SB 26-174

Senate Bill 26-174 prohibits lawyers and law firms from paying third parties for client information or legal cases, which is known as "lead generation marketing." This practice would be considered deceptive under Colorado's consumer protection laws. The bill also restricts who can solicit or market legal services in the state by requiring that only licensed attorneys, authorized representatives of such attorneys, or nonprofit organizations providing legal services can do so. Since the bill has been signed into law, it is now enforceable and violators could face civil and criminal penalties.

Official Summary

The act 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 act as a form of marketing in which a lawyer, law firm, or licensed legal paraprofessional pays money or other compensation to a third party to receive information about a potential client or case, including the potential client's contact information or information about the potential client's legal issue or case.     Unless a person meets certain criteria, the act prohibits a person from paying money or other compensation for lead generation legal marketing services, engaging in the practice of lead generation legal marketing, or selling leads to an attorney, law firm, or licensed legal paraprofessional.     A person may solicit or market for legal services in Colorado only if the person is:Authorized by the Colorado supreme court to practice law in Colorado;Working on behalf of a person authorized by the Colorado supreme court to practice law in Colorado and that person is clearly identified in any advertisement, marketing materials, information, or resources; orA nonprofit organization that engages in legal services.     The act establishes that a person that engages in the practice of lead generation legal marketing may be subject to both civil and criminal penalties.(Note: This summary applies to this bill as enacted.)

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