Better Business Bureau of Metropolitan Dallas, Inc. v. BH DFW, Inc.

402 S.W.3d 299, 2013 WL 2077636, 2013 Tex. App. LEXIS 6057
CourtCourt of Appeals of Texas
DecidedMay 15, 2013
Docket05-12-00587-CV
StatusPublished
Cited by56 cases

This text of 402 S.W.3d 299 (Better Business Bureau of Metropolitan Dallas, Inc. v. BH DFW, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Better Business Bureau of Metropolitan Dallas, Inc. v. BH DFW, Inc., 402 S.W.3d 299, 2013 WL 2077636, 2013 Tex. App. LEXIS 6057 (Tex. Ct. App. 2013).

Opinion

OPINION

Opinion by

Justice FILLMORE.

This accelerated interlocutory appeal arises from a breach of contract action brought by BH DFW, Inc. against the Better Business Bureau of Metropolitan Dallas, Inc. (the BBB). The BBB moved to dismiss the action pursuant to the Texas Citizens Participation Act (TCPA) which *302 provides a means for dismissal of actions involving the exercise of certain constitutional rights. See Tex. Crv. Prao. & Rem. Code Ann. §§ 27.001-011 (West Supp. 2012). In a written order, the trial court denied the motion to dismiss.

In one issue, the BBB argues the trial court erred by denying the BBB’s motion to dismiss. In its brief, BH DFW also challenges this Court’s jurisdiction over this appeal. We conclude we have jurisdiction over this appeal and that the trial court erred by denying the BBB’s motion to dismiss. We reverse the trial court’s order, render judgment granting the BBB’s motion to dismiss pursuant to the TCPA, and remand this case to the trial court for further proceedings consistent with section 27.009(a) of the civil practice and remedies code.

Background

The BBB, a nonprofit corporation founded in 1920, states that its goal and primary mission is to promote ethical business practices through voluntary self-regulation by businesses. The BBB provides several services to the public, including publication of consumer alerts, publication of business reviews that may contain a rating of the business on a scale from “A+” to “F,” and complaint processing.

A business may also become “accredited” by the BBB if the business meets and maintains the standards developed by the Council of Better Business Bureaus (CBBB). An accredited business pays a fee to the BBB for accreditation review and monitoring and support of BBB services to the public. According to Christopher Burgess, the vice president and chief compliance officer of the BBB, the fee paid by a business does not entitle it to be accredited and a business may not buy accreditation.

The accreditation standards include eight principles, one of which is to “advertise honestly,” with “adherence to established standards of advertising” as set out in the CBBB’s Code of Advertising. The Code of Advertising, according to Burgess, is designed to promote truth, honesty, and accuracy in business selling practices, inform- the public on matters of advertising and selling practices, and enhance customer trust and confidence in business. Further, the Code of Advertising indicates it is intended to provide guidance for advertisers to help ensure effective self-regulation in the public interest. According to Burgess, although the BBB applies the Code of Advertising to both accredited and non-accredited businesses, compliance with the Code of Advertising is one requisite for acquiring and maintaining accreditation. Further, the BBB publishes business reviews to the public on both accredited and non-accredited businesses.

As relevant to this appeal, the CBBB’s Code of Advertising provides that the advertiser bears primary responsibility to ensure its advertisements are truthful and non-deceptive. The Code of Advertising specifically addresses the subject of “Superlative Claims — Puffery,” distinguishing objective, or factual, claims from subjective, or puffery, claims. It defines objective claims as those relating to “tangible qualities and performance values of a product or service which can be measured against accepted standards or tests.” Because objective claims are statements of fact, “such claims can be proved or disproved and the advertiser should possess substantiation.” Subjective claims, on the other hand, are “expressions of opinion or personal evaluation of the intangible qualities of a product or service.” If such statements express individual opinions, statements of corporate pride, and promises, the statements may “sometimes be considered puffery and not subject to test *303 of their truth and accuracy.” However, according to the Code of Advertising, “[s]ubjective superlatives which tend to mislead should be avoided.”

According to Burgess, compliance with the CBBB’s Code of Advertising and other BBB accreditation standards is voluntary. However, the BBB conducts advertising reviews by monitoring local advertising for compliance with the Code of Advertising. When the BBB challenges an advertisement, it asks the advertiser to substantiate, modify, or discontinue the challenged advertising claims. If the advertiser does not comply with one of these requests, the BBB includes that information in its published review of that business. When an accredited business fails to substantiate, modify, or discontinue a challenged advertising claim, its accreditation can be suspended and revoked.

BH DFW builds residential swimming pools in the Dallas/Fort Worth area and is part of the Blue Haven Pool & Spa franchise group (Blue Haven). Between 1981 and December 13, 2010, BH DFW was designated an accredited business by the BBB. As an accredited business, BH DFW paid an annual fee of $1,000 to the BBB. It is undisputed that, for a number of years, BH DFW received an “A+” business rating from the BBB.

In the summer of 2010, BH DFW advertised its business in the Dallas Morning News. On July 19, 2010, Phylissa Landix, a business standards analyst for the BBB, sent a letter to BH DFW challenging several of the statements made in the advertisement. Landix requested BH DFW substantiate the challenged statements. If BH DFW could not do so, Landix requested that the claims be modified or discontinued. At issue in this appeal is the BBB’s challenge to the statement .that BH DFW is the ‘World’s Largest!”

BH DFW responded by providing data from an industry trade journal, Pool & Spa News, indicating that Blue Haven had been the largest builder of residential swimming pools in the United States for a number of years and was one of only two companies that operated nationwide. BH DFW also asserted the scale.of swimming pool construction in the United States is much larger than in any other country. BH DFW pointed out various factors, including climate, disposable income, access to financing, and availability of detached family homes on adequate-size plots of land, that limited a “swimming pool culture” from flourishing in other countries. BH DFW argued that a “world-wide comparison is not needed to show that there are no international builders of the scale of Blue Haven.”

Landix disagreed that such a comparison was unnecessary. According to Lan-dix, the term “World’s Largest!” is an objective claim that can be measured against accepted standards or tests. She requested that BH DFW “provide a list of five countries known to have a significant pool-building presence and identify what you believe to be the largest pool company within each of the five countries, citing the source. Then identify how Blue Haven is larger.”

BH DFW responded that Blue Haven had used World’s Largest!” as a logo for many years. It asserted the confirmation the BBB was demanding to support the logo “does not exist (trying to prove a negative).” It pointed out that no one had disputed Blue Haven’s claim that it was the “World’s Largest!” and there was no evidence to the contrary. It asserted it had “no way of confirming the pool building activities and business structure of all the nations of the world.”

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Cite This Page — Counsel Stack

Bluebook (online)
402 S.W.3d 299, 2013 WL 2077636, 2013 Tex. App. LEXIS 6057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/better-business-bureau-of-metropolitan-dallas-inc-v-bh-dfw-inc-texapp-2013.