What is Failure to Disclose

A seller or service provider commits a “failure to disclose” when it withholds material facts a reasonable buyer would want—or must have—to make an informed decision. The omission can be deliberate or careless; either way, Texas and federal law treat it as deceptive because it tilts the bargaining table unfairly.

Typical lapses

• Hidden charges – mandatory “processing” or “resort” fees revealed only after the buyer is committed.
• Undisclosed defects – a known safety flaw in a consumer product or a cracked foundation in a house.
• Buried terms – late-payment penalties or automatic renewals tucked deep in fine print.
• Health and safety risks – side-effects, allergens, or recall notices that never reach the customer.
• Credit costs – balloon payments, variable interest triggers, or prepayment penalties omitted from loan paperwork.

The legal backdrop

• Federal Trade Commission Act – bars deceptive omissions in any interstate sale.
• Truth in Lending Act – mandates full disclosure of finance charges and key loan terms.
• Consumer Product Safety Act – obliges makers to warn about hazards and to report defects.
• Texas Deceptive Trade Practices Act (DTPA) – lets buyers recover economic damages, court costs, and—when the silence is knowing—up to triple damages.
• Texas real-estate disclosure statutes – force residential sellers to reveal known structural, mechanical, and environmental problems.

Regulators can fine offenders, force clear warnings, and order restitution. Private litigants may sue for rescission, actual damages, attorney’s fees, and sometimes exemplary damages.

Smart moves for consumers

1. Press for details – If the price, risk, or warranty is vague, demand written clarification before paying.
2. Read every line – Skim at your peril; hidden clauses lurk in small type and hyperlink pop-ups.
3. Research independently – Reviews, recall databases, and public records often expose what a seller omits.
4. Document the deal – Save ads, emails, invoices, and chat logs; they are your evidence if disclosure falls short.
5. Sound the alarm – Report shady omissions to the Texas Attorney General or the FTC; your complaint can trigger an investigation and preserve your claim.

Straight-dealing rules for businesses

• Tell the whole story up front – costs, limitations, risks, and material facts must be conspicuous and plain.
• Highlight add-ons – taxes, fees, and renewal terms belong on the first page or initial web screen, not in the last click.
• Train the team – sales and customer-service staff should know that half-truths under the DTPA equal liability.
• Audit marketing collateral – review ads, contracts, and online funnels periodically to catch silent gaps.
• Own mistakes quickly – if an omission surfaces, notify customers, offer remedies, and document corrective steps; contrition beats litigation.

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Information is the currency of fair commerce. When a seller pockets the truth—whether about cost, risk, or performance—the deal becomes suspect and the law is poised to intervene. Transparent disclosure is not merely best practice; it is the safest guard against fines, lawsuits, and reputational ruin. When in doubt—whether you are buying a product or structuring a promotion—consult our firm and let clarity be your competitive edge.