Texas AG Authority to Issue Civil Investigative Demands Affirmed

TX Attorney General News Releases

Filed May 24th, 2024

Detected March 16th, 2026

Summary

The Texas Supreme Court ruled in favor of Attorney General Ken Paxton, reaffirming the Office of the Attorney General's authority to issue civil investigative demands (CIDs) under the Deceptive Trade Practices Act. This decision allows the AG's office to obtain relevant documents for investigations into potential violations of Texas law, specifically in cases involving deceptive billing practices related to gender transition procedures for minors.

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What changed

The Texas Supreme Court has issued a significant ruling in Office of the Attorney General v. PFLAG, Inc., reversing a lower court's decision and affirming the Texas Attorney General's broad authority to issue Civil Investigative Demands (CIDs) under the Deceptive Trade Practices Act (DTPA). This ruling empowers the OAG to compel the production of documents relevant to investigations into potential DTPA violations, particularly in the context of alleged deceptive billing practices concerning gender transition procedures for minors. The case has been remanded for further proceedings consistent with the Supreme Court's opinion.

This decision has immediate implications for healthcare providers and organizations operating in Texas, as it clarifies and strengthens the AG's investigative powers. Regulated entities should be aware that the OAG can now more readily seek information related to potential deceptive trade practices. While the ruling itself does not impose new direct obligations, it underscores the importance of maintaining accurate records and ensuring compliance with Texas consumer protection laws, as non-compliance can lead to further investigation and potential enforcement actions. The specific outcome of the remanded proceedings remains to be seen.

What to do next

Review internal policies and procedures related to compliance with the Texas Deceptive Trade Practices Act.
Ensure all documentation and billing practices related to services potentially covered by the DTPA are accurate and transparent.
Consult legal counsel regarding the implications of the Texas Supreme Court's ruling on investigative authority.

Source document (simplified)

Attorney General Ken Paxton secured a ruling from the Supreme Court of Texas that reaffirms the Attorney General’s authority to issue civil investigative demands (“CIDs”) under the Deceptive Trade Practices Act to obtain documents relevant to investigations into potential violations of Texas law.

The ruling came in Office of the Attorney General v. PFLAG, Inc., a case arising from the Attorney General’s investigation into whether medical providers may have used deceptive billing practices to conceal violations of Texas’s law that prohibits gender “transition” procedures for minors.

The Texas Supreme Court reversed the district court’s order that blocked enforcement of the CIDs and held that the OAG may obtain relevant documents through a CID when it reasonably believes a person or organization may possess information related to possible violations of the Deceptive Trade Practices Act. The case has been remanded for further proceedings consistent with the opinion.

“This is a major victory for the rule of law. The Supreme Court of Texas has affirmed that my office has the authority to investigate individuals who are engaging in deceptive trade practices,” said Attorney General Paxton. “No one engaging in such unlawful activity will be shielded from my office’s authority to use every legal tool available to uncover the truth and hold them accountable.”

The Court’s decision reinforces that the Attorney General has broad statutory authority to investigate potential deceptive trade practices and that courts should not second-guess reasonable investigative decisions made by the state’s chief law enforcement officer.

To read the opinion, click here.