Alabama

• Pages: 17-23

17

CHAPTER 2

ALABAMA

A. Scope of the Statutes and Elements of a Cause of Action

The Alabama Deceptive Trade Practices Act (DTPA)1 prohibits

“deceptive acts or practices in the conduct of any trade or commerce . . . to

protect the interest of both the consuming public and the legitimate

businessperson.”2 The DTPA identifies a comprehensive list of acts or

practices related to consumer goods or services that are deemed to be

deceptive—including passing off goods as those of another, causing

confusion or misunderstanding as to the source, affiliation, characteristics,

or condition of goods, and involvement in “pyramid schemes”—and

includes a catchall to cover “any other unconscionable, false, misleading,

or deceptive act or practice in the conduct of trade or business.”3

The DTPA protects “consumers,” defined as “[a]ny natural person

who buys goods or services for personal, family or household use.”4

Alabama courts are to construe provisions of the DTPA consistently with

the interpretations of the FTC and federal courts relating to the FTC Act.5

Alabama has also enacted extensive regulations dealing with the

conduct of telemarketers to “promote the general welfare and the integrity

of the telemarketing industry.”6 The Alabama Telemarketing Act (ATA)7

requires all telephone solicitors doing business in Alabama to obtain a

license and disclose their identity and license number as well as the

company they represent at the outset of the call. The ATA also requires,

among other things, that the caller make certain disclosures if the caller

tells the consumer that the consumer qualifies for any gift8 or has been

entered into or won any sweepstakes.9 The Alabama Code supplements

1. ALA. CODE §§ 8-19-1 to 8-19-15.

2. Id. §§ 8-19-5, -2.

3. Id. § 8-19-5(19), -5(27).

4. Id. § 8-1 9-3(2 ). Whi le “goo ds” an d “ser vices” subje ct to t he act a re defined

broadly, courts have excluded mortgage loans. Deerman v. Fed. Home

Loan Mortgage Corp., 955 F. Supp. 1393, 1399 (N.D. Ala. 1997); see ALA.

CODE § 8-19-3(3), (7) (defining “goods” and “services”).

5. ALA. CODE §8-19-6.

6. Id. § 8-19A-2.

7. Id. §§ 8-19A-1 to 8-19A-24.

8. Id. § 8-19A-13.

9. Id. § 8-19D-2.