Colorado § 6-1-102 - Definitions.

§ 6-1-102. Definitions.

As used in this article 1, unless the context otherwise requires:

(1) "Advertisement" means an attempt by publication, dissemination, solicitation, or circulation, whether visual, oral, or written, to induce directly or indirectly a person to enter into a transaction or acquire a title or an interest in property.

(2) (a) "Article" means a product.

(b) "Article" does not mean a trademark, label, or distinctive dress in packaging.

(3) "Business day" means any calendar day except Sunday, New Year's day, the third Monday in January observed as the birthday of Dr. Martin Luther King, Jr., Presidents' day, Memorial day, Juneteenth, Independence day, Labor day, Frances Xavier Cabrini day, Veterans' day, Thanksgiving, and Christmas.

(4) "Buyers' club" means a person engaged in advertising or selling memberships that provide an exclusive right to members to purchase goods, food, services, or property at purported discount prices.

(5) "Certification mark" means a mark that is used in connection with the goods or services of a person other than the certifier in order to indicate:

(a) Geographic origin, material, mode of manufacture, quality, accuracy, or other characteristics of the goods or services; or

(b) That the work or labor on the goods or services was performed by members of a union or other organization.

(6) "Collective mark" means a mark used by members of a cooperative, association, or other collective group or organization to identify goods or services and distinguish them from the goods or services of others or to indicate membership in the collective group or organization.

(7) "Dance studio" means a person engaged in the advertisement or sale of dance studio services.

(8) "Dance studio services" means instruction, training, or assistance in dancing; the use of dance studio facilities; membership in any group, club, or association formed by a dance studio; and participation in dance competitions, dance showcases, trips, tours, parties, and other organized events and related travel arrangements.

(9) (a) "Discount health plan" means a program evidenced by a membership agreement, contract, card, certificate, device, or mechanism, which program offers health-care services, as defined in section 10-16-102 (33), or related products, including prescription drugs and medical equipment, at purported discounted rates from health-care providers advertised as participating in the program.

(b) "Discount health plan" does not include a program in which:

(I) A participating provider has agreed, as a condition of the participating provider's participation in the program, to negotiate the prices to be charged for the participating provider's services directly with consumers in the program; and

(II) The participating provider is not required to offer discounted prices for the participating provider's services as part of the program.

(10) "Elderly person" means a person sixty years old or older.

(11) "Food" means any raw, cooked, or processed edible substance, beverage, or ingredient used or intended for use or for sale in whole or part for human consumption.

(12) (a) "Health club" means an establishment that provides health club services or health club facilities that purport to improve or maintain a user's physical condition or appearance through exercise.

(b) "Health club" includes a spa, an exercise club, an exercise gym, a health studio, and a playing court.

(c) "Health club" does not include:

(I) An establishment operated by a nonprofit organization or public or private school, college, or university;

(II) An establishment operated by the federal government, the state of Colorado, or any of the state's political subdivisions;

(III) An establishment that does not provide health club services or health club facilities as its primary purpose or business; or

(IV) A health-care facility licensed or certified by the department of public health and environment pursuant to its authority under section 25-1.5-103.

(13) "Health club facilities" means equipment, physical structures, and other tangible property used by a health club to conduct its business. "Health club facilities" includes saunas, whirlpool baths, gymnasiums, running tracks, playing courts, swimming pools, shower areas, and exercise equipment.

(14) "Health club services" means services, privileges, or rights offered for sale or provided by a health club.

(15) "Manufactured home" has the meaning set forth in section 42-1-102 (48.8).

(16) "Mark" means a word, name, symbol, device, or any combination thereof in any form or arrangement.

(17) "Motor vehicle" has the meaning set forth in section 44-20-102.

(18) "Person" means an individual, a corporation, a business trust, an estate, a trust, a partnership, an unincorporated association, or two or more thereof having a joint or common interest or any other legal or commercial entity.

(19) "Promoting a pyramid promotional scheme" means inducing or attempting to induce one or more persons to become participants in, or assisting another person to promote, a pyramid promotional scheme by means of references or otherwise.

(20) "Property" means:

(a) Real or personal property;

(b) Both real and personal property;

(c) Intangible property; and

(d) Services.

(21) (a) "Pyramid promotional scheme" means any program using a pyramid or chain process by which a participant in the program gives a valuable consideration in excess of fifty dollars for the opportunity or right to receive compensation or other things of value in return for inducing other persons to become participants for the purpose of gaining new participants in the program.

(b) "Pyramid promotional scheme" does not include ordinary sales of goods or services to persons that are not purchasing in order to participate in a scheme described in subsection (21)(a) of this section.

(22) "Resale time share" means a time share, including all or substantially all ownership, rights, or interests associated with the time share:

(a) That has been acquired previously for personal, family, or household use; and

(b) (I) That is owned by a Colorado resident; or

(II) The accommodations and other facilities of which are available for use through the time share and are primarily located in Colorado.

