The American Tort Reform Association (ATRA) has called on the Colorado Senate to reject House Bill 1291, which could lead to an increase in private lawsuits under the Colorado Consumer Protection Act. ATRA warns that passing this bill might result in Colorado being labeled a "Lawsuit Inferno" on its Legislative HeatCheck.
"ATRA president Tiger Joyce stated, 'Colorado already faces the seventh-highest tort tax in the nation, with residents paying nearly $2,000 each year and almost 100,000 jobs lost annually due to excessive litigation costs.' He added that H.B. 1291 would worsen the situation by encouraging more lawsuits that do not protect consumers but benefit trial lawyers."
According to ATRA, the state's Consumer Protection Act is meant to assist consumers misled by deceptive advertising rather than serve as a broad platform for personal injury claims. The association believes lawsuits resulting from H.B. 1291 would likely involve serious incidents like car accidents or assaults, which should be addressed under existing tort law.
"If enacted," Joyce said, "this bill would allow lawyers to sidestep traditional tort law requirements and tack on consumer protection claims to nearly every lawsuit involving rideshare operations." He expressed concern that this approach could unnecessarily increase costs for rideshare companies and their users.
ATRA opposes H.B. 1291's enforcement mechanism and suggests regulatory compliance should be managed by government agencies instead of creating new legal avenues that could harm Colorado's business environment and consumers.
If the Senate advances this bill, ATRA urges Governor Jared Polis to veto it to prevent excessive litigation and its potential economic impact on the state.
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