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What are deceptive trade practices?

On Behalf of | Aug 6, 2015 | Business Litigation

Like other business owners or marketers in Texas, you may make grand assertions about the effectiveness of your produce or the quality of your services. While this is not generally a problem, business disputes may arise if you are overly deceptive in your claims. As a result of false advertising, you could face drawn out business litigation, which may adversely affect your bottom line.

If you engage in activities that are meant to mislead the public, it may be considered a deceptive trade practices. This may include claiming that goods are original or new when they are actually used, altered or second-hand; misleading consumers as to the geographic origin of the products or services you provide; or passing off others’ products as your own, or your products as those of others. Additionally, the use of unfair provisions in your contracts, engaging in coercive sales and collection tactics, and taking advantage of certain circumstances may also qualify as deceptive trade practices.

It is generally believed that these types of tactics have a negative impact on consumers, as well as the general public. As such, Texas state law prohibits the use of deceptive trade practices. Being accused of, or found guilty of, employing these tactics could have a significant impact on your business. At the most basic level, your business’ reputation may be negatively affected. Furthermore, you could be ordered to pay damages. There are a number of factors that may affect the amount of damages you are required to pay, including the severity of the harm caused by your use of deceptive trade practices and whether you intentionally engaged in these tactics.

This post has provided an overview of deceptive trade practices. It is important for you to understand, however, that the circumstances of each situation may be unique. Therefore, you should not consider this as legal advice. Instead, this should only be taken as general information.


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