Texas 2025 - 89th Regular

Texas Senate Bill SB2567 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: West S.B. No. 2567
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the deceptive trade practice of failure to disclose
9	9	information regarding the use of artificial intelligence system or
10	10	algorithmic pricing systems for setting of price.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	Section 1. Section. 17.45., Business & Commerce Code,is
13	13	amended by adding Subdivision (18) and (19) to read as follows:
14	14	(18) "Artificial intelligence system" means the use of
15	15	machine learning and related technologies that use data to train
16	16	statistical models for the purpose of enabling computer systems to
17	17	perform tasks normally associated with human intelligence or
18	18	perception, such as computer vision, speech or natural language
19	19	processing, and content generation.
20	20	(19) "Algorithmic pricing systems" means any
21	21	condition in which an artificial intelligence system when deployed
22	22	generates recommendations on pricing.
23	23	SECTION 2. Section 17.46(b), Business & Commerce Code, is
24	24	amended to read as follows:
25	25	(b) Except as provided in Subsection (d) of this section,
26	26	the term "false, misleading, or deceptive acts or practices"
27	27	includes, but is not limited to, the following acts:
28	28	(1) passing off goods or services as those of another;
29	29	(2) causing confusion or misunderstanding as to the
30	30	source, sponsorship, approval, or certification of goods or
31	31	services;
32	32	(3) causing confusion or misunderstanding as to
33	33	affiliation, connection, or association with, or certification by,
34	34	another;
35	35	(4) using deceptive representations or designations
36	36	of geographic origin in connection with goods or services;
37	37	(5) representing that goods or services have
38	38	sponsorship, approval, characteristics, ingredients, uses,
39	39	benefits, or quantities which they do not have or that a person has
40	40	a sponsorship, approval, status, affiliation, or connection which
41	41	the person does not;
42	42	(6) representing that goods are original or new if
43	43	they are deteriorated, reconditioned, reclaimed, used, or
44	44	secondhand;
45	45	(7) representing that goods or services are of a
46	46	particular standard, quality, or grade, or that goods are of a
47	47	particular style or model, if they are of another;
48	48	(8) disparaging the goods, services, or business of
49	49	another by false or misleading representation of facts;
50	50	(9) advertising goods or services with intent not to
51	51	sell them as advertised;
52	52	(10) advertising goods or services with intent not to
53	53	supply a reasonable expectable public demand, unless the
54	54	advertisements disclosed a limitation of quantity;
55	55	(11) making false or misleading statements of fact
56	56	concerning the reasons for, existence of, or amount of price
57	57	reductions;
58	58	(12) representing that an agreement confers or
59	59	involves rights, remedies, or obligations which it does not have or
60	60	involve, or which are prohibited by law;
61	61	(13) knowingly making false or misleading statements
62	62	of fact concerning the need for parts, replacement, or repair
63	63	service;
64	64	(14) misrepresenting the authority of a salesman,
65	65	representative or agent to negotiate the final terms of a consumer
66	66	transaction;
67	67	(15) basing a charge for the repair of any item in
68	68	whole or in part on a guaranty or warranty instead of on the value of
69	69	the actual repairs made or work to be performed on the item without
70	70	stating separately the charges for the work and the charge for the
71	71	warranty or guaranty, if any;
72	72	(16) disconnecting, turning back, or resetting the
73	73	odometer of any motor vehicle so as to reduce the number of miles
74	74	indicated on the odometer gauge;
75	75	(17) advertising of any sale by fraudulently
76	76	representing that a person is going out of business;
77	77	(18) advertising, selling, or distributing a card
78	78	which purports to be a prescription drug identification card issued
79	79	under Section 4151.152, Insurance Code, in accordance with rules
80	80	adopted by the commissioner of insurance, which offers a discount
81	81	on the purchase of health care goods or services from a third party
82	82	provider, and which is not evidence of insurance coverage, unless:
83	83	(A) the discount is authorized under an agreement
84	84	between the seller of the card and the provider of those goods and
85	85	services or the discount or card is offered to members of the
86	86	seller;
87	87	(B) the seller does not represent that the card
88	88	provides insurance coverage of any kind; and
89	89	(C) the discount is not false, misleading, or
90	90	deceptive;
91	91	(19) using or employing a chain referral sales plan in
92	92	connection with the sale or offer to sell of goods, merchandise, or
93	93	anything of value, which uses the sales technique, plan,
94	94	arrangement, or agreement in which the buyer or prospective buyer
95	95	is offered the opportunity to purchase merchandise or goods and in
96	96	connection with the purchase receives the seller's promise or
97	97	representation that the buyer shall have the right to receive
98	98	compensation or consideration in any form for furnishing to the
99	99	seller the names of other prospective buyers if receipt of the
100	100	compensation or consideration is contingent upon the occurrence of
101	101	an event subsequent to the time the buyer purchases the merchandise
102	102	or goods;
103	103	(20) representing that a guaranty or warranty confers
104	104	or involves rights or remedies which it does not have or involve,
105	105	provided, however, that nothing in this subchapter shall be
106	106	construed to expand the implied warranty of merchantability as
107	107	defined in Sections 2.314 through 2.318 and Sections 2A.212 through
108	108	2A.216 to involve obligations in excess of those which are
109	109	appropriate to the goods;
110	110	(21) promoting a pyramid promotional scheme, as
111	111	defined by Section 17.461;
112	112	(22) representing that work or services have been
113	113	performed on, or parts replaced in, goods when the work or services
114	114	were not performed or the parts replaced;
115	115	(23) filing suit founded upon a written contractual
116	116	obligation of and signed by the defendant to pay money arising out
