How To Ensure DTPA Compliance

For instance, Texas' DTPA covers these aspects of breach of warranty:

• Express warranty ' either written or verbal;
• Warranties of merchantability ' in which the product can do what it is designed for; and
• Fitness for a particular purpose in which the product can do what it was designed to do.

The Act also covers unconscionable acts that take advantage of consumers' lack of knowledge, capacity or ability.

The Lone Star State's act also covers false, misleading or deceptive acts, some of which include:

• False misleading statements;
• False advertising for sale of going out of business;
• Promoting pyramid schemes; and
• Advertising goods or services not intended for sale.

Illinois has a statute for business transactions called the Uniform DTPA. It defines deceptive trade practices that in the course of a company's business:

• Pass off goods or services as those of another company;
• Cause likelihood of confusion or misunderstanding as to source of goods;
• Make false or misleading statements of fact concerning price reduction; or
• Engage in any other conduct that similarly creates likelihood of confusion or misunderstanding.

Other states have similar DTPAs. Each Act sets guidelines on how consumers can file a claim for damages in their state. Consumers file claims with the state attorney general. In most cases, a DTPA claim is governed under that state's jurisdiction ' an issue that the emergence of e-commerce has complicated. Because companies advertise and sell online, the laws governing jurisdiction are applied differently than in the case of offline consumer sales. Most states have agreed that the location where a consumer files a claim is where jurisdiction resides. However, the proliferation of e-commerce has caused many courts to render varied decisions. While courts continue to wrestle with the issue, generally an online company that has directed its activity in a substantial way to a state is subject to jurisdiction in that state.