Can a business violate the Texas DTPA by failing to disclose material information?
Direct Answer
Yes. Under the Texas DTPA, a business can be liable for failing to disclose information that a consumer would consider material to their transaction. This includes known defects, prior damage, hidden fees, or other facts that would influence a reasonable consumer's decision. The failure to disclose must be material, meaning it would likely affect the consumer's choice to purchase or the price they would pay.
Rule Under Texas Law
- Tex. Bus. & Com. Code § 17.46(b)(24) prohibits failing to disclose information known at the time of the transaction.
- The information must be known to the seller and intended to induce the consumer to enter a transaction.
- Non-disclosure is actionable when the consumer would not have entered the transaction if they had known.
- There is no general duty to disclose; the duty arises when information is material and the seller has superior knowledge.
What You Must Prove
- The defendant knew material information at the time of the transaction.
- The defendant failed to disclose that information to the consumer.
- The non-disclosure was intended to induce the consumer to enter the transaction.
- The consumer suffered actual damages as a result.
Common Defenses
- The information was disclosed or readily available to the consumer.
- The information was not material to the transaction.
- The defendant did not know the information at the time of the transaction.
- The consumer would have entered the transaction regardless of disclosure.
Related Texas DTPA Pages
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