Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What does the DTPA aim to prevent in business transactions?

1. Fair pricing

2. Consumer fraud and deception

3. Competition between businesses

4. Marketing malpractice

The correct answer is: Consumer fraud and deception

The correct choice is designed to focus on the purpose of the Deceptive Trade Practices Act (DTPA), which is primarily aimed at protecting consumers from fraudulent and deceptive business practices. The DTPA empowers consumers by prohibiting misleading representations and false advertising, thereby promoting honesty and transparency in business transactions. This ensures that consumers can make informed decisions without falling victim to unethical practices. While fair pricing is a component of ethical business practices, it is not the primary focus of the DTPA. Competition between businesses is more about economic dynamics and does not directly relate to consumer protection. Marketing malpractice generally refers to unethical practices in advertising, but again, it is a broader concept and not as specifically addressed by the DTPA as consumer fraud and deception. The DTPA specifically targets deceitful actions that can harm consumers, making its principal aim the prevention of consumer fraud and deception in business transactions.