The American Tort Reform Association (ATRA) has called on the Colorado Senate to reject House Bill 1291, which would enable more private lawsuits under the Colorado Consumer Protection Act. ATRA warns that passing this bill could result in Colorado being labeled a "Lawsuit Inferno" on its Legislative HeatCheck.
"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," said ATRA president Tiger Joyce. "H.B. 1291 would only make matters worse by encouraging a new wave of lawsuits that do nothing to protect consumers and everything to enrich trial lawyers."
ATRA argues that the state's Consumer Protection Act was intended to aid consumers misled by deceptive advertising, not as a means for personal injury claims. The association believes lawsuits resulting from H.B. 1291 are unlikely to involve refunds for misleading fares but will instead arise from incidents like car accidents or assaults, which should be addressed under established tort law.
"If enacted, this bill would allow lawyers to sidestep traditional tort law requirements and tack on consumer protection claims to nearly every lawsuit involving rideshare operations, purely to threaten businesses with additional liability and drive-up settlement demands," Joyce added. "This approach is unnecessary and risks increasing costs for rideshare companies, drivers, and riders alike."
ATRA's opposition centers on what it sees as a misguided enforcement mechanism within H.B. 1291. The organization believes regulatory compliance should be managed by government agencies rather than creating new legal avenues that could harm Colorado's business environment.
Should the Senate pass this bill, ATRA urges Governor Jared Polis to veto it in order to shield Colorado from excessive litigation and its potential economic impacts.
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