Texas House Bill HB3702

Texas 2019 - 86th Regular

Caption

Relating to the amount of civil penalties the attorney general may seek to recover under the Deceptive Trade Practices-Consumer Protection Act.

Impact

The changes introduced by HB3702 are significant for consumer protection law in Texas. By increasing the potential penalty for violations against older consumers, the bill underscores the state's commitment to safeguarding vulnerable populations in the marketplace. This change could deter deceptive practices by businesses, ensuring they adhere more closely to fair trading standards. Additionally, the adjustments reflect a broader understanding of the importance of consumer protection, particularly for the elderly, who may lack the resources or knowledge to defend themselves effectively against such practices.

Summary

House Bill 3702 aims to amend the Business & Commerce Code, specifically addressing the civil penalties that the attorney general can seek under the Deceptive Trade Practices-Consumer Protection Act. The bill proposes an increase in the maximum civil penalty per violation from $20,000 to $10,000, alongside a provision that allows for an additional penalty of up to $250,000 if the violation was intentionally designed to deceive or harm a consumer aged 65 or older. This adjustment seeks to enhance protections for older consumers who may be more vulnerable to deceptive trade practices.

Contention

Discussion around HB3702 may center on whether the increase in penalties is sufficient for curbing deceptive practices. Proponents of the bill argue that the higher penalties will serve as a strong deterrent against businesses that may exploit older consumers. However, opponents could express concerns about the financial implications for legitimate businesses that may inadvertently violate these regulations. Ensuring that the penalties are both effective and fair is likely to be a point of contention during legislative discussions surrounding the bill.