The Texas Deceptive Trade Practices Act (DTPA) prohibits businesses, including car dealerships, from engaging in false, misleading, or deceptive practices that deceive or harm consumers. Some ways that car dealerships may violate the Texas DTPA include:
- Misrepresenting the condition of the vehicle: Dealerships may advertise a vehicle as being in excellent condition, when in reality it has serious mechanical problems.
- Misrepresenting the price of the vehicle: Dealerships may advertise a vehicle at a certain price, but then add on hidden fees or charges that were not disclosed in the original advertisement.
- Failing to disclose information about the vehicle: Dealerships may fail to disclose information about a vehicle’s history, such as if it was previously in an accident or has a salvage title.
- Engaging in “bait and switch” tactics: Dealerships may lure customers in with an advertisement for a specific vehicle, but then try to sell them a different vehicle that is more expensive or less desirable.
- Failing to honor warranties or service agreements: Dealerships may fail to honor warranties or service agreements, leaving consumers with costly repairs that should have been covered.
- Adding thousands of dollars worth of “dealer market value” adjustments to the advertised price of the car after a potential buyer comes to the car lot–a class “bait and switch” tactic;
- Surreptitiously hiding extra charges, such as the manufacturer’s destination charge, twice in the salesperson’s term sheet, which is presented to the car buyer in a rushed and confusing manner.
If a car dealership is found to have violated the Texas DTPA, consumers may be entitled to various remedies, such as rescinding the contract, recovering damages, and recovering attorney’s fees.
