The American Tort Reform Association (ATRA) has called on the Colorado Senate to reject House Bill 1291, cautioning that its approval could plunge the state into a "lawsuit inferno."
House Bill 1291 seeks to amend the Colorado Consumer Protection Act (CCPA) by expanding the definition of deceptive trade practices and strengthening enforcement mechanisms. According to the bill's fiscal note, it would permit the Attorney General or any injured party to file civil lawsuits against transportation network companies (TNCs), riders, or drivers in incidents involving death, sexual assault, kidnapping, or personal injury. The bill also proposes civil penalties of up to $100,000 per violation for TNCs found in breach of its provisions.
According to ATRA, House Bill 1291 could lead to an increase in private lawsuits, resulting in excessive litigation and higher legal expenses. The association argues that the bill's provisions might transform the CCPA into a vehicle for personal injury claims—traditionally under tort law—rather than addressing deceptive advertising practices. This shift could lead to a rise in lawsuits unrelated to consumer protection, thereby straining the legal system and businesses.
In its Legislative HeatCheck report, ATRA has previously labeled Colorado as a "Lawsuit Inferno," citing liability expansion and legislative trends favoring increased litigation. The report raises concerns about Colorado's legal climate, suggesting that such legislative changes might deter businesses and adversely affect the economy. ATRA warns that passing House Bill 1291 could reinforce this label, worsening the state's reputation for excessive litigation.
Founded in 1986, ATRA is a nonprofit organization focused on reforming the civil justice system. It advocates for tort reform through public education and legislative initiatives with the goal of creating a fairer legal environment. The organization includes a nationwide network of state-based liability reform coalitions and is supported by over 142,000 grassroots members.