The Texas Deceptive Trade Practices Act (DTPA) is Texas's leading consumer protection legislation. It protects consumers by making it unlawful to misrepresent a product that is sold in the state. Richard Alderman, a Texas attorney who helped draft the DTPA, discusses one's options when a seller has lied about major defects and he also discusses one's options when a seller claims he did not know about a defect. He states the following:
Under the Texas Deceptive Trade Practices Act, it is unlawful for a seller to fail to disclose known defects, in order to induce you to make a purchase. In other words, if a seller knows of a major defect he must disclose it. I should point out that this law applies to all sellers, including individuals not in business. Under this law, a seller who knowingly fails to disclose facts, or takes steps to conceal them, may be liable for up to three times your damages plus court costs and attorneys' fees. To use the Deceptive Trade Practices Act you must first give the seller written notice of your complaint and the amount of your damages.
For more information about the Texas Deceptive Trade Practices Act, we recommend this video by Richard Alderman from a People's Law School session that explains the DTPA and how it can be used to assert your rights.