Consumer Fraud and Misrepresentation

Fraud occurs on a daily basis and negatively affects thousands of people. You might have an idea of what fraud is, but not the several different sub-divisions of it. One that you’re most likely to encounter in your day-to-day life is consumer fraud.

Consumer fraud happens when someone gives false information out to another person that’s supposed to make them do or buy something. A lot of times this can be seen in advertisements where the product is nothing like it is described or can’t do something it says it’s able to do. It’s why you will often see notes at the bottom of commercials saying that results may vary or something similar. That’s so that companies can protect themselves from civil suits. In this type of case, you need to be able to prove that the given information was relied upon for the action that was taken.

There is a subtype of consumer fraud is called negligent misrepresentation. Negligent misrepresentation occurs when someone gives another person false information. They use that false information in some kind of business transaction. For example, if you hired a consultant that was supposed to help you buy a house and they intentionally gave you a higher down payment amount than the actual amount required.

When Funk & Associates handles consumer fraud cases, we almost always add a Texas Deceptive Trade Act claim. This increases their effectiveness dramatically. Find out more about Texas’s DTPA act here: Texas Statute 17.46.

Contact Funk & Associates today if you think you’ve been a victim of consumer fraud. Keep in mind that our Austin personal injury law firm only handles consumer fraud cases where the damages are greater than one hundred thousand dollars.


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