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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
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.
