A Bill for an Act
Page 1, Line 101Concerning reducing burdens to enforcement of laws
Page 1, Line 102prohibiting deceptive acts.
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 certain evidence that a person has engaged in an unfair or deceptive trade practice constitutes a significant impact to the public. The bill also clarifies that a deceptive trade practice claim cannot be based solely on a claim that a person breached a contract or engaged in negligence or on a claim for damages based on the rendering of professional services, unless the claim for damages involves an allegation of a material misrepresentation of fact, a failure to disclose material information, or an action that cannot be characterized as providing advice, judgment, or opinion.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:
Page 2, Line 3(a) For more than 100 years, it has been the policy of the United
Page 2, Line 4States and of the state of Colorado to promote honest competition among businesses and to discourage unfair competition;
Page 2, Line 5(b) In 1914, Congress passed the "Federal Trade Commission
Page 2, Line 6Act", 15 U.S.C. sec. 41 et seq., to prohibit "unfair methods of competition in commerce";
Page 2, Line 7(c) The "Federal Trade Commission Act" has been continually
Page 2, Line 8updated as the economy has evolved and currently prohibits "[u]nfair
Page 2, Line 9methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce";
Page 2, Line 10(d) In 1915, the Colorado general assembly passed legislation
Page 2, Line 11prohibiting "untrue, deceptive, or misleading" advertising, as codified in C.L. 1921 sec. 6942;
Page 2, Line 12(e) In 1969, the Colorado general assembly passed the "Colorado
Page 2, Line 13Consumer Protection Act", the first modern consumer protection law to
Page 2, Line 14prohibit "deceptive trade practices" and to protect consumers from unfair, unconscionable, and deceptive acts or practices;
Page 2, Line 15(f) In 1998, in Hall v. Walter, 969 P.2d 224, 234 (Colo. 1998), the
Page 2, Line 16Colorado supreme court limited the application of the "Colorado
Page 2, Line 17Consumer Protection Act", part 1 of article 1 of title 6, Colorado Revised
Page 2, Line 18Statutes, by holding that an injured individual or business must prove that
Page 3, Line 1an unfair, unconscionable, or deceptive act or practice "significantly
Page 3, Line 2impacts the public", placing a requirement on injured individuals or
Page 3, Line 3businesses to prove circumstances far outside their own knowledge or control;
Page 3, Line 4(g) The requirement that an injured individual or business prove
Page 3, Line 5that an unfair or deceptive trade practice "significantly impacts the
Page 3, Line 6public" is nowhere to be found in the text of the "Colorado Consumer Protection Act";
Page 3, Line 7(h) According to the most recent 50-state survey from the National
Page 3, Line 8Consumer Law Center, Colorado is one of only 7 states that curtail their
Page 3, Line 9consumer protection laws with this type of "significantly impacts the public" limitation;
Page 3, Line 10(i) According to the federal trade commission, Colorado ranks
Page 3, Line 11above the national average for reports of consumer fraud per capita, with the fifteenth highest reporting numbers; and
Page 3, Line 12(j) By clarifying actions brought under the "Colorado Consumer
Page 3, Line 13Protection Act", Colorado can join the overwhelming majority of other
Page 3, Line 14states that do not impose comparable barriers to consumer protection
Page 3, Line 15claims and, thereby, better promote honest competition among businesses, discourage unfair competition, and protect consumers.
Page 3, Line 16SECTION 2. In Colorado Revised Statutes, 6-1-113, add (5) and (6) as follows:
Page 3, Line 176-1-113. Civil actions - damages - other relief - class actions.
Page 3, Line 18(5) In an action commenced under this section, a person other
Page 3, Line 19than a person authorized to bring suit under section 6-1-103 may
Page 3, Line 20establish that an unfair or a deceptive act or practice
Page 3, Line 21significantly impacts the public because the act or practice:
Page 4, Line 1(a) Violates a provision of this title 6 that is a deceptive trade practice; or
Page 4, Line 2(b) Injured, had the capacity to injure, or has the capacity to injure other persons.
Page 4, Line 3(6) In an action commenced under this section:
Page 4, Line 4(a) A breach of contract claim, without an allegation of
Page 4, Line 5additional conduct, does not constitute a claim that a person engaged in a deceptive trade practice;
Page 4, Line 6(b) A claim of negligence, without an allegation of
Page 4, Line 7additional conduct, does not constitute a claim that a person engaged in a deceptive trade practice; and
Page 4, Line 8(c) A claim for damages based on the rendering of a
Page 4, Line 9professional service, the essence of which service is providing
Page 4, Line 10advice, judgment, opinion, or similar professional skill, without
Page 4, Line 11an allegation of additional conduct, does not constitute a
Page 4, Line 12claim that a person engaged in a deceptive trade practice; except that this subsection (6)(c) does not apply to:
Page 4, Line 13(I) An express misrepresentation of a material fact that
Page 4, Line 14cannot be characterized as providing advice, judgment, or opinion;
Page 4, Line 15(II) A failure to disclose information concerning goods or
Page 4, Line 16services, which information was known at the time of the
Page 4, Line 17transaction, if such failure to disclose the information was
Page 4, Line 18intended to induce the consumer into a transaction that the
Page 4, Line 19consumer would not have entered into had the information been disclosed;
Page 4, Line 20(III) An action or course of action that cannot be characterized as providing advice, judgment, or opinion; or
Page 5, Line 1(IV) A breach of an express warranty that cannot be characterized as providing advice, judgment, or opinion.
Page 5, Line 2SECTION 3. Safety clause. The general assembly finds,
Page 5, Line 3determines, and declares that this act is necessary for the immediate
Page 5, Line 4preservation of the public peace, health, or safety or for appropriations for
Page 5, Line 5the support and maintenance of the departments of the state and state institutions.