
or covered up, a statement to that effect.
(b) The seller or transferor shall keep on file a duplicate of
the invoice required by Subsection (a) of this section for at
least five years from the date of sale or transfer.
(c) The county or district attorney, or his authorized
representative, of the county in which the seller or transferor
does business may inspect the duplicate invoice described in
Subsection (b) of this section
(1) during the seller's or transferor's business hours; and
(2) at the seller's or transferor's business address.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Sec. 17.21. ADVERTISING WATCH AS SECONDHAND. No person may
advertise or display a secondhand watch for sale or exchange
unless he clearly states in the advertisement or display that the
watch is secondhand.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Sec. 17.22. CRIMINAL PENALTY. A person, or his agent or
employee, who violates a provision of Section 17.19, 17.20, or
17.21 of this code is guilty of a misdemeanor and upon conviction
is punishable by imprisonment in the county jail for not more
than 100 days or by a fine of not more than $500 or by both.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
SUBCHAPTER D. COUNTERFEITING OR CHANGING A REQUIRED MARK; MISUSE
OF CONTAINER BEARING MARK
Sec. 17.29. MISUSING CONTAINER; EVIDENCE OF MISUSE AND
CONTAINER'S OWNERSHIP. (a) In this section, unless the context
requires a different definition, "container" also includes
drink-dispensing fountain.
(b) Unless the owner of a reusable container bearing a
proprietary mark (or one acting with the owner's written
permission) agrees, no person may
(1) fill the container for sale or other commercial purpose;
(2) deface, cover up, or remove the proprietary mark from the
container; or
(3) refuse to return the container to the owner if he requests
its return.
(c) A person's wilful
(1) possession of a full or empty reusable container without the
owner's permission is prima facie evidence of his violating a
provision of Subsection (b) of this section;
(2) use, purchase, sale, or other disposition of a full or empty
reusable container without the owner's permission is prima facie
evidence of his violating a provision of Subsection (b) of this
section; and
(3) breaking, damaging, or destroying a full or empty reusable
container is prima facie evidence of his violating a provision of
Subsection (b) of this section.
(d) In an action in which the ownership of a reusable container
is in issue, a person's proprietary mark on the container is
prima facie evidence that the person or his licensee owns the
container.
(e) A person who violates a provision of Subsection (b) of this
section is guilty of a misdemeanor and upon conviction is
punishable by
(1) a fine of not less than $25 nor more than $50 for each
violation concerning a drink-dispensing fountain; or
(2) a fine of not less than $5 nor more than $10 for each
violation concerning any other container.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Sec. 17.30. MISUSING DAIRY CONTAINER BEARING PROPRIETARY MARK.
(a) In this section, unless the context requires a different
definition, "dairy container" includes butter box, ice cream can,
ice cream tub, milk bottle, milk bottle case, milk can, and milk
jar.
(b) Without the owner's consent, no person may
(1) fill with milk, cream, butter, or ice cream; damage;
mutilate; or destroy a dairy container bearing the owner's
commonly used proprietary mark; or
(2) wilfully refuse to return on request to the owner a dairy
container bearing his commonly used proprietary mark.
(c) Without the owner's written consent, no person may
(1) deface or remove an owner's proprietary mark from a dairy
container; or
(2) substitute on a dairy container his proprietary mark for
that of the owner.
(d) A person's commonly used proprietary mark on a dairy
container is prima facie evidence of that person's ownership of
the container.
(e) A person who violates a provision of Subsection (b) or (c)
of this section is guilty of a misdemeanor and upon conviction is
punishable by a fine of not less than $10 nor more than $100.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1,
1967.
Sec. 17.31. IDENTIFICATION, POSSESSION, AND USE OF CERTAIN
CONTAINERS. (a) In this section:
(1) "Bakery basket or tray" means a wire or plastic container
that holds bread or other baked goods and is used by a
distributor or retailer or an agent of a distributor or retailer
to transport, store, or carry bakery products.
(2) "Container" means a bakery basket or tray, dairy case, egg
basket, poultry box, or other container used to transport, store,
or carry a product.
(3) "Dairy case" means a wire or plastic container that holds 16
quarts or more of beverage and is used by a distributor or
retailer or an agent of a distributor or retailer to transport,
store, or carry dairy products.
(4) "Egg basket" means a permanent type of container that
contains four dozen or more shell eggs and is used by a
distributor or retailer or an agent of a distributor or retailer
to transport, store, or carry eggs.
(5) "Laundry cart" means a basket that is mounted on wheels and
used in a coin-operated laundry or dry cleaning establishment by
a customer or an attendant to transport laundry and laundry
supplies.
(6) "Name or mark" means any permanently affixed or permanently
stamped name or mark that is used for the purpose of identifying
the owner of a shopping cart, laundry cart, or container.
(7) "Parking area" means a lot or other property provided by a
retail establishment for the use of customers to park automobiles
or other vehicles while doing business in that establishment.
