ICYMI: Bill to Crack Down on ‘Junk Fees’ Passes Senate Committee

HB25-1090 would bring down costs for Coloradans by cracking down on unpopular, surprise ‘junk fees’

DENVER, CO – Legislation sponsored by Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County, and Senator Mike Weissman, D-Aurora, to crack down on ‘junk fees’ and improve price transparency passed the Senate Judiciary Committee yesterday. 

“Unexpected, undisclosed fees cost consumers hundreds of dollars every month,” Cutter said. “These ‘junk fees’ can make informed budgeting decisions feel impossible for consumers. Our legislation will increase transparency for consumers, helping them make informed purchase decisions and ultimately save more of their hard earned money.”

“Opaque or dishonest fees cost Americans up to $90 billion per year, taking an average of $650 annually out of the pockets of working families that could be better spent on household essentials like health care and child care,” Weissman said. “Honest, upfront business owners deserve a fair playing field and consumers deserve price transparency in order to make informed financial decisions.”

HB25-1090 would standardize transparent prices upfront, in many cases prohibiting pricing information from being offered or advertised unless the final total price is disclosed. Additionally, the bill would prohibit the misrepresentation of pricing information, require the purpose of a fee that is not part of the total price to be disclosed, and restrict the fees landlords can charge for utilities and third-party services to ensure tenants are not charged additional fees. 

On January 15, the Federal Trade Commission (FTC) sent a letter to Governor Polis to provide information about the efforts they have made to address ‘junk fees’ and called for the passage of legislation like HB25-1090, that works to combat these unforeseen costs. Shortly thereafter, the FTC and the Colorado Attorney General announced they are taking action against the nation’s largest multi-family rental property managers for using deceptive advertising and failing to disclose recurring fees.

HB25-1090 now moves to the Senate floor for further consideration. Track the bill’s progress HERE.