Attorney General Phil Weiser announced today that his office has reached a settlement with Compliance Services Colorado, resolving allegations that the company mailed marketing materials to Colorado businesses that appeared to be official invoices from the Colorado Secretary of State’s Office, but lacked required disclaimers and included purported deadlines in violation of state law. As part of the settlement, the company will pay $95,631 in refunds and will be forbidden from soliciting fees for filing documents with the secretary of state.
“Business owners in Colorado should know that filing periodic reports with the secretary of state’s office costs $25, and while businesses are free to pay someone to file reports for them, mailers made to look like invoices or legal documents are just ads,” Weiser said. “In this case, the settlement ensures that people who received these illegal mailers get some of their money back while also preventing this company from collecting fees to file documents with the secretary of state’s office in the future.”
While Colorado law allows businesses to market some periodic report filing services, it requires marketing materials to have clear disclaimers in at least 24-point font at the top of any materials stating, “This is an advertisement. This offer is not being made by, or on behalf of, any government agency. You are not required to make any payment or take any other action in response to this offer.” The law also prohibits the use of deadlines that appear to impose a legal duty on the business or consumer being solicited. Compliance Services Colorado charged $75 to file reports on behalf of businesses.
During the state’s investigation, the attorney general’s office identified 3,640 individuals and businesses owed a refund under the terms of the settlement. The $95,631 will be split evenly between all of those affected and the company will mail them refund checks.
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