(8) "Poultry box" means a permanent type of container that is
used by a processor, distributor, retailer, or food service
establishment or an agent of one of those persons to transport,
store, or carry poultry.
(9) "Shopping cart" means a basket that is mounted on wheels, or
a similar device, generally used in a retail establishment by a
customer to transport goods of any kind.
(b) A person owning a shopping cart, laundry cart, or container
may adopt and use a name or mark on the carts or containers.
(c) A person may not:
(1) use for any purpose outside the premises of the owner or an
adjacent parking area, a container of another that is identified
with or by any name or mark unless the use is authorized by the
owner;
(2) sell or offer for sale a container of another that is
identified with or by a name or mark unless the sale is
authorized by the owner; or
(3) deface, obliterate, destroy, cover up, or otherwise remove
or conceal a name or mark on a container of another without the
written consent of the owner.
(d) A common carrier or contract carrier, unless engaged in the
transporting of dairy products, eggs, and poultry to and from
farms where they are produced, may not receive or transport a
container marked with a name or mark unless the carrier has in
the carrier's possession a bill of lading or invoice for the
container.
(e) A person may not remove a container from the premises,
parking area, or any other area of a processor, distributor, or
retail establishment or from a delivery vehicle unless the person
is legally authorized to do so, if:
(1) the container is marked on at least one side with a name or
mark; and
(2) a notice to the public, warning that unauthorized use by a
person other than the owner is punishable by law, is visibly
displayed on the container.
(f) A person may not:
(1) remove a shopping cart or laundry cart from the premises or
parking area of a retail establishment with intent to temporarily
or permanently deprive the owner of the cart or the retailer of
possession of the cart;
(2) remove a shopping cart or laundry cart, without written
authorization from the owner of the cart, from the premises or
parking area of any retail establishment;
(3) possess, without the written permission of the owner or
retailer in lawful possession of the cart, a shopping cart or
laundry cart outside the premises or parking lot of the retailer
whose name or mark appears on the cart; or
(4) remove, obliterate, or alter a serial number, name, or mark
affixed to a shopping cart or laundry cart.
(g) The requiring, taking, or accepting of a deposit on delivery
of a container, shopping cart, or laundry cart is not considered
a sale of the container or cart.
(h) A person who violates this section commits an offense. An
offense under this section is a Class C misdemeanor. Each
violation constitutes a separate offense.
(i) This section does not apply to the owner of a shopping cart,
laundry cart, or container or to a customer or any other person
who has written consent from the owner of a shopping cart,
laundry cart, or container or from a retailer in lawful
possession of the cart or container to remove it from the
premises or the parking area of the retail establishment. For the
purposes of this section, the term "written consent" includes
tokens and other indicia of consent established by the owner of
the carts or the retailer.
Added by Acts 1989, 71st Leg., ch. 724, Sec. 1, eff. Sept. 1,
1989.
SUBCHAPTER E. DECEPTIVE TRADE PRACTICES AND CONSUMER PROTECTION
Sec. 17.41. SHORT TITLE. This subchapter may be cited as the
Deceptive Trade Practices-Consumer Protection Act.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973.
Sec. 17.42. WAIVERS: PUBLIC POLICY. (a) Any waiver by a
consumer of the provisions of this subchapter is contrary to
public policy and is unenforceable and void; provided, however,
that a waiver is valid and enforceable if:
(1) the waiver is in writing and is signed by the consumer;
(2) the consumer is not in a significantly disparate bargaining
position; and
(3) the consumer is represented by legal counsel in seeking or
acquiring the goods or services.
(b) A waiver under Subsection (a) is not effective if the
consumer's legal counsel was directly or indirectly identified,
suggested, or selected by a defendant or an agent of the
defendant.
(c) A waiver under this section must be:
(1) conspicuous and in bold-face type of at least 10 points in
size;
(2) identified by the heading "Waiver of Consumer Rights," or
words of similar meaning; and
(3) in substantially the following form:
"I waive my rights under the Deceptive Trade Practices-Consumer
Protection Act, Section 17.41 et seq., Business & Commerce
Code, a law that gives consumers special rights and protections.
After consultation with an attorney of my own selection, I
voluntarily consent to this waiver."
(d) The waiver required by Subsection (c) may be modified to
waive only specified rights under this subchapter.
(e) The fact that a consumer has signed a waiver under this
section is not a defense to an action brought by the attorney
general under Section 17.47.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1981, 67th Leg., p. 863, ch. 307, Sec.
1, eff. Aug. 31, 1981; Acts 1983, 68th Leg., p. 4943, ch. 883,
Sec. 1, eff. Aug. 29, 1983; Acts 1987, 70th Leg., ch. 167, Sec.
5.02(6), eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 380, Sec.
1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 414, Sec. 1,
eff. Sept. 1, 1995.
