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Understanding deceptive trade practices

On Behalf of | Nov 10, 2017 | Business Litigation

Some companies in the state of Texas are guilty of employing unethical business practices in order to manipulate consumers into buying their products or services. According to the Federal Trade Commission Act, these actions can be classified as either deceptive or unfair, and laws have been put into place in order to protect consumers. Deceptive trade practices include a clear attempt to trick consumers, whether by false statements, omission of essential facts or propagandistic attacks on competitors. Unfair practices, on the other hand, can include actions which result in significant harm to the consumers.

The Texas Office of the Attorney General warns that deceptive trade practices can take many forms. It could include false claims about its own products, or an unethical manipulation of the consumer’s circumstances. For instance, it is unlawful to take advantage of a consumer’s lack of language skills to make a sale. Another violation is to make false claims about a product’s effectiveness. In the service industry, companies may not fabricate a list of needed repairs or services. Raising prices to an excessive level after a natural disaster or some other catastrophe is also illegal. In addition, any form of false advertising, whether falsely bolstering their own product, or inaccurately attacking another, may be prosecutable.

While it may be possible to rectify a complaint directly with the company, some instances of deceptive trade practices may need to be taken to court. In some cases, the OAG may need to intervene and conduct an investigation in order to protect consumers as a whole from a blatantly dishonest company.