C.R.S. 6-1-304
6-1-304. Unlawful telemarketing practices
(1)
A commercial telephone seller engages in an unlawful telemarketing practice when, in the course of any
commercial telephone solicitation, the seller:
(a)
Conducts business as a commercial telephone seller without having registered with the attorney general,
as required by section 6-1-303;
(b)
Fails to allow the purchaser in any telephone sales transaction to cancel any purchase or agreement to
purchase goods, services, or property at any time before the expiration of three business days after the
purchaser's receipt of such goods, services, or property by delivering or mailing to the commercial telephone
seller written notice of cancellation. Notice of cancellation, if sent by mail, is deemed to be given as of
the date the mailed notice was postmarked.
(c)
Fails to refund all payments made by any purchaser in any telephone sales transaction within thirty days
after the commercial telephone seller receives notice of cancellation from the purchaser; except that:
(I)
If the purchaser has received goods or property from the commercial telephone seller, other than an item
represented as free, the commercial telephone seller shall refund all payments made by the purchaser within
thirty days after the commercial telephone seller's receipt of the returned goods or property;
(II)
If the purchaser has received services, including those received during the course of a pay-per-call
service call, which services cannot, by their nature, be returned, the commercial telephone seller is not
required to refund payments to the purchaser;
(d)
Fails to disclose to the purchaser during a telephone solicitation that the purchaser has the
cancellation rights set forth in paragraph (b) of this subsection (1);
(e)
Misrepresents to any person that the person has won a contest, sweepstakes, or drawing, or that the
person will receive free goods, services, or property;
(f)
Represents that the seller's goods, services, or property are "free" if the commercial telephone seller
charges or collects a fee from the purchaser in exchange for providing or delivering such goods, services, or
property;
(g)
Makes any reference to the commercial telephone seller's compliance with this article to any purchaser
without also disclosing that compliance with this article does not constitute approval by any governmental
agency of the seller's marketing, advertisements, promotions, goods, or services;
(h)
Engages in any deceptive trade practice defined in section 6-1-105 or part 7 of this article.
(2)
Paragraphs (b) and (d) of subsection (1) of this section do not apply to a transaction in which the
consumer obtains a full refund for the return of undamaged or unused goods or a cancellation of services by
giving notice to the seller within seven days after receipt by the consumer and the seller processes the
refund or cancellation within thirty days after receipt of the returned merchandise or the consumer's request
for refund for services not performed or a pro rata refund for any services not yet performed for the
consumer. The availability and terms of the return and refund privilege shall be disclosed to the consumer
orally by telephone and in writing with any advertising or promotional material or with the delivery of the
product or service. If a seller offers consumers an unconditional guarantee, a clear disclosure of such
guarantee by using the words "satisfaction guaranteed", "free inspection", or "no-risk guarantee" satisfy the
disclosure requirements of this subsection (2).
(3)
The unlawful telemarketing practices listed in this section are in addition to and do not limit the types
of unfair trade practices actionable at common law or under other civil and criminal statutes of this state.
(4)
(a)
On or after September 1, 2005, a person commits an unlawful telemarketing practice if the person
knowingly:
(I)
lists a cellular telephone number in a director for a commercial purpose unless the person whose number
has been listed has given affirmative consent, through written, oral, or electronic means, to such listing; or
(II)
uses a scanning device or other electronic means to identify a cellular telephone number and to make a
commercial telephone solicitation to a cellular telephone.
(b)
This subsection (4) shall not apply to a commercial telephone solicitation that is in relation to a
preexisting commercial relationship between the person and the person who owns the cellular telephone.
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Compliance Guide:
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