Sec. 17.43. CUMULATIVE REMEDIES. The provisions of this
subchapter are not exclusive. The remedies provided in this
subchapter are in addition to any other procedures or remedies
provided for in any other law; provided, however, that no
recovery shall be permitted under both this subchapter and
another law of both damages and penalties for the same act or
practice. A violation of a provision of law other than this
subchapter is not in and of itself a violation of this
subchapter. An act or practice that is a violation of a provision
of law other than this subchapter may be made the basis of an
action under this subchapter if the act or practice is proscribed
by a provision of this subchapter or is declared by such other
law to be actionable under this subchapter. The provisions of
this subchapter do not in any way preclude other political
subdivisions of this state from dealing with deceptive trade
practices.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1979, 66th Leg., p. 1327, ch. 603, Sec.
1, eff. Aug. 27, 1979; Acts 1995, 74th Leg., ch. 414, Sec. 1,
eff. Sept. 1, 1995.
Sec. 17.44. CONSTRUCTION AND APPLICATION. (a) This subchapter
shall be liberally construed and applied to promote its
underlying purposes, which are to protect consumers against
false, misleading, and deceptive business practices,
unconscionable actions, and breaches of warranty and to provide
efficient and economical procedures to secure such protection.
(b) Chapter 27, Property Code, prevails over this subchapter to
the extent of any conflict.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1995, 74th Leg., ch. 414, Sec. 1, eff.
Sept. 1, 1995.
Sec. 17.45. DEFINITIONS. As used in this subchapter:
(1) "Goods" means tangible chattels or real property purchased
or leased for use.
(2) "Services" means work, labor, or service purchased or leased
for use, including services furnished in connection with the sale
or repair of goods.
(3) "Person" means an individual, partnership, corporation,
association, or other group, however organized.
(4) "Consumer" means an individual, partnership, corporation,
this state, or a subdivision or agency of this state who seeks or
acquires by purchase or lease, any goods or services, except that
the term does not include 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.
(5) "Unconscionable action or course of action" means an act or
practice which, to a consumer's detriment, takes advantage of the
lack of knowledge, ability, experience, or capacity of the
consumer to a grossly unfair degree.
(6) "Trade" and "commerce" mean the advertising, offering for
sale, sale, lease, or distribution of any good or service, of any
property, tangible or intangible, real, personal, or mixed, and
any other article, commodity, or thing of value, wherever
situated, and shall include any trade or commerce directly or
indirectly affecting the people of this state.
(7) "Documentary material" includes the original or a copy of
any book, record, report, memorandum, paper, communication,
tabulation, map, chart, photograph, mechanical transcription, or
other tangible document or recording, wherever situated.
(8) "Consumer protection division" means the consumer protection
division of the attorney general's office.
(9) "Knowingly" means actual awareness, at the time of the act
or practice complained of, of the falsity, deception, or
unfairness of the act or practice giving rise to the consumer's
claim or, in an action brought under Subdivision (2) of
Subsection (a) of Section 17.50, actual awareness of the act,
practice, condition, defect, or failure constituting the breach
of warranty, but actual awareness may be inferred where objective
manifestations indicate that a person acted with actual
awareness.
(10) "Business consumer" means an individual, partnership, or
corporation who seeks or acquires by purchase or lease, any goods
or services for commercial or business use. The term does not
include this state or a subdivision or agency of this state.
(11) "Economic damages" means compensatory damages for pecuniary
loss, including costs of repair and replacement. The term does
not include exemplary damages or damages for physical pain and
mental anguish, loss of consortium, disfigurement, physical
impairment, or loss of companionship and society.
(12) "Residence" means a building:
(A) that is a single-family house, duplex, triplex, or
quadruplex or a unit in a multiunit residential structure in
which title to the individual units is transferred to the owners
under a condominium or cooperative system; and
(B) that is occupied or to be occupied as the consumer's
residence.
(13) "Intentionally" means actual awareness of the falsity,
deception, or unfairness of the act or practice, or the
condition, defect, or failure constituting a breach of warranty
giving rise to the consumer's claim, coupled with the specific
intent that the consumer act in detrimental reliance on the
falsity or deception or in detrimental ignorance of the
unfairness. Intention may be inferred from objective
manifestations that indicate that the person acted intentionally
or from facts showing that a defendant acted with flagrant
disregard of prudent and fair business practices to the extent
that the defendant should be treated as having acted
intentionally.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1975, 64th Leg., p. 149, ch. 62, Sec.
1, eff. Sept. 1, 1975; Acts 1977, 65th Leg., p. 600, ch. 216,
Sec. 1, eff. May 23, 1977; Acts 1979, 66th Leg., p. 1327, ch.
603, Sec. 2, eff. Aug. 27, 1979; Acts 1983, 68th Leg., p. 4943,
ch. 883, Sec. 2, 3, eff. Aug. 29, 1983; Acts 1995, 74th Leg., ch.
414, Sec. 2, eff. Sept. 1, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
411, Sec. 1, eff. September 1, 2007.
