DENVER (AP) -- Direct marketers are challenging Colorado's new online sales tax law.
The Direct Marketing Association says it filed a lawsuit Wednesday in federal court in Denver.
Lawmakers passed the measure this year to help balance the budget. It requires out-of-state, online retailers to either collect sales tax or send customers an annual notice of how much tax they owe the state.
Retailers would also have to report that to the state.
The marketing association says the law is unconstitutional and that it's an invasion of consumer privacy. It also says it unfairly discriminates against interstate commerce.
The New York-based association represents companies that promote products online as well as by mail and telephone.
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