§ 150C.002.Falsely Implying Governmental Affiliation
Title 6. Miscellaneous Provisions · Chapter 150C. Entity Name Falsely Implying Governmental Affiliation · Last amended 2021 · Last verified August 29, 2026
Full Text of § 150C.002
Plain-English Summary
A narrow injunctive remedy with an unusually broad geographic reach.
Subsection (a): a governmental unit is entitled to enjoin another person’s use of an entity name that falsely implies governmental affiliation with it.
"Entitled to" is stronger than the ordinary injunction standard. A party seeking an injunction normally proves irreparable injury and an inadequate remedy at law; the section gives the entitlement on proof of the false implication.
"Falsely implies" is the element, and it is broader than a false statement. A name need not claim affiliation outright — it is enough that it implies one, which reaches names borrowing an agency’s initials, its distinctive words, or its style.
Subsection (b) gives the relief statewide. The governmental unit is entitled to injunctive relief throughout the state, whatever the unit’s own territory — so a municipal utility district can restrain use of a deceptive name across Texas, not merely within its boundaries.
That is a deliberate choice. A name implying government affiliation deceives people wherever they encounter it, and confining the remedy to the unit’s territory would leave most of the harm unaddressed.
Subsection (c) adds fees, on a condition and in the court’s discretion. If the court finds the person wilfully intended to imply governmental affiliation, it may award reasonable attorney’s fees and court costs.
So the remedy is graduated. An innocent name is enjoined and nothing more; a deliberate one exposes its user to the cost of the suit.
The chapter supplies no damages remedy at all — the relief is the injunction, with fees as the only monetary consequence.
Frequently Asked Questions
Can a Texas city stop a business using a name that sounds official?
Yes. A governmental unit is entitled to enjoin use of an entity name that falsely implies governmental affiliation with it.
How far does the injunction reach?
Throughout the state, regardless of the governmental unit’s own territory.
Are damages available?
No. The chapter provides injunctive relief, with attorney’s fees and costs available only for a wilful violation and only in the court’s discretion.
Does the name have to claim affiliation outright?
No. It is enough that the name falsely implies it.
Amendment History
- Added by Acts 2021, 87th Leg., R.S., Ch. 658 (H.B. 1493), Sec. 1, eff. September 1, 2021.