117	117	of or based on a consumer transaction for goods, services, loans, or
118	118	extensions of credit intended primarily for personal, family,
119	119	household, or agricultural use in any county other than in the
120	120	county in which the defendant resides at the time of the
121	121	commencement of the action or in the county in which the defendant
122	122	in fact signed the contract; provided, however, that a violation of
123	123	this subsection shall not occur where it is shown by the person
124	124	filing such suit that the person neither knew or had reason to know
125	125	that the county in which such suit was filed was neither the county
126	126	in which the defendant resides at the commencement of the suit nor
127	127	the county in which the defendant in fact signed the contract;
128	128	(24) failing to disclose information concerning goods
129	129	or services which was known at the time of the transaction if such
130	130	failure to disclose such information was intended to induce the
131	131	consumer into a transaction into which the consumer would not have
132	132	entered had the information been disclosed;
133	133	(25) using the term "corporation," "incorporated," or
134	134	an abbreviation of either of those terms in the name of a business
135	135	entity that is not incorporated under the laws of this state or
136	136	another jurisdiction;
137	137	(26) selling, offering to sell, or illegally promoting
138	138	an annuity contract under Chapter 22, Acts of the 57th Legislature,
139	139	3rd Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
140	140	Statutes), with the intent that the annuity contract will be the
141	141	subject of a salary reduction agreement, as defined by that Act, if
142	142	the annuity contract is not an eligible qualified investment under
143	143	that Act;
144	144	(27) subject to Section 17.4625, taking advantage of a
145	145	disaster declared by the governor under Chapter 418, Government
146	146	Code, or by the president of the United States by:
147	147	(A) selling or leasing fuel, food, medicine,
148	148	lodging, building materials, construction tools, or another
149	149	necessity at an exorbitant or excessive price; or
150	150	(B) demanding an exorbitant or excessive price in
151	151	connection with the sale or lease of fuel, food, medicine, lodging,
152	152	building materials, construction tools, or another necessity;
153	153	(28) using the translation into a foreign language of
154	154	a title or other word, including "attorney," "immigration
155	155	consultant," "immigration expert," "lawyer," "licensed," "notary,"
156	156	and "notary public," in any written or electronic material,
157	157	including an advertisement, a business card, a letterhead,
158	158	stationery, a website, or an online video, in reference to a person
159	159	who is not an attorney in order to imply that the person is
160	160	authorized to practice law in the United States;
161	161	(29) delivering or distributing a solicitation in
162	162	connection with a good or service that:
163	163	(A) represents that the solicitation is sent on
164	164	behalf of a governmental entity when it is not; or
165	165	(B) resembles a governmental notice or form that
166	166	represents or implies that a criminal penalty may be imposed if the
167	167	recipient does not remit payment for the good or service;
168	168	(30) delivering or distributing a solicitation in
169	169	connection with a good or service that resembles a check or other
170	170	negotiable instrument or invoice, unless the portion of the
171	171	solicitation that resembles a check or other negotiable instrument
172	172	or invoice includes the following notice, clearly and conspicuously
173	173	printed in at least 18-point type:
174	174	"SPECIMEN-NON-NEGOTIABLE";
175	175	(31) in the production, sale, distribution, or
176	176	promotion of a synthetic substance that produces and is intended to
177	177	produce an effect when consumed or ingested similar to, or in excess
178	178	of, the effect of a controlled substance or controlled substance
179	179	analogue, as those terms are defined by Section 481.002, Health and
180	180	Safety Code:
181	181	(A) making a deceptive representation or
182	182	designation about the synthetic substance; or
183	183	(B) causing confusion or misunderstanding as to
184	184	the effects the synthetic substance causes when consumed or
185	185	ingested;
186	186	(32) a licensed public insurance adjuster directly or
187	187	indirectly soliciting employment, as defined by Section 38.01,
188	188	Penal Code, for an attorney, or a licensed public insurance
189	189	adjuster entering into a contract with an insured for the primary
190	190	purpose of referring the insured to an attorney without the intent
191	191	to actually perform the services customarily provided by a licensed
192	192	public insurance adjuster, provided that this subdivision may not
193	193	be construed to prohibit a licensed public insurance adjuster from
194	194	recommending a particular attorney to an insured;
195	195	(33) owning, operating, maintaining, or advertising a
196	196	massage establishment, as defined by Section 455.001, Occupations
197	197	Code, that:
198	198	(A) is not appropriately licensed under Chapter
199	199	455, Occupations Code, or is not in compliance with the applicable
200	200	licensing and other requirements of that chapter; or
201	201	(B) is not in compliance with an applicable local
202	202	ordinance relating to the licensing or regulation of massage
203	203	establishments; [or]
204	204	(34) a warrantor of a vehicle protection product
205	205	warranty using, in connection with the product, a name that
206	206	includes "casualty," "surety," "insurance," "mutual," or any other
207	207	word descriptive of an insurance business, including property or
208	208	casualty insurance, or a surety business; or
209	209	(35) failure to disclose information regarding use of
210	210	artificial intelligence system, or algorithmic pricing systems for
211	211	setting of price.
212	212	SECTION 3. The change in law made by this Act applies only
213	213	to an act or practice that occurs on or after the effective date of
214	214	this Act. An act or practice that occurs before the effective date
215	215	of this Act is governed by the law in effect on the date the act or
216	216	practice occurred, and the former law is continued in effect for
217	217	that purpose.
218	218	SECTION 4. This Act takes effect September 1, 2025.