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The Texas Supreme Court Levels Consumer Playing Field

Twenty-nine years ago, Texas adopted the theory of strict products liability. Six years later, the Texas legislature adopted the Texas Deceptive Trade Practices - Consumer Protection Act, §l;§l;17.41-17.63 of the Texas Business and Commerce Code (the "DTPA"). Both have since become powerful tools for consumers, embellished with favorable interpretive case law. The Texas Supreme Court has recently retreated from earlier, liberal treatment of consumers, however, with two decisions which help to level the playing field for businesses, and their insurers. The court has determined that no warning of risks which are obvious to most people need be given and that Texas law will not require a manufacturer to destroy the utility of his product in order to make it safe. The court also clarified the DTPA by deciding that a mere breach of contract is not actionable under the DTPA, reasoning that allegedly deceptive statements made in contract negotiations were nothing more than representations of performance under the contract.

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