What is a “cease and desist” letter?

A cease and desist letter is a legal document sent to someone that requires them to immediately stop an activity that may be illegal or that infringes on another person’s rights. The letter will usually also include a warning that legal action may be taken if the activity does not stop. In the state of Texas, consumer fraud laws prohibit businesses from engaging in unfair or deceptive behavior that is likely to cause financial loss to their customers. Examples of such behavior include false advertising, bait-and-switch tactics, and pyramid schemes. If a business is suspected of engaging in consumer fraud, the Texas Attorney General’s Office may take action by sending a cease and desist letter to the business, which instructs the business to stop engaging in the fraudulent behavior. The letter will often include a list of the activities that must stop, the legal penalties associated with continued fraudulent activity, and a deadline for ceasing such activity. The recipient of a cease and desist letter should take the warning seriously. If the business continues to engage in the prohibited behavior after receiving the letter, the business could face legal action, including the possibility of having to pay fines or damages to the victims of the fraud.

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What is a “cease and desist” letter?

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