Texas Bar Journal • December 2024
Consumer Law
Written by Newton Tamayo And Jon-Ross Trevino
2024 was a busy year in consumer law. This review will briefly discuss significant changes in this area of the law that attorneys and consumers should monitor.
Federal Laws
On May 16, the U.S. Supreme Court held in a 7-2 decision that the
Consumer Financial Protection Bureau’s funding mechanism did not
violate the appropriation clause of the Constitution.1 The
court held that since the funding comes from a source of funds that will
ultimately be destined for the treasury’s general fund, the
bureau’s funding source satisfied the Constitution.2
The court added “that appropriations need only identify a source
of public funds and authorize the expenditure of those funds for
designated purposes to satisfy the Appropriations
Clause.”3 The U.S. Supreme Court in Devillier v.
Texas granted a private cause of action in the context of the
takings clause and held that the appellant in that case could pursue a
claim under the takings clause and state law after the state-built
barrier caused repeated flooding of the appellant’s
lands.4
New Federal Regulations
The Biden administration continued its push to combat junk fees with
a new final rule targeting hidden airline fees and deceptive
advertising.5 The rule requires airlines and ticket agents to
tell consumers upfront what fees they charge for a first or second
checked bag, a carry-on bag, and canceling or changing a
reservation.6 Additionally, the fare price cannot increase
after purchase; ancillary fees must be disclosed conspicuously, and
web-based discounts must be equally
available to consumers who do not purchase a ticket through the
airline’s website.7
On March 15, the administration proposed a new final rule that was
set to be effective on May 14, 2024, that prohibits credit card fees in
excess of $8.8 The rule is being litigated in the U.S.
District Court for the Northern District of Texas, where the court has
granted the plaintiff a primary injunction still in effect.9
New State Law
On January 1, the section of Senate Bill 2476 (88R) relating to
ground ambulances became effective.10 As it is a state law,
the law only applies to state insurance plans governed by the Texas
Department of Insurance. The law requires the consumer’s
insurance to pay the entire ground ambulance bill regardless of whether
the ground ambulance is in the insurance network or the consumer’s
deductible or coinsurance has already been met for the
year.11
Update on the Rules of Civil Procedure
The Supreme Court of Texas approved new amendments to the Texas Rules
of Civil Procedure.12 Of note is Rule 306a, which states that
if the judgment awards monetary damages, the actual judgment, not the
notice of judgment, must include language informing judgment debtors
they might have property protections in post-judgment proceedings and
directing them to resources available, such as texaslawhelp.com, and
legal aid organizations in Texas.13
NEWTON
TAMAYO is a staff attorney at Lone Star Legal
Aid. He has been with the service provider since 2018 and focuses on
consumer law issues in the greater Houston area.
JON-ROSS TREVINO is the
supervising attorney of the Housing and Consumer Unit at Lone Star
Legal Aid in Houston. He passionately strives to provide equal access
to justice through a client- centric approach. Trevino has carried out
extensive litigation as a consumer advocate in state and federal court
in Houston and the surrounding area.
