The conduct

A misrepresentation of authority arises when a person or firm claims power, licensure, or permission that it does not hold. The act can be as simple as a contractor flashing a fake license or as elaborate as a caller impersonating an IRS agent. However packaged, the goal is the same—persuade the consumer to part with money or information on the strength of a false credential.

Why it matters

• Consumers risk financial loss, identity theft, defective work, or unenforceable agreements.
• Businesses that allow or encourage false claims invite civil penalties, restitution orders, and—in egregious cases—criminal charges for fraud or impersonation.

Classic Texas examples

• A remodeler touts a non-existent state “general contractor” license (Texas licenses only certain specialty trades).
• Debt-collection callers threaten arrest while posing as sheriff’s deputies—barred by both the Fair Debt Collection Practices Act and the Texas Debt Collection Act.
• A sales agent pretends to be “from corporate headquarters” to upsell extended warranties.
• An individual drafts wills for a fee while holding no law license—unauthorized practice of law under the Texas Government Code.
• Phishing texts mimic a bank’s fraud department to capture log-in credentials.

Legal guardrails

Federal layer

• FTC Act—bans deceptive acts in commerce; civil penalties and injunctions follow when authority is faked in marketing or collections.
• FDCPA—forbids debt collectors from misrepresenting their status or the legal consequences of non-payment.
• Criminal statutes—impersonating a federal officer carries up to three years in prison.

Texas layer

• Deceptive Trade Practices-Consumer Protection Act (DTPA)—labels false claims of affiliation, certification, or authority as unlawful, with treble damages for knowing violations.
• Texas Debt Collection Act—mirrors and expands the FDCPA for intrastate collections.
• Penal Code §§ 37.11–12—criminalizes impersonating public servants or lawyers.
• Professional licensing statutes—state boards can fine and enjoin unlicensed practice in everything from plumbing to real estate.

Remedies on the table

• Agency action—FTC, CFPB, the Texas Attorney General, and state licensing boards can levy fines, seek injunctions, and order restitution.
• Private suits—consumers may recover economic damages, mental-anguish damages, attorney’s fees, and, under the DTPA, up to three-times actual damages if the deception was knowing or intentional.
• Class actions—efficient when a scheme targets hundreds of Texans with the same script.
• Criminal prosecution—particularly for impersonating peace officers, lawyers, or health-care professionals.

Smart moves for consumers

1. Verify first—check licenses on state agency websites, call the published number of any government office, and refuse on-the-spot payments.
2. Demand paperwork—real officials produce ID; real businesses provide invoices and written authorizations.
3. Slow the conversation—high-pressure timelines are the hallmark of fraud.
4. Document and report—save emails, record call details, and file complaints with the FTC and the Texas Attorney General.
5. Consult counsel—an attorney letter can end the scam and preserve evidence for recovery.

Sound practices for legitimate businesses

1. Truthful branding—state credentials precisely; do not embellish affiliate, distributor, or “authorized” status.
2. Written authority—issue clear, verifiable credentials to employees and contractors who interact with customers.
3. Compliance training—teach sales and collections staff where the legal lines lie; monitor calls and marketing copy.
4. Prompt correction—if a rogue agent overstates authority, retract it, make the customer whole, and document the fix.
5. Audit marketing partners—vendors acting in your name can trigger the same liability.

Connect With Us

Credibility is currency. In Texas and across the nation, overstating one’s authority is more than a sales foul—it is a statutory violation that can empty pocketbooks and shutter enterprises. With vigilant verification by consumers and unwavering honesty by businesses, the marketplace stays trustworthy and compliant. If a dispute does surface, our firm can chart the quickest route to restitution or defense.

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