86R6813 CAE-F
By: Buckingham, et al. S.B. No. 1189
A BILL TO BE ENTITLED
AN ACT
relating to certain deceptive advertising of legal services;
imposing civil penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 81, Government Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. DECEPTIVE ADVERTISING PRACTICES
Sec. 81.151. DEFINITIONS. In this subchapter:
(1) "Advertisement" means a communication that
provides information promoting a person's provision of legal
services. The term includes a communication through television,
radio, newspaper or other periodical, outdoor display, or other
written, electronic, or recorded communication, including an
Internet website operated for a commercial purpose.
(2) "Soliciting" means offering to provide legal
services through a written, recorded, or electronic communication
or by an in-person, telephone, or real-time electronic contact.
Sec. 81.152. PROHIBITED ADVERTISING. An advertisement for
legal services may not:
(1) present the advertisement as a "medical alert,"
"health alert," "consumer alert," "public service announcement,"
or similar phrase;
(2) display the logo of a federal or state government
agency in a manner that suggests affiliation with or sponsorship by
that agency; or
(3) use the term "recall" when referring to a product
that has not been recalled by a government agency or through an
agreement between a manufacturer and government agency.
Sec. 81.153. REQUIRED WARNINGS AND DISCLOSURES. (a) An
advertisement for legal services must disclose:
(1) at the beginning of the advertisement, "This is a
paid advertisement for legal services.";
(2) the identity of the sponsor of the advertisement;
and
(3) either:
(A) the identity of the attorney or law firm that
provides legal services to a client; or
(B) the manner in which a case is referred to an
attorney or law firm if the sponsor of the advertisement is not
legally authorized to provide legal services to a person responding
to the advertisement.
(b) An advertisement for legal services soliciting clients
who may allege an injury from a prescription drug approved by the
United States Food and Drug Administration must:
(1) include the warning: "Do not stop taking a
prescribed medication without first consulting with your
physician. Discontinuing a prescribed medication without seeking
your physician's advice can result in injury or death."; and
(2) disclose that the drug is approved by the United
States Food and Drug Administration unless the product has been
recalled or withdrawn.
(c) An advertisement for legal services soliciting clients
who may allege an injury from a medical device approved by the
United States Food and Drug Administration must disclose that the
medical device is approved by the United States Food and Drug
Administration unless the product has been recalled or withdrawn.
Sec. 81.154. FORM OF REQUIRED WARNINGS AND DISCLOSURES.
(a) Any warning or disclosure statement required by this
subchapter to appear in an advertisement must be presented clearly
and conspicuously.
(b) A written disclosure must be legible and, if televised
or displayed electronically, must be displayed for sufficient time
to enable the viewer to easily see and read the disclosure.
(c) A verbal disclosure must be audible and intelligible.
Sec. 81.155. INJUNCTION; RESTITUTION. (a) If the attorney
general or the prosecuting attorney in the county in which a
violation of this subchapter occurs has reason to believe that a
person is engaging in, has engaged in, or is about to engage in an
act or practice that violates this subchapter, the attorney general
or prosecuting attorney may bring an action in the name of the state
against the person to restrain that act or practice by temporary or
permanent injunction if an injunction is in the public interest.
(b) If a court issues a permanent injunction to restrain and
prevent a violation of this subchapter, the court may make an
additional order requiring restitution to a victim for medical
expenses or other expenses related to the violation.
Sec. 81.156. CIVIL PENALTY. (a) A person who violates this
subchapter is liable to the state for a civil penalty in an amount
not to exceed $20,000 for each violation. Each advertisement that
violates this subchapter constitutes a separate violation.
(b) The attorney general or the prosecuting attorney in the
county in which a violation occurs may bring suit to recover the
civil penalty imposed under Subsection (a).
(c) The attorney general or prosecuting attorney may
recover reasonable expenses incurred in obtaining a civil penalty
under this section, including court costs, attorney's fees,
investigative costs, witness fees, and deposition expenses.
(d) The civil penalty provided by this section is in
addition to injunctive relief or any other remedy that may be
granted under Section 81.155.
Sec. 81.157. CONSTRUCTION OF SUBCHAPTER. This subchapter
may not be construed to limit or otherwise affect the authority of
the Supreme Court of Texas to regulate the practice of law, enforce
the Texas Disciplinary Rules of Professional Conduct, or discipline
persons admitted to the state bar.
SECTION 2. The change in law made by this Act applies only
to a cause of action that accrues on or after the effective date of
this Act. A cause of action that accrued before the effective date
of this Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2019.