Yes. Under the Texas Deceptive Trade Practices Act (DTPA), a business that buys or leases goods or services can be a “consumer” with the right to sue. A business with assets of $25 million or more generally cannot. A successful DTPA claim can bring up to three times your economic damages and mandatory attorney’s fees, which makes it far more powerful than an ordinary contract claim.
Who counts as a consumer?
A consumer is an individual, partnership, corporation or other entity that seeks or acquires goods or services by purchase or lease. The goods or services must form the basis of your complaint. You don’t need a contract directly with the defendant: a manufacturer or installer you never paid can still be liable if its conduct caused your loss.
What conduct does the DTPA cover?
- The “laundry list” of specific false, misleading or deceptive acts, such as misrepresenting the quality, origin or characteristics of a product, or failing to disclose known information to induce a purchase.
- Breach of an express or implied warranty.
- Unconscionable conduct that takes advantage of a buyer’s lack of knowledge or experience to a grossly unfair degree.
Which business deals are exempt?
The DTPA has important exemptions that often decide business cases:
- Transactions under a written contract worth more than $100,000, where you were represented by your own lawyer in negotiating it.
- Transactions worth more than $500,000, other than a purchase of your home.
- Professional advice, judgment or opinion. Misrepresentations of fact by professionals are still covered.
A DTPA waiver is enforceable only if it meets strict requirements, including that you were represented by a lawyer and the waiver uses specific statutory language. Many form contracts don’t qualify.
What can I recover?
| Defendant’s conduct | Recovery |
|---|---|
| Any DTPA violation | Economic damages, plus mandatory attorney’s fees and costs |
| Committed knowingly | Up to three times economic damages, plus mental anguish damages |
| Committed intentionally | Up to three times economic and mental anguish damages |
What deadlines apply?
You must send 60 days’ written notice describing your complaint and the amount of your damages and expenses, including attorney’s fees, before filing suit. The notice is not needed if limitations is about to run. The DTPA’s statute of limitations is two years from the deceptive act or from when you discovered it or should have. That is shorter than the four years for contract and fraud claims, so don’t wait.
From our case files
- Multi-million-dollar DTPA verdict. We won a Deceptive Trade Practices Act business lawsuit in a multi-million-dollar case (2024).
- Full refund on a misrepresented vehicle. A $150,000 custom pickup was sold without the promised title and built for the EU market, not legal to drive in the U.S. We obtained a full refund of the purchase price (2024).
- Defective equipment, seven-figure result. A manufacturer’s defective equipment cost less than $30,000. We settled the case for more than $1,000,000 (2015).
Client names are withheld for confidentiality. Every case turns on its own facts, and past results do not guarantee a similar outcome. See more representative results.
The Burk Law Firm represents Texas businesses in DTPA, fraud and contract cases. Call (512) 306-9828.
Related: How Do You Prove Business Fraud in Texas? · What Can You Recover for Breach of Contract in Texas? · What Should You Do Before Filing a Business Lawsuit in Texas?
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.