3 White Collar Laws Specific to Texas Companies

If you are thinking of doing business in the Lone Star State, that’s fantastic! Texas is a hub for innovation and entrepreneurship. But with great opportunity comes great responsibility. It is critical for you to understand the specific laws that govern business conduct in Texas, especially when it comes to white collar crime. These laws protect consumers, investors, and the integrity of the marketplace. If it helps you to understand this better, you can think of them as the rules of the road that everyone needs to follow to ensure a safe and fair environment. So, before you set up shop, here are three laws specific to Texas that you must understand.

1. Texas Theft Liability Act

This law deals with offenses related to theft, fraud, and misappropriation of property. It covers a wide range of activities, from shoplifting to embezzlement. For example, if an employee steals money from their employer, they can be prosecuted under the Texas Theft Liability Act. The penalties vary depending on the value of the stolen property, but they can include fines, restitution, and even jail time.

Penalties range from a Class C misdemeanor for items worth less than $100 that is punishable by a fine of up to $500 to a first-degree felony for items worth $300,000 or more, with a prison sentence of 5 to 99 years and a fine of up to $10,000. For instance, stealing a pack of gum could result in a Class C misdemeanor, while stealing a bicycle worth $800 could lead to a Class B misdemeanor with a possible 180-day jail sentence and a $2,000 fine. Furthermore, embezzling $1,500 from your employer could be a state jail felony, and fraudulently obtaining a valuable painting worth $50,000 could result in a second-degree felony charge. The Texas Theft Liability Act ensures that the punishment fits the crime, which safeguards individuals and businesses from property theft.

2. Texas Securities Act

This law regulates the offer and sale of securities in Texas. It is designed to protect investors from fraud and make certain that they have access to accurate information about the securities they are buying. For example, if a company makes false or misleading statements about its financial performance to attract investors, it can be held liable under the Texas Securities Act. This law functions as a referee in a sports game. It ensures that everyone plays by the rules and that the game is fair.

3. Texas Deceptive Trade Practices Act (DTPA)

This law protects consumers from unfair and deceptive business practices. It covers a wide range of activities, from false advertising to bait-and-switch tactics. To illustrate, if a car dealership advertises a vehicle at a low price but then tries to sell the customer a more expensive model, it can be sued under the DTPA. This law is like a consumer watchdog because it protects consumers from businesses that try to take advantage of them.

Understanding these laws is vital for any business operating in Texas. They provide a framework for ethical conduct and help create a level playing field for all businesses. By complying with these laws, you protect your company from legal trouble and demonstrate your commitment to fair business practices. Think of it like building a house – you need a strong foundation to ensure that the structure is stable and secure.