Bill > SB174

This bill, titled "Prohibit Lead Generation Legal Marketing," aims to outlaw a specific type of marketing for legal services in Colorado. It defines "lead generation legal marketing" as any practice where a lawyer, law firm, or licensed legal paraprofessional pays a third party for information about potential clients or their legal issues, which is then sold to attorneys. The bill argues that this practice is inherently misleading because the third parties often impersonate legal professionals, use deceptive tactics like "bait-and-switch" or "look-alike" advertising, and can provide inaccurate or shared information to multiple law firms, harming consumers and the legal profession. Traditional legal marketing, where the attorney or firm is clearly identified, is still permitted. The bill prohibits paying for, engaging in, or selling leads generated through this prohibited marketing, with exceptions for attorneys authorized to practice in Colorado, those working on their behalf with clear identification, and non-profit legal service organizations. Violations can result in civil penalties of $10,000 per violation, plus attorney fees, and can also lead to criminal charges for offenses like criminal impersonation, fraud, or racketeering, enforced by the Attorney General or District Attorneys. The bill also grants the Attorney General the authority to create rules for enforcement and clarifies that it does not limit the Colorado Supreme Court's authority over the practice of law.