What is the Deceptive Trade Practices and Consumer Protection Act? The Deceptive Trade Practices and Consumer Protection Act, commonly referred to as the “DTPA.” The DTPA is designed to protect consumers against fraud, deception and misrepresentation in the market place. It is really several laws in one. First, the DTPA specifically protects consumers against a “laundry list” of prohibited activities on the part of sellers. In addition, the DTPA allows consumers to seek a remedy for other deceptive acts or misrepresentations if encountered in the purchase of goods and services.

What does a consumer need to show to receive a remedy under the DTPA? To use the DTPA, a person need show only three things: 1) that he or she is a consumer; 2) that the other party committed a false or misleading act; and 3) that the false or misleading act was a producing cause of damage to the consumer. Further, consumers are defined very broadly under the DTPA. A consumer is any person (or corporation) that seeks or acquires, either through purchase or lease, any good or service.

Is it cost effective to seek a remedy under the DTPA? What really makes the DTPA different is that it is designed to be used by the average consumer. People often assume that it’s just too expensive to hire an attorney to try and recover a $500 damage (usually that is true). But under the DTPA, a consumer may be entitled to recover up to 3 times the amount of his loss plus recover his attorney fees in addition. In this way, the DTPA allows the small consumer to be the real policeman of the market place against unscrupulous merchants. The DTPA is truly the consumers’ best friend, even if relatively small amounts of money are involved.

What is the "Lemon Law" and when does it apply? The Lemon Law is part of the Texas Motor Vehicle Commission Code. It is, in essence, a law that deals with enforcement of automobile warranties. It establishes standards that new motor vehicles must meet and provides administrative remedies against the manufacturer, against the converter and against the distributor for their enforcement. The law provides that a manufacturer (or converter or distributor) has a duty to make all repairs necessary to conform the vehicle to the condition it was warrantied to have on purchase.

What makes a car a "Lemon"? The law says: If a defect or condition exists that creates a serious safety hazard; or if it substantially impairs the use or the market value of the vehicle, and the manufacturer had a reasonable number of attempts to repair the vehicle but doesn’t, that under the law this vehicle is a lemon. Once the “lemon” standard is met, the manufacturer must either replace the motor vehicle with a comparable one or take the vehicle back and refund the full purchase price to the buyer (less a reasonable allowance for actual use of the vehicle). Why use the Lemon Law rather than the DTPA?

What remedies should I seek if my car is a "Lemon"? The Lemon Law is really an alternative to litigation. It is a structured administrative process defined by rules that allow consumers to handle their complaint directly without the need of attorneys. In some regards, that makes it more efficient. However, damages that may be recovered are strictly limited and may not be adequate in all cases. It is important to note that the Lemon Law is not an exclusive remedy to problems with cars. In many cases, the DTPA may be used in place of or in addition to options available under the Lemon Law, so it’s always a good idea to check before proceeding.