Colorado SB 174: Prohibit Lead Generation Legal Marketing

Bill Text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-1003.01 Christopher McMichael x4775 SENATE BILL 26-174
Senate Committees House Committees
Judiciary
A BILL FOR AN ACT
CONCERNING THE PROHIBITION OF LEAD GENERATION MARKETING101
FOR LEGAL SERVICES.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill establishes that the practice of lead generation marketing
for legal services is a deceptive trade practice that is subject to
enforcement under the "Colorado Consumer Protection Act".
"Lead generation legal marketing" is defined in the bill as a form
of marketing in which a lawyer, law firm, or legal paraprofessional pays
money or other compensation to a third party to receive information about
SENATE SPONSORSHIP
Roberts,
HOUSE SPONSORSHIP
Carter and Soper, Garcia
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.

a potential client or case, including the client's contact information or
information about the potential client's legal issue or case.
The bill prohibits an attorney, law firm, or legal paraprofessional
from paying money or other compensation to any person engaged in lead
generation legal marketing.
The bill prohibits a person from engaging in the practice of lead
generation legal marketing. A person may not solicit or market for legal
services in Colorado unless the person is:
! A licensed attorney, law firm, or licensed legal
paraprofessional;
! Working on behalf of a licensed attorney, law firm, or
licensed legal paraprofessional and the attorney, law firm,
or licensed legal paraprofessional is clearly identified in
any advertisement and marketing materials, information, or
resources; or
! A nonprofit organization that provides legal services.
The bill establishes that a person that engages in the practice of
lead generation legal marketing may be subject to both civil and criminal
penalties.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 6-1-105, add2
(1)(qqqq) as follows:3
6-1-105. Unfair or deceptive trade practices - definitions.4
(1) A person engages in a deceptive trade practice when, in the5
course of the person's business, vocation, or occupation, the person:6
(qqqq) VIOLATES SECTION 6-1-741.7
SECTION 2. In Colorado Revised Statutes, add 6-1-741 as8
follows:9
6-1-741. Lead generation legal marketing - deceptive trade10
practice - enforcement - penalties - rules - definitions - legislative11
declaration.12
(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:13
(a) TRADITIONAL LEGAL MARKETING ALLOWS ATTORNEYS AND14
SB26-174-2-

LAW FIRMS TO ADVERTISE THEIR SERVICES WHILE CLEARLY IDENTIFYING1
THEMSELVES AND ALLOWING CONSUMERS TO MAKE INFORMED DECISIONS2
REGARDING THEIR LEGAL REPRESENTATION;3
(b) LEAD GENERATION LEGAL MARKETING FOR LEGAL SERVICES4
INVOLVES THIRD PARTIES THAT SOLICIT CONSUMERS WHO MAY NEED5
LEGAL SERVICES BY OBTAINING THE CONSUMER'S PERSONAL INFORMATION6
AND INFORMATION ABOUT THE CONSUMER'S LEGAL ISSUE AND THEN7
SELLING THAT INFORMATION TO ATTORNEYS OR LAW FIRMS;8
(c) LEAD GENERATION LEGAL MARKETING FOR LEGAL SERVICES IS9
INHERENTLY MISLEADING TO CONSUMERS BECAUSE THE PERSON10
CONDUCTING THE LEAD GENERATION LEGAL MARKETING PURPORTS TO BE11
AN ATTORNEY OR REPRESENTATIVE FROM A LAW FIRM BUT IS ACTUALLY12
NOT AN ATTORNEY OR LAW-FIRM REPRESENTATIVE;13
(d) LEAD GENERATION LEGAL MARKETING FIRMS TYPICALLY USE14
"BAIT-AND-SWITCH" TACTICS, "LOOK-ALIKE" ADVERTISING,15
IMPERSONATION, FRAUD, AND OTHER DECEPTIVE ADVERTISING PRACTICES16
TO TARGET INJURED OR VULNERABLE CONSUMERS WHO ARE IN NEED OF17
LEGAL REPRESENTATION;18
(e) LEAD GENERATION LEGAL MARKETING ALSO MISLEADS THE19
ATTORNEYS OR LAW FIRMS THAT PURCHASE THE CONSUMER INFORMATION20
FROM THE LEAD GENERATION LEGAL MARKETING ORGANIZATION BECAUSE21
THE CONSUMER INFORMATION IS OFTEN SOLD TO MULTIPLE FIRMS, THE22
INFORMATION IS ERRONEOUS, OR THE INFORMATION DOES NOT REPRESENT23
A VIABLE LEGAL CASE;24
(f) BECAUSE OF THE HARM THAT LEAD GENERATION LEGAL25
MARKETING CAN HAVE ON CONSUMERS, ATTORNEYS, AND THE LEGAL26
PROFESSION, IT IS IMPERATIVE THAT THIS PRACTICE BE PROHIBITED IN THE27
SB26-174-3-

STATE AND ENFORCED THROUGH CIVIL AND CRIMINAL PENALTIES;1
(g) CIVIL AND CRIMINAL VIOLATIONS RELATED TO THE PRACTICE2
OF LEAD GENERATION LEGAL MARKETING ARE CAPABLE OF BEING3
ENFORCED BY THE ATTORNEY GENERAL AND THE STATE'S DISTRICT4
ATTORNEYS UNDER THE "COLORADO CONSUMER PROTECTION ACT",5
ARTICLE 1 OF TITLE 6, AND THE COLORADO CRIMINAL CODE, INCLUDING,6
BUT NOT LIMITED TO, CRIMINAL IMPERSONA