Colorado § 18-5-301 - Fraud in effecting sales.

§ 18-5-301. Fraud in effecting sales.

(1) A person commits a class 2 misdemeanor if, in the course of business, he knowingly:

(a) Uses or possesses for use a false weight or measure, or any other device for falsely determining or recording any quality or quantity; or

(b) Sells, offers, or exposes for sale or delivers less than the represented quantity of any commodity or service; or

(c) Takes or attempts to take more than the represented quantity of any commodity or service when as buyer he furnishes the weight or measure; or

(d) Sells, offers, or exposes for sale an adulterated or mislabeled commodity. "Adulterated" means varying from the standard of composition or quality prescribed by or pursuant to any statute of the state of Colorado or the United States providing criminal penalties for such variance, or set by established commercial usage. "Mislabeled" means varying from the standard of truth or disclosure in labeling prescribed or pursuant to any statute of the state of Colorado or the United States providing criminal penalties for such variance, or set by established commercial usage; or

(e) Makes a false or misleading statement in any advertisement addressed to the public or to a substantial segment thereof for the purpose of promoting the purchase or sale of property or services.

(f) Repealed.

Source: L. 71: R&RE, p. 441, § 1. C.R.S. 1963: § 40-5-301. L. 79: (1)(f) repealed, p. 730, § 11, effective July 1.

ANNOTATION

Law reviews. For article, "Criminal Prosecutions under the Colorado Securities Act", see 47 U. Colo. L. Rev. 233 (1976).

Annotator's note. Since § 18-5-301 is similar to former CSA, C. 48, § 317, a relevant case construing that provision has been included in the annotations to this section.

The state of Colorado has exercised its police power by proscribing false and misleading statements in advertising with a criminal sanction. Ve-ri-tas, Inc. v. Advertising Review Council of Metro. Denver, Inc., 411 F. Supp. 1012 (D. Colo. 1976), aff'd, 567 F.2d 963 (10th Cir. 1977).

And has not violated first amendment freedoms. The state of Colorado can sanction false and misleading advertising through the criminal process without violating first amendment freedoms. Ve-ri-tas, Inc. v. Advertising Review Council of Metro. Denver, Inc., 411 F. Supp. 1012 (D. Colo. 1976), aff'd, 567 F.2d 963 (10th Cir. 1977).

This section is sufficiently broad to cover practically every known method of public announcement which can be made or circulated by means of printed matter. People v. Byrnes, 117 Colo. 528, 190 P.2d 584 (1948).

Publication need not be in newspaper. To hold that in order to violate the provisions of this section the publication must be made in a newspaper is to unduly restrict the meaning of the act and wholly disregard its plain and unambiguous provisions. People v. Byrnes, 117 Colo. 528, 190 P.2d 584 (1948).

Conspiracy to effect sales. If a defendant's agents and solicitors, in cooperation and agreement with him, make false and misleading statements in order to effectuate sales of defendant's publications, the latter is guilty of a conspiracy to effect sales under the provisions of this section. People v. Byrnes, 117 Colo. 528, 190 P.2d 584 (1948).

Truth of statements is a jury question. Whether written statements and representations concerning a book to be published were untrue and misleading was for the jury. People v. Byrnes, 117 Colo. 528, 190 P.2d 584 (1948).