Deceptive Business Practices: Texas Penal Code §32.42

The Texas Deceptive Business Practices law gives police the right to arrest you if they believe you engaged in certain fraudulent business practices, such as selling false weights for measurements, selling mislabeled or adulterated commodities, claiming that something is new when it’s in fact used, or conducting a deceptive sales contest.

Other deceptive business practice prohibited under the law are representing the price of property or service falsely or in a way tending to mislead, selling less than the represented quantity of a property or service and advertising property or service with the intent not to sell it as advertised.

The Texas legislature codified this criminal offense in Texas Penal Code Section 32.42. The legislature did not update this law in 2023. In fact, this law has not been amended since 1993.

The Penal Code classifies the Texas Deceptive Business Practices law under Title 7 “Offenses Against Property,” Chapter 32 “Fraud.” Learn more about the Texas offense of Deceptive Business Practices below.

What is the current Texas law about Deceptive Business Practices?

Texas law currently defines the offense of Deceptive Business Practices in Penal Code Section §32.42 as follows:^[1]

(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.

How can I be charged with a Deceptive Business Practices offense in Texas?

You can be charged with Deceptive Business Practices in Texas if the state’s attorneys believe that each of the elements of 32.42 as described in the section above have been met.

What is the statute of limitation for Deceptive Business Practices in Texas?

As a misdemeanor, Deceptive Business Practices charges have a two-year limitations period.^[2]

What is the penalty for a Texas Deceptive Business Practices offense?

A conviction for Deceptive Business Practices under Subsections (b)(1), (b)(2), (b)(3), (b)(4), (b)(5), and (b)(6) is punished as a Class C misdemeanor if the state’s attorneys prove that you committed the offense with criminal negligence and if you have not previously been convicted of a deceptive business practice,^[3] or a Class A misdemeanor if the state’s attorneys prove that you committed the offense intentionally, knowingly, recklessly or if you have been previously convicted of a Class B or C misdemeanor under the Deceptive Business Practices law.^[4] An offense under Subsections (b)(7), (b)(8), (b)(9), (b)(10), (b)(11), and (b)(12) is a Class A misdemeanor.^[5]

Can you get probation for Deceptive Business Practices in Texas?

The Texas Code of Criminal Procedure allows both judges and juries to grant probation for Deceptive Business Practices, and judges are also allowed to accept deferred adjudication plea deals.^[6]

Note, however, that judges may not grant community supervision after a conviction if (1) the defendant used or exhibited a deadly weapon during the commission of the felony or immediate flight thereafter and (2) the defendant used or exhibited the deadly weapon himself or was a party to the offense and knew that a deadly weapon would be used or exhibited.^[7]

What level of crime is Deceptive Business Practices in Texas?

The Penal Code classifies the punishment for Deceptive Business Practices as either a Class A, B, or C misdemeanor, depending on the circumstances.

Learn more about the penalty range for this offense in the section above.

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Legal References:

^1. Texas Penal Code §32.42. This law is current as of 2024.^2. See Code of Criminal Procedure 12.02(a)^3. Texas Penal Code §32.42(c)(1)^4. Texas Penal Code §32.42(c)(2)^5. Texas Penal Code §32.42(d)^6. See Chapter 42, Texas Code of Criminal Procedure, Art. 42A.054, Art. 42A.056, Art. 42A.102^7. Art. 42A.054(b), Texas Code of Criminal Procedure