Secretary of State Jena Griswold Applauds Introduction of Legislation to Protect Businesses from Deceptive Solicitations

Denver, January 20, 2023 - Senate Bill 23-037, the Deceptive Solicitations bill, was introduced in the Colorado Legislature. This legislation is one of Secretary Griswold’s priorities for the 2023 legislative session and would put meaningful restrictions on deceptive solicitations in Colorado sent by third parties to Colorado businesses, including business filers, UCC filers, and notaries public.

The bill is sponsored by Senator Lisa Cutter.

“Colorado business owners are the backbone of Colorado’s economy. I’m proud as Secretary of State to support this bill that protects business owners and prevents bad actors from misleadingly charging exorbitant fees,” said Secretary of State Jena Griswold. “I will always work to make it easier to run a business in Colorado so that the residents of our state can thrive and our economy can grow. I thank Senator Cutter for introducing this important legislation.”

“As a small business owner, I’ve received many deceptive solicitations over the years, as have many of my colleagues. I also have a deep interest in advocating for transparency and accuracy of information, so I’m thrilled to work with the Secretary of State on this important issue,” said Senator Cutter.

The solicitations addressed in this bill are often sent by third-party organizations who encourage Colorado business owners to pay exorbitant costs for a service which can be done directly through the Secretary of State’s Office. This includes offers to file periodic reports or retrieve free publicly available documents, such as Certificates of Good Standing. The solicitations often mislead business owners by appearing to be sent from a government office or entity.

The Deceptive Solicitations bill will establish potential penalties for entities that continue to send solicitations that fail to meet the criteria established in the bill. Any solicitation from a third party related to documents filed with or provided by the Secretary of State’s office must include:

• A written statement in the same language of the document declaring that the solicitation is an advertisement and not being sent by or affiliated with a government agency.
  • For mailings: no font in the document can be larger than the size of the disclaimer, and the disclaimer must be no smaller than 24-point font.
  • For electronic messages: the disclaimer must be at the beginning of any text or email communication.
• Information explaining where an individual can file the document directly or retrieve a copy of the public record themselves from the Secretary of State’s Office.
• The name, physical address, and contact information of the person soliciting the fee or sending the solicitation.

Solicitations may not include deadline dates or other language that implies the document:

• Is issued by a state agency or local government.
• Imposes a legal duty on the person being solicited.

The bill includes an exemption for entities that have an existing relationship with the business owner and provide a variety of business services, including but not limited to acting as their registered agent

Full text of the bill (PDF)