(23) "Sale" means a sale, an offer for sale, or an attempt to sell a product, good, or property for consideration.

(24) "Service mark" means a mark used by a person to identify services and distinguish them from the services of others.

(25) "Time share" means a time share estate, as defined in section 38-33-110 (5), a time share use, as defined in section 12-10-501 (4), or any campground or recreational membership that does not constitute the transfer of an interest in real property.

(26) (a) "Time share resale entity" means a person that, either directly or indirectly, engages in a time share resale service.

(b) "Time share resale entity" does not include:

(I) The developer, association of time share owners, or other person responsible for managing or operating the plan or arrangement by which the rights or interests associated with a resale time share are utilized, but only to the extent the resale time share is part of an existing plan or arrangement managed by that developer, association, or person;

(II) An attorney, a title agent, a title company, or an escrow company that provides closing, settlement, or other transaction services, so long as the services are provided in the normal course of business in supporting a conveyance of title or in issuing title insurance products in a time share resale transaction. To the extent the attorney, title agent, title company, or escrow company is engaged in providing services or products that are outside the normal course of business in supporting a conveyance of title or in issuing title insurance products or has an affiliated business arrangement with a party to a time share resale transaction, this exemption does not apply.

(III) A real estate broker operating within the scope of activities specified in section 12-10-201 (6) with respect to a time share resale transaction so long as the real estate broker does not collect a fee in advance. To the extent a real estate broker is engaged in activities outside the scope of activities specified in section 12-10-201 (6), collects an advance fee, or has an affiliated business arrangement with a party to a time share resale transaction, this exemption does not apply.

(27) "Time share resale service" means any of the following activities, engaged in directly or indirectly and for consideration, regardless of whether performed in person, by mail, by telephone, or by any other mode of internet or electronic communication, unless performed by a person that, pursuant to subsection (26)(b) of this section, is exempted:

(a) The sale, rental, listing, or advertising of, or an offer to sell, rent, list, or advertise, any resale time share;

(b) The purchase or offer to purchase any resale time share;

(c) The transfer or offer to assist in the transfer of any resale time share; or

(d) The invalidation of, or an offer to invalidate, the purchase or ownership of any resale time share or the purchase of any time share resale service.

(28) (a) "Time share resale transfer agreement" means a contract between a time share resale entity and the owner of a resale time share in which the time share resale entity agrees to transfer, or offers to assist in the transfer of, all or substantially all of the rights or interests in a resale time share on behalf of the owner of the resale time share.

(b) (I) "Time share resale transfer agreement" does not include a contract to sell, rent, list, advertise, purchase, or transfer a resale time share if the owner of the resale time share:

(A) Upon entering the contract, reasonably expects to receive consideration in exchange for the resale time share; and

(B) Upon the actual sale, rental, or transfer of the time share, receives consideration.

(II) For purposes of this subsection (28), a transfer of the resale time share does not, by itself, constitute consideration.

(29) "Trademark" means a mark used by a person to identify goods and distinguish them from the goods of others.

(30) "Trade name" means a word, name, symbol, or device, or any combination thereof, in any form or arrangement used by a person to identify the person's business, vocation, or occupation and distinguish it from the business, vocation, or occupation of others.

(31) "Used motor vehicle" has the meaning set forth in section 42-6-201 (8).

Source: L. 69: p. 371, § 1. C.R.S. 1963: § 55-5-1. L. 73: p. 619, § 1. L. 84: (4.5) and (11.5) added, pp. 289, 290, §§ 1, 1, effective July 1. L. 85: (4.6) to (4.8) added, p. 306, § 1, effective June 1. L. 87: (2.5) added and (9), (10), and (11.5) amended, p. 356, § 1, effective July 1. L. 88: (4.2) and (4.3) added, p. 341, § 1, effective July 1. L. 90: (2.7) and (11.2) added, p. 380, § 1, effective July 1. L. 92: (5.5) and (14) added, p. 1835, § 1, effective April 29. L. 93: (11.2) repealed, p. 943, § 1, effective July 1. L. 94: (4.6)(d) amended, p. 2721, § 310, effective July 1. L. 98: (4.9) and (13.5) added, p. 746, § 1, effective August 5. L. 2000: (2.7) amended, p. 244, § 1, effective March 30; (4.4) added, p. 1107, § 1, effective August 2. L. 2003: (4.6)(d) amended, p. 699, § 3, effective July 1. L. 2004: (4.1) added and (4.2) and (4.3) amended, p. 967, § 7, effective May 21. L. 2013: (4.3) amended (HB 13-1266), ch. 217, p. 984, § 37, effective May 13; (9.5), (11.7), (11.8), and (11.9) added, (SB 13-182), ch. 166, p. 539, § 1, effective August 7. L. 2017: IP and (5.5) amended, (SB 17-240), ch. 395, p. 2063, § 43, effective July 1. L. 2018: (5.5) amended, (SB 18-030), ch. 7, p. 138, § 5, effective October 1. L. 2019: (11.5) and (11.7)(b)(III) amended, (HB 19-1172), ch. 136, p. 1643, § 7, effective October 1. L. 2020: (2.5) amended, (HB 20-1031), ch. 43, p. 144, § 4, effective September 14. L. 2022: (2.5) amended, (SB 22-139), ch. 149, p. 958, § 3, effective May 2; (4.9) amended, (SB 22-212), ch. 421, p. 2965, § 12, effective August 10. L. 2024: (10) amended, (HB 24-1356), ch. 346, p. 2349, § 1, effective June 3. L. 2026: Entire section amended, (HB 26-1426), ch. 334, p. 1983, § 7, effective August 12.