Sec. 17.46. DECEPTIVE TRADE PRACTICES UNLAWFUL. (a) False,
misleading, or deceptive acts or practices in the conduct of any
trade or commerce are hereby declared unlawful and are subject to
action by the consumer protection division under Sections 17.47,
17.58, 17.60, and 17.61 of this code.
(b) Except as provided in Subsection (d) of this section, the
term "false, misleading, or deceptive acts or practices"
includes, but is not limited to, the following acts:
(1) passing off goods or services as those of another;
(2) causing confusion or misunderstanding as to the source,
sponsorship, approval, or certification of goods or services;
(3) causing confusion or misunderstanding as to affiliation,
connection, or association with, or certification by, another;
(4) using deceptive representations or designations of
geographic origin in connection with goods or services;
(5) representing that goods or services have sponsorship,
approval, characteristics, ingredients, uses, benefits, or
quantities which they do not have or that a person has a
sponsorship, approval, status, affiliation, or connection which
he does not;
(6) representing that goods are original or new if they are
deteriorated, reconditioned, reclaimed, used, or secondhand;
(7) representing that goods or services are of a particular
standard, quality, or grade, or that goods are of a particular
style or model, if they are of another;
(8) disparaging the goods, services, or business of another by
false or misleading representation of facts;
(9) advertising goods or services with intent not to sell them
as advertised;
(10) advertising goods or services with intent not to supply a
reasonable expectable public demand, unless the advertisements
disclosed a limitation of quantity;
(11) making false or misleading statements of fact concerning
the reasons for, existence of, or amount of price reductions;
(12) representing that an agreement confers or involves rights,
remedies, or obligations which it does not have or involve, or
which are prohibited by law;
(13) knowingly making false or misleading statements of fact
concerning the need for parts, replacement, or repair service;
(14) misrepresenting the authority of a salesman, representative
or agent to negotiate the final terms of a consumer transaction;
(15) basing a charge for the repair of any item in whole or in
part on a guaranty or warranty instead of on the value of the
actual repairs made or work to be performed on the item without
stating separately the charges for the work and the charge for
the warranty or guaranty, if any;
(16) disconnecting, turning back, or resetting the odometer of
any motor vehicle so as to reduce the number of miles indicated
on the odometer gauge;
(17) advertising of any sale by fraudulently representing that a
person is going out of business;
(18) advertising, selling, or distributing a card which purports
to be a prescription drug identification card issued under
Section 4151.152, Insurance Code, in accordance with rules
adopted by the commissioner of insurance, which offers a discount
on the purchase of health care goods or services from a third
party provider, and which is not evidence of insurance coverage,
unless:
(A) the discount is authorized under an agreement between the
seller of the card and the provider of those goods and services
or the discount or card is offered to members of the seller;
(B) the seller does not represent that the card provides
insurance coverage of any kind; and
(C) the discount is not false, misleading, or deceptive;
(19) using or employing a chain referral sales plan in
connection with the sale or offer to sell of goods, merchandise,
or anything of value, which uses the sales technique, plan,
arrangement, or agreement in which the buyer or prospective buyer
is offered the opportunity to purchase merchandise or goods and
in connection with the purchase receives the seller's promise or
representation that the buyer shall have the right to receive
compensation or consideration in any form for furnishing to the
seller the names of other prospective buyers if receipt of the
compensation or consideration is contingent upon the occurrence
of an event subsequent to the time the buyer purchases the
merchandise or goods;
(20) representing that a guarantee or warranty confers or
involves rights or remedies which it does not have or involve,
provided, however, that nothing in this subchapter shall be
construed to expand the implied warranty of merchantability as
defined in Sections 2.314 through 2.318 and Sections 2A.212
through 2A.216 to involve obligations in excess of those which
are appropriate to the goods;
(21) promoting a pyramid promotional scheme, as defined by
Section 17.461;
(22) representing that work or services have been performed on,
or parts replaced in, goods when the work or services were not
performed or the parts replaced;
(23) filing suit founded upon a written contractual obligation
of and signed by the defendant to pay money arising out of or
based on a consumer transaction for goods, services, loans, or
extensions of credit intended primarily for personal, family,
household, or agricultural use in any county other than in the
county in which the defendant resides at the time of the
commencement of the action or in the county in which the
defendant in fact signed the contract; provided, however, that a
violation of this subsection shall not occur where it is shown by
the person filing such suit he neither knew or had reason to know
that the county in which such suit was filed was neither the
county in which the defendant resides at the commencement of the
suit nor the county in which the defendant in fact signed the
contract;
(24) failing to disclose information concerning goods or
services which was known at the time of the transaction if such
failure to disclose such information was intended to induce the
consumer into a transaction into which the consumer would not
have entered had the information been disclosed;
(25) using the term "corporation," "incorporated," or an
abbreviation of either of those terms in the name of a business
entity that is not incorporated under the laws of this state or
another jurisdiction;
(26) selling, offering to sell, or illegally promoting an
annuity contract under Chapter 22, Acts of the 57th Legislature,
3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
Statutes), with the intent that the annuity contract will be the
subject of a salary reduction agreement, as defined by that Act,
if the annuity contract is not an eligible qualified investment
under that Act or is not registered with the Teacher Retirement
System of Texas as required by Section 8A of that Act; or
(27) taking advantage of a disaster declared by the governor
under Chapter 418, Government Code, by:
(A) selling or leasing fuel, food, medicine, or another
necessity at an exorbitant or excessive price; or
(B) demanding an exorbitant or excessive price in connection
with the sale or lease of fuel, food, medicine, or another
necessity.
