As a consumer, you should be able to trust that the company you work with is legitimate, fully licensed, and in compliance with all applicable laws and regulations. Unfortunately, some bad actors take advantage of their customers and engage in deceptive practices, many of which can lead to serious consequences. It’s important to note that the Texas legislature is committed to protecting the rights of consumers from businesses acting in bad faith. The Texas Deceptive Trade Practices—Consumer Protection Act (DTPA) remains one of the most robust tools that can be used to protect Texas customers from fraud, unfair business practices, and other deceptive business tactics. Consumers can use the DTPA to hold businesses accountable for engaging in fraudulent, misleading, or unfair trade practices that can cause significant harm to individual customers and the public.
Recognizing common DTPA violations can be challenging, which is why it’s highly recommended that you enlist the guidance of a highly qualified and experienced Texas real estate and corporate law attorney who can support you along the way. Whether you suspect that you’ve been subjected to dubious or fraudulent construction or real estate transactions, your knowledgeable Texas construction lawyer can work with you to identify the most strategic path forward. Let’s take a closer look at some of the most common deceptive trade practices in construction and some strategies you can use to exercise your consumer protections against fraudulent contractors.
Identifying Common Deceptive Construction Practices in Texas
Fraudulent and deceptive business practices take many forms. Essentially, any failure to deliver on promises made to consumers may signal a DTPA violation, and it’s often worth evaluating your options with an experienced Texas construction dispute attorney. Below are just a few examples of deceptive or misleading construction practices that can occur in the construction industry.
False Promises or Misleading Advertising
Under the DTPA, “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,” which means that a company cannot make any promises or statements about their services that they know are deceptive or untrue. False advertising may include efforts like claiming that a product or service is free, when the reality is that it comes with hidden costs or fees. In the construction industry, a contractor or service cannot make misleading statements about the origin of its products or falsely represent the company’s pricing models. Alternatively, deceptive advertising in the real estate industry often takes the form of misrepresenting the square footage, hiding significant structural defects, and other underhanded tactics.
Misrepresentation of Work or Services
Another common DTPA violation that may be associated with contractor fraud in Texas concerns claiming that the services will be provided at a certain quality but then failing to meet these standards. For example, a construction company that falsely claims that all of its workers and machinery have passed all required safety inspections and certifications may be in violation of the DTPA.
Failure to Honor a Contract or Service Agreement
When you enter into a contract with a construction company, you are agreeing to the proposed scope of work and the services you expect to receive. If the terms of the contract are not honored or fulfilled, this could be actionable under the DTPA. For instance, if the contractor promised you that the construction work would begin by a specific date and then a considerable amount of time has passed after that date, you can raise these concerns with your Texas construction dispute attorney to explore your options.
Filing a Lawsuit Under the DTPA
If you think that a contractor or company has deceived you, your first step should be to share your concerns with a highly experienced and dedicated Texas attorney. Together, you can assess the specific details of your situation and determine whether filing a lawsuit under the DTPA is a viable option. It’s important to recognize that you will need to be able to meet the legal definition of a “consumer” in order to seek remedies under the DTPA. Essentially, a 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.” Should you decide to move forward with a lawsuit, you will need to notify the business at least 60 days before you file a formal demand letter that outlines your grievances and the damages you are seeking to recover. The 60-day notice period provides an opportunity for settlement negotiations between the parties as a potential alternative to litigation. If litigation becomes necessary, you and your attorney can file the lawsuit in the appropriate court and prepare to move through every step of the upcoming process.
Types of Damages Available to Texas Consumers
A successful lawsuit under the DTPA can recover you several types of damages. For instance, you may be able to recover actual damages that cover the quantifiable losses you suffered as a result of the other party’s fraudulent actions. If your case involved intentional misconduct on the part of the business, you may be entitled to receive up to three times the amount of actual damages owed to you. The DTPA also recognizes that victims of deceptive business practices can endure significant distress and mental anguish. If you prevail in your lawsuit, you may be able to recover damages to account for the mental and emotional pain you suffered, as well as having the at-fault party cover all attorneys’ fees.
Get Started With Texas’ Go-To Law Firm Today
At Sewell Sewell Beard LLC, our clients are far more than case numbers to be resolved. Our client-centered legal services always put your needs first, and we are committed to treating every client we serve with the care and attention they deserve. If you are struggling with a real estate issue, please call our Prosper, Texas office at (972) 777-5390 or our Jasper, Alabama office at (205) 544-2350 today to get started with a highly qualified and trusted attorney.