SB 174: Prohibit Lead Generation Legal Marketing - Colorado

Rerevised → Final Act · 5 edits · May 21, 2026

MODERATE

This bill prohibits attorneys and legal service providers from paying third parties to generate leads for legal cases, labeling this practice as a deceptive trade practice. It distinguishes between prohibited 'lead generation marketing' and allowed 'traditional legal marketing,' such as direct advertising where the lawyer is clearly identified. The law empowers the Attorney General and District Attorneys to pursue criminal charges for violations, while also allowing private citizens to sue for civil damages of $10,000 per violation.

Scope change

The bill applies to any person engaging in lead generation legal marketing within the state, including attorneys, law firms, licensed legal paraprofessionals, and third-party marketing firms. It explicitly exempts traditional marketing methods and fee-sharing arrangements between licensed legal professionals.

DEFINITION

Added a specific definition for 'lead generation legal marketing' as any marketing where a lawyer pays a third party for client information, while defining 'traditional legal marketing' as direct advertising where the lawyer is clearly identified.

REQUIREMENT

Prohibited attorneys and firms from paying money or compensation to third parties for lead generation services and from selling leads to attorneys.

ENFORCEMENT

Established that violations are subject to civil penalties of $10,000 per violation plus attorney fees, and criminal penalties including charges for impersonation and fraud.

Granted standing to private consumers who are harmed by these practices to file civil lawsuits to enforce the new section.

SCOPE

Clarified that the prohibition does not apply to fee-sharing between licensed attorneys or traditional marketing methods like search engine optimization and radio ads.

Revised → Rerevised · 2 edits · May 7, 2026

MINOR

The bill was re-revised to include additional House sponsors and to remove a specific section detailing how civil and criminal violations of lead generation marketing rules would be enforced by the Attorney General and District Attorneys. The removal of this text simplifies the bill by eliminating a paragraph that referenced enforcement under the Colorado Consumer Protection Act and the Colorado Criminal Code.

Scope change

The bill's scope regarding enforcement mechanisms was narrowed by removing a specific provision that outlined how violations would be prosecuted.

TECHNICAL

Added five new House sponsors (Clifford, Hamrick, Lindsay, Mabrey, Nguyen, Phillips, Rutinel) to the list of bill supporters.

ENFORCEMENT

Deleted a section (paragraphs 5 through 11) that explicitly stated violations of lead generation marketing laws could be enforced by the Attorney General and District Attorneys through civil and criminal penalties, including charges for impersonation, fraud, and racketeering.

Reengrossed → Revised · 3 edits · May 6, 2026

MINOR

The bill's header was updated to reflect that it is a 'Revised' version rather than 'Reengrossed,' indicating it has been amended on second reading in the second house. The substantive text was significantly altered by removing the opening 'Whereas' clauses that stated the bill's purpose and defined key terms like 'lead generation legal marketing.' These deletions strip the bill of its introductory narrative and specific definitions, leaving the remaining text as a standalone provision without context.

Scope change

The bill's scope appears to have been narrowed or obscured by the removal of the introductory clauses that defined the problem and the specific marketing practices the bill intended to prohibit.

DEFINITION

Deleted the 'Whereas' clauses that explained the bill's purpose and defined 'lead generation legal marketing'.

SCOPE

Removed the statement declaring it in the best interest of Coloradans to prohibit specific legal marketing practices.

TECHNICAL

Changed the document title from 'Reengrossed' to 'Revised' and updated the amendment history note.

Engrossed → Reengrossed · 3 edits · Apr 30, 2026

MINOR

The bill text was reengrossed to include additional co-sponsors and updated the legislative session metadata. The substantive definitions regarding lead generation marketing were partially removed, likely to be replaced or clarified in a subsequent version of the bill.

Scope change

The scope of the bill's applicability remains unchanged, but the list of sponsors was expanded to include several new legislators.

TECHNICAL

Added new co-sponsors to the Senate sponsorship list: Ball, Benavidez, Bridges, Coleman, Cutter, Daugherty, Exum, Kipp, and Rodriguez.

Updated the header from 'ENGROSSED' to 'REENGROSSED' and revised the note regarding the bill summary date to April 30, 2026.

DEFINITION

Removed the specific text defining 'lead generation legal marketing' and the clause regarding compensation to a third party for client information, likely as part of a revision process before final adoption.

Introduced → Engrossed · 3 edits · Apr 29, 2026

MINOR

The bill was amended to reorganize the legislative findings and definitions for clarity. The most significant change is the addition of 'licensed legal paraprofessionals' to the list of entities subject to the ban on lead generation legal marketing, expanding the scope beyond just attorneys and law firms. The text was also restructured to group related findings together and clarify that the ban applies to anyone conducting this practice, regardless of whether they are an attorney or a third-party marketer.

Scope change

The bill's scope was expanded to explicitly include licensed legal paraprofessionals in the prohibition against lead generation legal marketing, whereas the original text focused primarily on attorneys and law firms.

SCOPE

Added 'licensed legal paraprofessionals' to the list of entities prohibited from engaging in lead generation legal marketing.

DEFINITION

Reorganized the legislative findings to improve flow and clarity, moving from specific marketing tactics to the broader prohibition.

Updated the definition section to ensure consistency with the expanded scope including paraprofessionals.

Prohibit Lead Generation Legal Marketing

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