(c)(1) It is the intent of the legislature that in construing
Subsection (a) of this section in suits brought under Section
17.47 of this subchapter the courts to the extent possible will
be guided by Subsection (b) of this section and the
interpretations given by the Federal Trade Commission and federal
courts to Section 5(a)(1) of the Federal Trade Commission Act [15
U.S.C.A. Sec. 45(a)(1)].
(2) In construing this subchapter the court shall not be
prohibited from considering relevant and pertinent decisions of
courts in other jurisdictions.
(d) For the purposes of the relief authorized in Subdivision (1)
of Subsection (a) of Section 17.50 of this subchapter, the term
"false, misleading, or deceptive acts or practices" is limited to
the acts enumerated in specific subdivisions of Subsection (b) of
this section.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1977, 65th Leg., p. 601, ch. 216, Sec.
2, 3, eff. May 23, 1977; Acts 1977, 65th Leg., p. 892, ch. 336,
Sec. 1, eff. Aug. 29, 1977; Acts 1979, 66th Leg., p. 1327, ch.
603, Sec. 3, eff. Aug. 27, 1979; Acts 1987, 70th Leg., ch. 280,
Sec. 1, eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 570, Sec.
6, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 414, Sec. 3,
eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 463, Sec. 1, eff.
Sept. 1, 1995; Acts 2001, 77th Leg., ch. 962, Sec. 1, eff. Sept.
1, 2001; Acts 2001, 77th Leg., ch. 1229, Sec. 27, eff. June 1,
2002; Acts 2003, 78th Leg., ch. 1276, Sec. 4.001(a), eff. Sept.
1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 11.101, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
1230, Sec. 26, eff. September 1, 2007.
Sec. 17.461. PYRAMID PROMOTIONAL SCHEME. (a) In this section:
(1) "Compensation" means payment of money, a financial benefit,
or another thing of value. The term does not include payment
based on sale of a product to a person, including a participant,
who purchases the product for actual use or consumption.
(2) "Consideration" means the payment of cash or the purchase of
a product. The term does not include:
(A) a purchase of a product furnished at cost to be used in
making a sale and not for resale;
(B) a purchase of a product subject to a repurchase agreement
that complies with Subsection (b); or
(C) time and effort spent in pursuit of a sale or in a
recruiting activity.
(3) "Participate" means to contribute money into a pyramid
promotional scheme without promoting, organizing, or operating
the scheme.
(4) "Product" means a good, a service, or intangible property of
any kind.
(5) "Promoting a pyramid promotional scheme" means:
(A) inducing or attempting to induce one or more other persons
to participate in a pyramid promotional scheme; or
(B) assisting another person in inducing or attempting to induce
one or more other persons to participate in a pyramid promotional
scheme, including by providing references.
(6) "Pyramid promotional scheme" means a plan or operation by
which a person gives consideration for the opportunity to receive
compensation that is derived primarily from a person's
introduction of other persons to participate in the plan or
operation rather than from the sale of a product by a person
introduced into the plan or operation.
(b) To qualify as a repurchase agreement for the purposes of
Subsection (a)(2)(B), an agreement must be an enforceable
agreement by the seller to repurchase, on written request of the
purchaser and not later than the first anniversary of the
purchaser's date of purchase, all unencumbered products that are
in an unused, commercially resalable condition at a price not
less than 90 percent of the amount actually paid by the purchaser
for the products being returned, less any consideration received
by the purchaser for purchase of the products being returned. A
product that is no longer marketed by the seller is considered
resalable if the product is otherwise in an unused, commercially
resalable condition and is returned to the seller not later than
the first anniversary of the purchaser's date of purchase, except
that the product is not considered resalable if before the
purchaser purchased the product it was clearly disclosed to the
purchaser that the product was sold as a nonreturnable,
discontinued, seasonal, or special promotion item.
(c) A person commits an offense if the person contrives,
prepares, establishes, operates, advertises, sells, or promotes a
pyramid promotional scheme. An offense under this subsection is a
state jail felony.
(d) It is not a defense to prosecution for an offense under this
section that the pyramid promotional scheme involved both a
franchise to sell a product and the authority to sell additional
franchises if the emphasis of the scheme is on the sale of
additional franchises.
Added by Acts 1995, 74th Leg., ch. 463, Sec. 2, eff. Sept. 1,
1995.