Cross references: For the legislative declaration in HB 20-1031, see section 1 of chapter 43, Session Laws of Colorado 2020. For the legislative declaration in SB 22-139, see section 1 of chapter 149, Session Laws of Colorado 2022.

ANNOTATION

Law reviews. For article, "Criminal Prosecutions under the Colorado Securities Act", see 47 U. Colo. L. Rev. 233 (1976). For article, "Legal Aspects of Health and Fitness Clubs: A Healthy and Dangerous Industry", see 15 Colo. Law. 1787 (1986).

The Colorado general assembly omitted the definition of "advertise", recognizing that definitions in statutes should be limited to the fewest number of words and phrases possible, and that there is no need for a redefinition of terms. People ex rel. Dunbar v. Gym of Am., Inc., 177 Colo. 97, 493 P.2d 660 (1972).

So meaning of "advertise" determined by reference to "advertisement". Statutes must be construed as a whole, and the several parts of a statute reflect light upon each other, so in this section the meaning of "advertise" can and must be determined by reference to the definition of "advertisement". People ex rel. Dunbar v. Gym of Am., Inc., 177 Colo. 97, 493 P.2d 660 (1972).

For the word "advertise" is but the verbal form of the noun "advertisement", so what the statutory definition of the noun encompasses must by common sense apply to the verbal form of the noun when used in the same statute. People ex rel. Dunbar v. Gym of Am., Inc., 177 Colo. 97, 493 P.2d 660 (1972).

Advertisement or sale of real property covered. Read together, the definitions in subsections (1), (8) and (10) indicate an intent by the general assembly to extend the coverage of the Consumer Protection Act to transactions involving the advertisement or sale of real property. People ex rel. MacFarlane v. Alpert Corp., 660 P.2d 1295 (Colo. App. 1982).

Similarly, although the Colorado Consumer Protection Act does not specifically define "disparagement" anywhere, the word has such a common meaning that to define it would be an exercise in redundancy, since legal literature contains many instances of the use of the word "disparagement" when dealing with forbidden trade practices. People ex rel. Dunbar v. Gym of Am., Inc., 177 Colo. 97, 493 P.2d 660 (1972).

If a claim by a corporation is within the zone of interests of the Colorado Consumer Protection Act, a corporation is a person entitled to bring a claim under the Act. Fiberglass Component Prod. v. Reichhold Chems., Inc., 983 F. Supp. 948 (D. Colo. 1997).

The definition of "person" is broad enough to encompass insurance companies. Thus, by its own terms, the Colorado Consumer Protection Act applies to the acts or practices of insurance companies. Showpiece Homes Corp. v. Assurance Co. of Am., 38 P.3d 47 (Colo. 2001).

"Pyramid promotional scheme". A pyramid sales scheme is no less a security because of the sale of distributorships where what, in essence, was being offered was an opportunity to contribute money and to share in the profits of an enterprise managed and owned by Master Industries. Sauer v. Hays, 36 Colo. App. 190, 539 P.2d 1343 (1975).

Although pyramid promotional schemes as defined in subsection (9) are not specifically included within the securities act, that statutory prohibition is indicative of the attitude of the general assembly to schemes of that nature. Sauer v. Hays, 36 Colo. App. 190, 539 P.2d 1343 (1975).

Promoters of pyramid promotional plans must make full, complete, and fair disclosure, through the registration statement, of the perils involved before their prospects invest their money. Sauer v. Hays, 36 Colo. App. 190, 539 P.2d 1343 (1975).

A pyramid promotional scheme involved an "investment contract", a "common enterprise" whereby the "fortunes of the investors" were "inextricably tied" and dependent upon the efforts and success of the corporation in obtaining and recruiting new prospects for its seminars and in consummating sales, and constituted the sale of securities in violation of Colorado's securities act. Sauer v. Hays, 36 Colo. App. 190, 539 P.2d 1343 (1975).