(35) 1 failure to disclose information regarding use of artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means the use of machine learning and related technologies that use data to train statistical models for the purpose of enabling computer systems to perform tasks normally associated with human intelligence or perception, such as computer vision, speech or natural language processing, and content generation.Tex. Bus. & Com. Code § 17.45(18), or algorithmic pricing systemsAlgorithmic pricing systems"Algorithmic pricing systems" means any condition in which an artificial intelligence system when deployed generates recommendations on pricing.Tex. Bus. & Com. Code § 17.45(19) for setting of price.

(1)–(34) Except as provided in Subsection (d) of this section, the term "false, misleading, or deceptive acts or practices" includes, but is not limited to, the following acts: (1) passing off goods or services as those of another; (2) causing confusion or misunderstanding as to the source, sponsorship, approval, or certification of goods or services; (3) causing confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another; (4) using deceptive representations or designations of geographic origin in connection with goods or services; (5) representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which the person does not; (6) representing that goods are original or new if they are deteriorated, reconditioned, reclaimed, used, or secondhand; (7) representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another; (8) disparaging the goods, services, or business of another by false or misleading representation of facts; (9) advertising goods or services with intent not to sell them as advertised; (10) advertising goods or services with intent not to supply a reasonable expectable public demand, unless the advertisements disclosed a limitation of quantity; (11) making false or misleading statements of fact concerning the reasons for, existence of, or amount of price reductions; (12) representing that an agreement confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law; (13) knowingly making false or misleading statements of fact concerning the need for parts, replacement, or repair service; (14) misrepresenting the authority of a salesman, representative or agent to negotiate the final terms of a consumer transaction; (15) basing a charge for the repair of any item in whole or in part on a guaranty or warranty instead of on the value of the actual repairs made or work to be performed on the item without stating separately the charges for the work and the charge for the warranty or guaranty, if any; (16) disconnecting, turning back, or resetting the odometer of any motor vehicle so as to reduce the number of miles indicated on the odometer gauge; (17) advertising of any sale by fraudulently representing that a person is going out of business; (18) advertising, selling, or distributing a card which purports to be a prescription drug identification card issued under Section 4151.152, Insurance Code, in accordance with rules adopted by the commissioner of insurance, which offers a discount on the purchase of health care goods or services from a third party provider, and which is not evidence of insurance coverage, unless: (A) the discount is authorized under an agreement between the seller of the card and the provider of those goods and services or the discount or card is offered to members of the seller; (B) the seller does not represent that the card provides insurance coverage of any kind; and (C) the discount is not false, misleading, or deceptive; (19) using or employing a chain referral sales plan in connection with the sale or offer to sell of goods, merchandise, or anything of value; (20) representing that a guaranty or warranty confers or involves rights or remedies which it does not have or involve; (21) promoting a pyramid promotional scheme, as defined by Section 17.461; (22) representing that work or services have been performed on, or parts replaced in, goods when the work or services were not performed or the parts replaced; (23) filing suit founded upon a written contractual obligation of and signed by the defendant to pay money arising out of or based on a consumer transaction for goods, services, loans, or extensions of credit intended primarily for personal, family, household, or agricultural use in any county other than in the county in which the defendant resides at the time of the commencement of the action or in the county in which the defendant in fact signed the contract; (24) failing to disclose information concerning goods or services which was known at the time of the transaction if such failure to disclose such information was intended to induce the consumer into a transaction into which the consumer would not have entered had the information been disclosed; (25) using the term "corporation," "incorporated," or an abbreviation of either of those terms in the name of a business entity that is not incorporated under the laws of this state or another jurisdiction; (26) selling, offering to sell, or illegally promoting an annuity contract; (27) subject to Section 17.4625, taking advantage of a disaster declared by the governor or the president by selling or leasing necessities at exorbitant prices or demanding exorbitant prices; (28) using the translation into a foreign language of a title or other word to imply that a person is authorized to practice law; (29) delivering or distributing a solicitation that represents it is sent on behalf of a governmental entity when it is not or resembles a governmental notice; (30) delivering or distributing a solicitation that resembles a check or other negotiable instrument or invoice unless it includes the notice "SPECIMEN-NON-NEGOTIABLE"; (31) in the production, sale, distribution, or promotion of a synthetic substance, making a deceptive representation or causing confusion about its effects; (32) a licensed public insurance adjuster soliciting employment for an attorney; (33) owning, operating, maintaining, or advertising an unlicensed massage establishment; (34) a warrantor of a vehicle protection product warranty using insurance-descriptive terms.

The change in law made by this Act applies only to an act or practice that occurs on or after the effective date of this Act. An act or practice that occurs before the effective date of this Act is governed by the law in effect on the date the act or practice occurred, and the former law is continued in effect for that purpose.

This Act takes effect September 1, 2025.