§ 98C.005.Damages
Title 4. Liability in Tort · Chapter 98C. Liability for Online Impersonation · Last amended 2025 · Last verified August 29, 2026
Full Text of § 98C.005
Plain-English Summary
The most distinctive damages provision in this group of chapters.
A prevailing claimant shall be awarded actual damages, including expenditures made by the claimant related to counseling, identity theft, or libel. The defendant's profits attributable to the impersonation may be considered in computing actual damages.
The three named expenditures describe the actual consequences of a convincing impersonation: psychological treatment, the cost of repairing a stolen identity, and the cost of correcting reputational damage.
The profits clause is unusual. A claimant may bring the defendant's gain into the damages calculation, which is restitutionary reasoning inside a compensatory award. It matters where an impersonation was commercially motivated — a fake endorsement account, for instance — and the claimant's own loss is hard to quantify.
Subsection (b) sets a floor on exemplary damages: a prevailing claimant may recover exemplary damages of not less than $500.
A minimum exemplary award is rare. It guarantees something beyond compensation once exemplary damages are awarded at all, which matters where actual damages are minimal.
Subsection (c) is the other distinctive feature: the court shall award costs and reasonable attorney's fees to the prevailing party — either party.
The trafficking, compelled prostitution, and intimate visual material chapters award fees to a prevailing claimant. This one is two-way, so a defendant who defeats the claim recovers its fees. Read with the satire exception, that is a meaningful deterrent to using the chapter against protected expression.
Frequently Asked Questions
What damages are available for online impersonation in Texas?
Actual damages including expenditures on counseling, identity theft, and libel, with the defendant's attributable profits considered in the computation, plus exemplary damages of not less than $500.
Who gets attorney fees?
The prevailing party — either side. The court shall award costs and reasonable attorney's fees.
Can the defendant's profits be recovered?
They may be considered in computing actual damages where attributable to the impersonation.
Amendment History
- Added by Acts 2025, 89th Leg., R.S., Ch. 927 (H.B. 783), Sec. 1, eff. September 1, 2025.