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 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 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.      Unless a person meets certain criteria, the bill 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 not solicit or market for legal services in Colorado unless if the person is: A licensed attorney, law firm, or licensed legal paraprofessional Authorized by the Colorado supreme court to practice law in Colorado ;Working on behalf of a licensed attorney, law firm, or licensed legal paraprofessional and the attorney, law firm, or licensed legal paraprofessional person authorized by the Colorado supreme court to practice law in Colorado and that person is clearly identified in any advertisement, and marketing materials, information, or resources; orA nonprofit organization that provides engages in 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.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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