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Second Regular Session
Sixty-first General Assembly
LLS NO. 980943.01D BWM
HOUSE BILL 981415
STATE OF COLORADO
BY REPRESENTATIVE Schauer;
also SENATOR Alexander.
BUSINESS AFFAIRS & LABOR
A BILL FOR AN ACT
CONCERNING THE PROTECTION FROM UNCONSCIONABLE PRACTICES
OF PARTIES TO TRANSACTIONS INVOLVING TRADE OR COMMERCE.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Specifies that any unconscionable method, act, or
practice in the conduct of any trade or commerce violates the
provisions of the "Unfair Practices Act" whether it
occurs before, during, or after the conduct of the trade or commerce.
Sets forth circumstances to be considered by a court in determining
whether a method, act, or practice is unconscionable. Authorizes
the attorney general to enforce the provisions of this act through
civil enforcement mechanisms and specifies that violations of
this act constitute a misdemeanor like other violations of the
"Unfair Practices Act".
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Article 2 of title 6, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
62108.5. Unconscionable methods, acts, or practices. (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, "TRADE" OR "COMMERCE" MEANS THE ADVERTISING, OFFERING FOR SALE, SELLING, LEASING, RENTING, COLLECTING DEBTS ARISING OUT OF THE SALE OR LEASE OF, OR DISTRIBUTING, GOODS OR SERVICES, EITHER TO OR FROM LOCATIONS WITHIN THE STATE OF COLORADO, OR DIRECTLY OR INDIRECTLY AFFECTING THE PEOPLE OF THIS STATE.
(2) ANY UNCONSCIONABLE PRACTICE IN THE CONDUCT OF ANY TRADE OR COMMERCE VIOLATES THE PROVISIONS OF THIS ARTICLE WHETHER IT OCCURS BEFORE, DURING, OR AFTER THE CONDUCT OF THE TRADE OR COMMERCE.
(3) IN DETERMINING WHETHER A PRACTICE IS UNCONSCIONABLE, THE FOLLOWING CIRCUMSTANCES SHALL BE TAKEN INTO CONSIDERATION BY THE COURT:
(a) WHETHER THE ALLEGED VIOLATOR KNOWINGLY, OR WITH REASON TO KNOW, TOOK ADVANTAGE OF THE INABILITY OF THE PERSON REASONABLY TO PROTECT THE PERSON'S INTERESTS BECAUSE OF THE PERSON'S PHYSICAL INFIRMITY, IGNORANCE, ILLITERACY, INABILITY TO UNDERSTAND THE LANGUAGE OF AN AGREEMENT, OR SIMILAR FACTOR;
(b) WHETHER, AT THE TIME THE TRANSACTION WAS ENTERED INTO, THE ALLEGED VIOLATOR KNEW OR HAD REASON TO KNOW THAT THE PRICE GROSSLY EXCEEDED THE PRICE AT WHICH SIMILAR PROPERTY OR SERVICES WERE READILY AVAILABLE IN SIMILAR TRANSACTIONS BY SIMILAR PERSONS, ALTHOUGH PRICE ALONE IS INSUFFICIENT TO PROVE AN UNCONSCIONABLE METHOD, ACT, OR PRACTICE;
(c) WHETHER THE ALLEGED VIOLATOR KNOWINGLY, OR WITH REASON TO KNOW, INDUCED THE CONSUMER TO ENTER INTO A TRANSACTION THAT WAS EXCESSIVELY ONESIDED IN FAVOR OF THE ALLEGED VIOLATOR;
(d) WHETHER THE SALES CONDUCT OR PATTERN OF SALES CONDUCT WOULD OUTRAGE OR OFFEND THE PUBLIC CONSCIENCE, AS DETERMINED BY THE COURT.
SECTION 2. 62111 (2), Colorado Revised Statutes, is amended to read:
62111. Unlawful acts
remedy license. (2) Without
prejudice to the rights of any person, firm, private corporation,
municipal corporation, public corporation, or trade association
to bring an action, the attorney general of the state of Colorado,
as an incident to and power of
THE ATTORNEY GENERAL'S office, has like powers to those provided
in subsection (1) of this section, and it is his
THE ATTORNEY GENERAL'S duty, upon showing by any person, firm,
private corporation, municipal corporation, public corporation,
or trade association that there is reason to believe that any
person subject to the terms of this article is violating any term
of sections 62103 to 62108
62108.5 or section 62110, to prosecute
actions for violation of any provisions of this article, and to
seek injunctions or restraining orders to enjoin the continuance
thereof by any defendant.
SECTION 3. 62116, Colorado Revised Statutes, is amended to read:
Any person, firm, or corporation, whether as principal, agent,
officer, or director, for
or itself SUCH PERSON OR ENTITY,
or for another person, or for any firm or corporation who violates
any of the provisions of sections 62103 to 62108
62108.5 or section 62110, is guilty of
a misdemeanor for each single violation and, upon conviction thereof,
shall be punished by a fine of not less than one hundred dollars
nor more than one thousand dollars, or by imprisonment for not
more than six months, or by both such fine and imprisonment.
SECTION 4. Effective date applicability. This act shall take effect upon passage and shall apply to acts occurring or committed on or after said date.
SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.