Sec. 17.462. LISTING OF BUSINESS LOCATION IN DIRECTORY OR
DATABASE. (a) A person may not misrepresent the geographical
location of a business that derives 50 percent or more of its
gross income from the sale or arranging for the sale of flowers
or floral arrangements in the listing of the business in a
telephone directory or other directory assistance database.
(b) A person is considered to misrepresent the geographical
location of a business for purposes of Subsection (a) if the name
of the business indicates that the business is located in a
geographical area and:
(1) the business is not located within the geographical area
indicated;
(2) the listing fails to identify the municipality and state of
the business's geographical location; and
(3) a telephone call to the local telephone number listed in the
directory or database routinely is forwarded or transferred to a
location that is outside the calling area covered by the
directory or database in which the number is listed.
(c) A person may place a directory listing for a business
described by Subsection (a) the name of which indicates that it
is located in a geographical area that is different from the
geographical area in which the business is located if a
conspicuous notice in the listing states the municipality and
state in which the business is located.
(d) This section does not apply to a publisher of a telephone
directory or other publication or a provider of a directory
assistance service publishing or providing information about
another business.
(e) This section creates no duty and imposes no obligation upon
anyone other than the business that is the subject of the
advertisement or listing.
(f) A violation of this section is a false, misleading, or
deceptive act or practice under this subchapter, and any public
or private right or remedy prescribed by this subchapter may be
used to enforce this section.
Added by Acts 2003, 78th Leg., ch. 138, Sec. 1, eff. Sept. 1,
2003.
Sec. 17.47. RESTRAINING ORDERS. (a) Whenever the consumer
protection division has reason to believe that any person is
engaging in, has engaged in, or is about to engage in any act or
practice declared to be unlawful by this subchapter, and that
proceedings would be in the public interest, the division may
bring an action in the name of the state against the person to
restrain by temporary restraining order, temporary injunction, or
permanent injunction the use of such method, act, or practice.
Nothing herein shall require the consumer protection division to
notify such person that court action is or may be under
consideration. Provided, however, the consumer protection
division shall, at least seven days prior to instituting such
court action, contact such person to inform him in general of the
alleged unlawful conduct. Cessation of unlawful conduct after
such prior contact shall not render such court action moot under
any circumstances, and such injunctive relief shall lie even if
such person has ceased such unlawful conduct after such prior
contact. Such prior contact shall not be required if, in the
opinion of the consumer protection division, there is good cause
to believe that such person would evade service of process if
prior contact were made or that such person would destroy
relevant records if prior contact were made, or that such an
emergency exists that immediate and irreparable injury, loss, or
damage would occur as a result of such delay in obtaining a
temporary restraining order.
(b) An action brought under Subsection (a) of this section which
alleges a claim to relief under this section may be commenced in
the district court of the county in which the person against whom
it is brought resides, has his principal place of business, has
done business, or in the district court of the county where the
transaction occurred, or, on the consent of the parties, in a
district court of Travis County. The court may issue temporary
restraining orders, temporary or permanent injunctions to
restrain and prevent violations of this subchapter and such
injunctive relief shall be issued without bond.
(c) In addition to the request for a temporary restraining
order, or permanent injunction in a proceeding brought under
Subsection (a) of this section, the consumer protection division
may request, and the trier of fact may award, a civil penalty to
be paid to the state in an amount of:
(1) not more than $20,000 per violation; and
(2) if the act or practice that is the subject of the proceeding
was calculated to acquire or deprive money or other property from
a consumer who was 65 years of age or older when the act or
practice occurred, an additional amount of not more than
$250,000.
(d) The court may make such additional orders or judgments as
are necessary to compensate identifiable persons for actual
damages or to restore money or property, real or personal, which
may have been acquired by means of any unlawful act or practice.
Damages may not include any damages incurred beyond a point two
years prior to the institution of the action by the consumer
protection division. Orders of the court may also include the
appointment of a receiver or a sequestration of assets if a
person who has been ordered by a court to make restitution under
this section has failed to do so within three months after the
order to make restitution has become final and nonappealable.
(e) Any person who violates the terms of an injunction under
this section shall forfeit and pay to the state a civil penalty
of not more than $10,000 per violation, not to exceed $50,000. In
determining whether or not an injunction has been violated the
court shall take into consideration the maintenance of procedures
reasonably adapted to insure compliance with the injunction. For
the purposes of this section, the district court issuing the
injunction shall retain jurisdiction, and the cause shall be
continued, and in these cases, the consumer protection division,
or the district or county attorney with prior notice to the
consumer protection division, acting in the name of the state,
may petition for recovery of civil penalties under this section.
(f) An order of the court awarding civil penalties under
Subsection (e) of this section applies only to violations of the
injunction incurred prior to the awarding of the penalty order.
Second or subsequent violations of an injunction issued under
this section are subject to the same penalties set out in
Subsection (e) of this section.
(g) In determining the amount of penalty imposed under
Subsection (c), the trier of fact shall consider:
(1) the seriousness of the violation, including the nature,
circumstances, extent, and gravity of any prohibited act or
practice;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) the economic effect on the person against whom the penalty
is to be assessed;
(5) knowledge of the illegality of the act or practice; and
(6) any other matter that justice may require.
