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CHAPTER 5
ARKANSAS
A. Scope of the Statute and Elements of a Cause of Action
The Arkansas Deceptive Trade Practices Act (ADTPA)1 was enacted
with a remedial purpose “to protect the interests of both the consumer
public and the legitimate business community.”2 The ADTPA generally
prohibits “(1) [t]he act, use or employment by a person of any deception,
fraud, or false pretense; or (2) [t]he concealment, suppression, or omission
of any material fact with intent that others rely upon the concealment,
suppression, or omission” when “utilized in connection with the sale or
advertisement of any goods, services, or charitable solicitation . . . .”3
“Goods” include “any tangible property, coupons, or certificates, whether
bought or leased.”4 “Services” include “work, labor, or other things
purchased that do not have physical characteristics.”5
In addition to these general prohibitions, the ADTPA also has a section
listing eleven “deceptive and unconscionable trade practices made
unlawful and prohibited by” the act.6 Prohibited conduct is “not limited
to” these specific prohibitions.7 Among other things, this list of prohibited
conduct includes “[k]nowingly making a false representation” as to
characteristics “of goods or services”;8 “[a]dvertising the goods or services
with the intent not to sell them as advertised”;9 using “bait-and-switch
1. ARK. CODE ANN. § 4-88-101 et seq.
2. State ex rel. Bryant v. R & A Inv. Co., 985 S.W.2d 299, 302 (Ark.
1999) (quoting the preamble to Arkansas Act 92 of 1971).
3. ARK. CODE ANN. § 4-88-108; see also New Equity Sec. Holders Comm.
for Golden Gulf v. Phillips, 97 B.R. 492, 502 (Bankr. E.D. Ark.
1989) (holding plaintiff partnership’s misrepresentations violated the
ADTPA and defendant partners could use the violation as an affirmative
defense).
4. ARK. CODE ANN. § 4-88-102(4).
5. Id. § 4-88-102(7).
6. Id. § 4-88-107(a).
7. Id.
8. Id. § 4-88-107(a)(l).
9. Id. § 4-88-107(a)(3).
