SECTION 21.4. Misrepresentation Defined; Standards for Determining Misrepresentation

The term misrepresentation, or the prohibited conduct, act, or practice that constitutes misrepresentation by a person subject to the provisions of these sections, is defined as any one of the following acts or omissions:

(1) any untrue statement of a material fact;

(2) any omission to state a material fact necessary to make the statements made (considered in the light of the circumstances under which they are made) not misleading;

(3) the making of any statement in such manner or order as to mislead a reasonably prudent person to a false conclusion of a material fact;

(4) any material misstatement of law; or

(5) any failure to disclose any matter required by law to be disclosed, including failure to make disclosures in accordance with the provisions of these sections and other applicable rules.

Source Note: The provisions of this §21.4 adopted to be effective January 1, 1976; amended to be effective July 22, 1982, 7 TexReg 2589; amended to be effective November 7, 2021, 46 TexReg 7408