(h) In bringing or participating in an action under this
subchapter, the consumer protection division acts in the name of
the state and does not establish an attorney-client relationship
with another person, including a person to whom the consumer
protection division requests that the court award relief.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1977, 65th Leg., p. 602, ch. 216, Sec.
4, eff. May 23, 1977; Acts 1985, 69th Leg., ch. 564, Sec. 1, eff.
Aug. 26, 1985; Acts 1989, 71st Leg., ch. 1082, Sec. 8.01, eff.
Jan. 1, 1991; Acts 1991, 72nd Leg., ch. 242, Sec. 11.18, eff.
Sept. 1, 1991; Acts 1997, 75th Leg., ch. 388, Sec. 1, eff. May
28, 1997; Acts 2003, 78th Leg., ch. 360, Sec. 1, eff. Sept. 1,
2003.
Sec. 17.48. DUTY OF DISTRICT AND COUNTY ATTORNEY. (a) It is
the duty of the district and county attorneys to lend to the
consumer protection division any assistance requested in the
commencement and prosecutions of action under this subchapter.
(b) A district or county attorney, with prior written notice to
the consumer protection division, may institute and prosecute
actions seeking injunctive relief under this subchapter, after
complying with the prior contact provisions of Subsection (a) of
Section 17.47 of this subchapter. On request, the consumer
protection division shall assist the district or county attorney
in any action taken under this subchapter. If an action is
prosecuted by a district or county attorney alone, he shall make
a full report to the consumer protection division including the
final disposition of the matter. No district or county attorney
may bring an action under this section against any licensed
insurer or licensed insurance agent transacting business under
the authority and jurisdiction of the State Board of Insurance
unless first requested in writing to do so by the State Board of
Insurance, the commissioner of insurance, or the consumer
protection division pursuant to a request by the State Board of
Insurance or commissioner of insurance.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973.
Sec. 17.49. EXEMPTIONS. (a) Nothing in this subchapter shall
apply to the owner or employees of a regularly published
newspaper, magazine, or telephone directory, or broadcast
station, or billboard, wherein any advertisement in violation of
this subchapter is published or disseminated, unless it is
established that the owner or employees of the advertising medium
have knowledge of the false, deceptive, or misleading acts or
practices declared to be unlawful by this subchapter, or had a
direct or substantial financial interest in the sale or
distribution of the unlawfully advertised good or service.
Financial interest as used in this section relates to an
expectation which would be the direct result of such
advertisement.
(b) Nothing in this subchapter shall apply to acts or practices
authorized under specific rules or regulations promulgated by the
Federal Trade Commission under Section 5(a)(1) of the Federal
Trade Commission Act [15 U.S.C.A. 45(a)(1)]. The provisions of
this subchapter do apply to any act or practice prohibited or not
specifically authorized by a rule or regulation of the Federal
Trade Commission. An act or practice is not specifically
authorized if no rule or regulation has been issued on the act or
practice.
(c) Nothing in this subchapter shall apply to a claim for
damages based on the rendering of a professional service, the
essence of which is the providing of advice, judgment, opinion,
or similar professional skill. This exemption does not apply to:
(1) an express misrepresentation of a material fact that cannot
be characterized as advice, judgment, or opinion;
(2) a failure to disclose information in violation of Section
17.46(b)(24);
(3) an unconscionable action or course of action that cannot be
characterized as advice, judgment, or opinion;
(4) breach of an express warranty that cannot be characterized
as advice, judgment, or opinion; or
(5) a violation of Section 17.46(b)(26).
(d) Subsection (c) applies to a cause of action brought against
the person who provided the professional service and a cause of
action brought against any entity that could be found to be
vicariously liable for the person's conduct.
(e) Except as specifically provided by Subsections (b) and (h),
Section 17.50, nothing in this subchapter shall apply to a cause
of action for bodily injury or death or for the infliction of
mental anguish.
(f) Nothing in the subchapter shall apply to a claim arising out
of a written contract if:
(1) the contract relates to a transaction, a project, or a set
of transactions related to the same project involving total
consideration by the consumer of more than $100,000;
(2) in negotiating the contract the consumer is represented by
legal counsel who is not directly or indirectly identified,
suggested, or selected by the defendant or an agent of the
defendant; and
(3) the contract does not involve the consumer's residence.
(g) Nothing in this subchapter shall apply to a cause of action
arising from a transaction, a project, or a set of transactions
relating to the same project, involving total consideration by
the consumer of more than $500,000, other than a cause of action
involving a consumer's residence.
(h) A person who violates Section 17.46(b)(26) is jointly and
severally liable under that subdivision for actual damages, court
costs, and attorney's fees. Subject to Chapter 41, Civil Practice
and Remedies Code, exemplary damages may be awarded in the event
of fraud or malice.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1995, 74th Leg., ch. 414, Sec. 4, eff.
