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Bill

Bill

SB 2957

Relating to prohibiting the use of unfair service agreements; creating an offense.

89th Legislature (2025) Introduced by Tan Parker

Texas bill criminalizing unfair service agreements to protect consumers from predatory contract terms while potentially increasing business compliance costs.

Referred to Business & Commerce
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WeVote Research Nonpartisan
Bill Summary · SB 2957

Legislative bill overview

SB 2957 proposes to prohibit unfair service agreements in Texas and creates criminal penalties for violations. The bill establishes legal standards for what constitutes an "unfair" service agreement and makes it an offense to enter into or enforce such agreements with consumers.

Why is this important

Service agreements affect millions of Texans across industries like telecommunications, utilities, fitness memberships, and subscription services. This legislation could reshape contractual relationships by giving consumers legal recourse against predatory terms, though it may also increase compliance costs for businesses and litigation.

Potential points of contention

  • Definition ambiguity: The bill's success depends heavily on how "unfair service agreements" is legally defined—vague language could create uncertainty for both consumers and businesses
  • Enforcement and penalties: The criminal offense designation raises questions about appropriate penalty levels and whether this should be civil rather than criminal liability
  • Business impact: Companies may face significant compliance costs to audit existing agreements, and small businesses could be disproportionately affected compared to larger competitors with legal resources

Compiled from official sources — confirm details with the bill’s official record.

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