Texas Senate Bill SB767

Texas 2009 - 81st Regular

Caption

Relating to the authority of the attorney general to bring suit on behalf of individuals injured by unlawful practices in restraint of trade.

Impact

The legislative change introduced by SB767 is anticipated to strengthen consumer protection by simplifying the process through which individuals can seek restitution for damages caused by illegal business practices. As it enables a single entity, the Attorney General's office, to represent numerous affected individuals, the bill could result in more efficient handling of such cases. This could potentially reduce the burden on individual plaintiffs to pursue claims separately, which might deter consumer enforcement of trade laws in the past due to complexities and costs.

Summary

SB767 aims to empower the Attorney General of Texas to bring lawsuits on behalf of individuals who have suffered injuries due to unlawful practices in restraint of trade. Specifically, the bill adds a new section to the Business & Commerce Code, outlining the conditions under which the Attorney General can act as parens patriae, representing not just governmental entities but also individual residents of Texas. This authorization allows the Attorney General to seek damages for affected individuals, providing a significant avenue for legal recourse against entities engaged in unfair competition or trade practices.

Contention

While the bill is designed to enhance the enforcement of trade laws and protect consumers, there are points of contention regarding the implications of such centralized authority. Some critics express concerns that empowering the Attorney General with broader legal standing might lead to an influx of lawsuits that could overwhelm the judicial system. Additionally, there are fears that it may set a precedent for governmental overreach into private business practices, raising questions about the balance of power between state authority and individual legal rights.

Additional_notes

The effective date of SB767 is contingent on legislative approval, with immediate effects necessitating a two-thirds vote. If not passed with immediate effect, it is scheduled to come into force on September 1, 2009. This timeline reflects the urgency and potential transformative impact the legislation is expected to have on trade practices within the state.