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CHAPTER 32. FRAUD
§ 32.42. DECEPTIVE BUSINESS PRACTICES.
(a) For purposes of this section:
(1) "Adulterated" means varying from the standard of
composition or quality prescribed by law or set by established
commercial usage.
(2) "Business" includes trade and commerce and
advertising, selling, and buying service or property.
(3) "Commodity" means any tangible or intangible
personal property.
(4) "Contest" includes sweepstake, puzzle, and game of
chance.
(5) "Deceptive sales contest" means a sales contest:
(A) that misrepresents the participant's chance
of winning a prize;
(B) that fails to disclose to participants on a
conspicuously displayed permanent poster (if the contest is
conducted by or through a retail outlet) or on each card game piece,
entry blank, or other paraphernalia required for participation in
the contest (if the contest is not conducted by or through a retail
outlet):
(i) the geographical area or number of
outlets in which the contest is to be conducted;
(ii) an accurate description of each type
of prize;
(iii) the minimum number and minimum amount
of cash prizes; and
(iv) the minimum number of each other type
of prize; or
(C) that is manipulated or rigged so that prizes
are given to predetermined persons or retail establishments. A
sales contest is not deceptive if the total value of prizes to each
retail outlet is in a uniform ratio to the number of game pieces
distributed to that outlet.
(6) "Mislabeled" means varying from the standard of
truth or disclosure in labeling prescribed by law or set by
established commercial usage.
(7) "Prize" includes gift, discount, coupon,
certificate, gratuity, and any other thing of value awarded in a
sales contest.
(8) "Sales contest" means a contest in connection with
the sale of a commodity or service by which a person may, as
determined by drawing, guessing, matching, or chance, receive a
prize and which is not regulated by the rules of a federal
regulatory agency.
(9) "Sell" and "sale" include offer for sale,
advertise for sale, expose for sale, keep for the purpose of sale,
deliver for or after sale, solicit and offer to buy, and every
disposition for value.
(b) A person commits an offense if in the course of business
he intentionally, knowingly, recklessly, or with criminal
negligence commits one or more of the following deceptive business
practices:
(1) using, selling, or possessing for use or sale a
false weight or measure, or any other device for falsely
determining or recording any quality or quantity;
(2) selling less than the represented quantity of a
property or service;
(3) taking more than the represented quantity of
property or service when as a buyer the actor furnishes the weight
or measure;
(4) selling an adulterated or mislabeled commodity;
(5) passing off property or service as that of
another;
(6) representing that a commodity is original or new
if it is deteriorated, altered, rebuilt, reconditioned, reclaimed,
used, or secondhand;
(7) representing that a commodity or service is of a
particular style, grade, or model if it is of another;
(8) advertising property or service with intent:
(A) not to sell it as advertised, or
(B) not to supply reasonably expectable public
demand, unless the advertising adequately discloses a time or
quantity limit;
(9) representing the price of property or service
falsely or in a way tending to mislead;
(10) making a materially false or misleading statement
of fact concerning the reason for, existence of, or amount of a
price or price reduction;
(11) conducting a deceptive sales contest; or
(12) making a materially false or misleading
statement:
(A) in an advertisement for the purchase or sale
of property or service; or
(B) otherwise in connection with the purchase or
sale of property or service.
(c) An offense under Subsections (b)(1), (b)(2), (b)(3),
(b)(4), (b)(5), and (b)(6) is:
(1) a Class C misdemeanor if the actor commits an
offense with criminal negligence and if he has not previously been
convicted of a deceptive business practice; or
(2) a Class A misdemeanor if the actor commits an
offense intentionally, knowingly, recklessly or if he has been
previously convicted of a Class B or C misdemeanor under this
section.
(d) An offense under Subsections (b)(7), (b)(8), (b)(9),
(b)(10), (b)(11), and (b)(12) is a Class A misdemeanor. |
