Legal Matters: Direct Marketers Take Colorado to the Supreme Court

The statute also requires those merchants to provide notices to their customers — both at the time of the transaction and by an annual First Class mailing — of their obligation to self-report taxes. The DMA filed its lawsuit in the United States District Court in Denver and obtained both a preliminary injunction and a permanent injunction barring the state from enforcing the law. The federal district court found that the statute violated the Commerce Clause of the United States Constitution because it discriminated against out-of-state retailers and was a burden on interstate commerce.