Sept. 1, 1995; Acts 2001, 77th Leg., ch. 1229, Sec. 28, eff. June
1, 2002; Acts 2003, 78th Leg., ch. 1276, Sec. 4.001(b), eff.
Sept. 1, 2003.
Sec. 17.50. RELIEF FOR CONSUMERS. (a) A consumer may maintain
an action where any of the following constitute a producing cause
of economic damages or damages for mental anguish:
(1) the use or employment by any person of a false, misleading,
or deceptive act or practice that is:
(A) specifically enumerated in a subdivision of Subsection (b)
of Section 17.46 of this subchapter; and
(B) relied on by a consumer to the consumer's detriment;
(2) breach of an express or implied warranty;
(3) any unconscionable action or course of action by any person;
or
(4) the use or employment by any person of an act or practice in
violation of Chapter 541, Insurance Code.
(b) In a suit filed under this section, each consumer who
prevails may obtain:
(1) the amount of economic damages found by the trier of fact.
If the trier of fact finds that the conduct of the defendant was
committed knowingly, the consumer may also recover damages for
mental anguish, as found by the trier of fact, and the trier of
fact may award not more than three times the amount of economic
damages; or if the trier of fact finds the conduct was committed
intentionally, the consumer may recover damages for mental
anguish, as found by the trier of fact, and the trier of fact may
award not more than three times the amount of damages for mental
anguish and economic damages;
(2) an order enjoining such acts or failure to act;
(3) orders necessary to restore to any party to the suit any
money or property, real or personal, which may have been acquired
in violation of this subchapter; and
(4) any other relief which the court deems proper, including the
appointment of a receiver or the revocation of a license or
certificate authorizing a person to engage in business in this
state if the judgment has not been satisfied within three months
of the date of the final judgment. The court may not revoke or
suspend a license to do business in this state or appoint a
receiver to take over the affairs of a person who has failed to
satisfy a judgment if the person is a licensee of or regulated by
a state agency which has statutory authority to revoke or suspend
a license or to appoint a receiver or trustee. Costs and fees of
such receivership or other relief shall be assessed against the
defendant.
(c) On a finding by the court that an action under this section
was groundless in fact or law or brought in bad faith, or brought
for the purpose of harassment, the court shall award to the
defendant reasonable and necessary attorneys' fees and court
costs.
(d) Each consumer who prevails shall be awarded court costs and
reasonable and necessary attorneys' fees.
(e) In computing additional damages under Subsection (b),
attorneys' fees, costs, and prejudgment interest may not be
considered.
(f) A court may not award prejudgment interest applicable to:
(1) damages for future loss under this subchapter; or
(2) additional damages under Subsection (b).
(g) Chapter 41, Civil Practice and Remedies Code, does not apply
to a cause of action brought under this subchapter.
(h) Notwithstanding any other provision of this subchapter, if a
claimant is granted the right to bring a cause of action under
this subchapter by another law, the claimant is not limited to
recovery of economic damages only, but may recover any actual
damages incurred by the claimant, without regard to whether the
conduct of the defendant was committed intentionally. For the
purpose of the recovery of damages for a cause of action
described by this subsection only, a reference in this subchapter
to economic damages means actual damages. In applying Subsection
(b)(1) to an award of damages under this subsection, the trier of
fact is authorized to award a total of not more than three times
actual damages, in accordance with that subsection.
Added by Acts 1973, 63rd Leg., p. 322, ch. 143, Sec. 1, eff. May
21, 1973. Amended by Acts 1977, 65th Leg., p. 603, ch. 216, Sec.
5, eff. May 23, 1977; Acts 1979, 66th Leg., p. 1329, ch. 603,
Sec. 4, eff. Aug. 27, 1979; Acts 1989, 71st Leg., ch. 380, Sec.
2, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 414, Sec. 5,
eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 11.102, eff. September 1, 2005.
Sec. 17.501. CONSUMER PROTECTION DIVISION PARTICIPATION IN CLASS
ACTION. (a) A consumer filing an action under Section 17.50
that is to be maintained as a class action shall send to the
consumer protection division:
(1) a copy of the notice required by Section 17.505(a), by
registered or certified mail, at the same time the notice is
given to the person complained against; and
(2) a copy of the petition in the action not later than the
earlier of:
(A) the 30th day after the date the petition is filed; or
(B) the 10th day before the date of any hearing on class
certification or a proposed settlement.
(b) The court shall abate the action for 60 days if the court
finds that notice was not provided to the consumer protection
division as required by Subsection (a).
(c) The court, on a showing of good cause, may allow the
consumer protection division, as representative of the public, to
intervene in an action to which this section applies. The
consumer protection division shall file its motion for
intervention with the court before which the action is pending
and serve a copy of the motion on each party to the action.
Added by Acts 2003, 78th Leg., ch. 360, Sec. 2, eff. Sept. 1,
2003.
Sec. 17.505. NOTICE; INSPECTION. (a) As a prerequisite to