Texas House Bill HB2846

Texas 2011 - 82nd Regular

• Out of House Committee: 4/19/11
• Introduced: 3/10/11
• Refer: 3/17/11
• Report Pass: 4/13/11

Caption

Relating to certain procedures and civil penalties under the Deceptive Trade Practices-Consumer Protection Act.

Impact

The proposed amendments are designed to enhance the enforcement capabilities of the consumer protection division, strengthening the legal recourse available to consumers. One notable change includes increasing the penalty amounts in cases where violations specifically target individuals aged 65 and older, with additional penalties of up to $250,000. This aims to provide a deterrent effect against businesses that exploit older consumers, thereby reinforcing consumer trust in the marketplace.

Summary

House Bill 2846 aims to amend certain procedures and civil penalties under the Deceptive Trade Practices-Consumer Protection Act in Texas. The bill seeks to update the law to allow the consumer protection division to impose significant civil penalties on businesses that violate consumer rights, particularly affecting vulnerable populations such as elderly consumers. It revises how penalties are calculated, with provisions allowing for punitive measures not exceeding $10,000 per violation or 25 percent of the business's net worth, creating a more stringent enforcement mechanism against deceptive trade practices.

Contention

The bill's discussion may invoke debate among stakeholders, especially regarding the balance between protecting consumer rights and ensuring that businesses are not overly burdened by regulatory compliance costs. Supporters argue that stronger penalties are necessary to deter fraudulent practices, while opponents might contend that excessive penalties could stifle legitimate business operations. The bill's passage could represent a shift in state policy toward prioritizing consumer advocacy over business interests, potentially leading to further legislative scrutiny regarding business practices.