JOINT RELEASE: Colorado Democrats to Crack Down on Junk Fees, Price Gouging, and Rent Algorithms to Save Coloradans Money
DENVER, CO - Colorado Democrats today highlighted three bills that would bring down costs for Coloradans by cracking down on price gouging for necessities, ‘junk fees’ that add hidden costs, and rent algorithms that drive up housing prices.
“These bills get at the heart of the concerns Coloradans bring to their kitchen table. As lawmakers, we are not putting paychecks first or saving coloradans money unless we take on the greedy corporations who openly brag about lining their pockets with record profits while regular people struggle to get by. Well we are here to say enough is enough,” said Rep. Javier Mabrey, D-Denver, sponsor of HB25-1004 and cosponsor of HB25-1090. “As an eviction defense attorney, I’ve seen how algorithms can increase rents by thousands of dollars a year while price gouging and hidden fees drive up costs on housing and everyday items. Colorado Democrats are taking action to push back against corporate greed and strengthen consumer protections to save people money. Our legislation will require transparency about the true cost of products and crack down on unfair practices that inflate rent and grocery costs so working people can hold on to more of their hard-earned money."
Lawmakers today unveiled new legislation that will be introduced later today to crack down on junk fees.
“Pest control, garbage collection, and payment method fees can add hundreds of dollars in monthly costs for renters, yet they are often not disclosed upfront, especially in rental agreements,” said Rep. Emily Sirota, D-Denver, sponsor of HB25-1090. “Too many Coloradans are blindsided by these ‘junk fees’ and only find out about these mandatory fees when they’re checking out online or paying their first rental payment. I’m proud to announce that we’re introducing this bill after years of hard work to make prices more transparent, crack down on excessive fees, and save Coloradans money.”
“This bill will save Coloradans money by requiring transparency, allowing consumers to compare prices, shop around, and make informed decisions about how to spend their hard-earned money,” said Sen. Lisa Cutter, D-Jefferson County, sponsor of HB25-1090. “It's not okay for consumers to expect to pay one price, only to be hit with hidden fees at checkout. Addressing deceptive pricing practices protects consumers, builds trust, and puts money back in Coloradans’ pockets.”
“Tackling the issue of ‘junk fees’ has been a top priority for me at the Capitol, and I am proud to sponsor this legislation to improve price transparency and help small businesses compete against major corporations,” said Rep. Naquetta Ricks, D-Aurora, sponsor of HB25-1090. “This year, we’re cracking down on arbitrary ‘junk fees’ that inflate prices far exceeding the price as it was advertised. This bill will help both consumers and small businesses, saving Coloradans hundreds of dollars a month and making business owners who act in good faith more competitive in the market.”
“COVID reminded us that sometimes corporate bad actors hide behind economic disruptions to jack up prices and rip off consumers,” said Sen. Mike Weissman, D-Aurora, sponsor of HB25-1090 and HB25-1010. “The years since COVID have illustrated that Coloradans deserve transparency about their purchases and protections beyond just declared disaster emergencies. That’s why I’m proud to sponsor legislation to protect working Coloradans by cracking down on surprise ‘junk fees’ that add hidden costs and empowering the Colorado Attorney General to take action against corporations who hike up prices beyond what economic realities justify.”
HB25-1090 would improve transparency in pricing and save Coloradans money by:
Prohibiting pricing information for a good, service, of property being offered, displayed, or advertised unless the total price is disclosed, with the exception of a government or shipping charge,
Prohibiting the misrepresentation of the nature or purpose of pricing information,
Requiring the nature or purpose of pricing information to be disclosed for a good, service, or property that is not part of the total price, and
Prohibiting a landlord for requiring a tenant to pay certain fees, charges, or amounts.
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. The FTC and the Colorado Attorney General have 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.
HB25-1010 would prohibit price gouging of goods or services necessary for the health, safety, and welfare of Coloradans, like groceries and toiletries. In this bill, price gouging is defined as a price increase by 10 percent or above the average cost of the product or good within 90 days.
“Corporations have used inflation and market conditions as an excuse to increase profits for food, diapers, and other household necessities that are essential in Coloradans' day-to-day life,” said Rep. Yara Zokaie, D-Fort Collins, sponsor of HB25-1010. “We must prioritize people over profits. Corporate greed is hurting families in every corner of our state, which is why I’m sponsoring this bill to safeguard our families and ensure our groceries remain affordable.”
“Everyone has noticed that grocery prices have gone up while inflation has cooled, which is deeply affecting Colorado families who are just trying to provide everyday necessities for their families,” said Rep. Kyle Brown, D-Louisville, sponsor of HB25-1010. “Food, diapers, and toothpaste are non-negotiables on the shopping list, and it’s immoral for bad actors to take advantage of rising costs due to inflation to significantly increase their profits and stock prices. Colorado Democrats will not stand by as bad actors profiteer off hardworking Coloradans and drive up costs for families.”
A 2024 Federal Trade Commission report stated that the three largest grocers accelerated and distorted the negative effects associated with supply chain disruption due to the COVID-19 pandemic. Food prices have increased by 28 percent since 2019, outpacing inflation.
HB25-1004 would save Coloradans money by regulating how algorithms are used in establishing rent prices, including prohibiting consciously parallel pricing coordination between two or more landlords. Rent algorithms have been shown to add an average of $130 per month to rental rates in the Metro Denver area.
“There is clear evidence that corporations are using algorithmic pricing schemes and collusion to jack up rent prices and line their pockets while hardworking people struggle to find affordable places to live,” said Rep. Steven Woodrow, D-Denver, sponsor of HB25-1004. “Our communities sent us to the Capitol to solve the most pressing issues, and that means cracking down on egregious strategies that manipulate the market to charge renters more. This bill aims to prevent corporations from unjustly colluding to increase their profits on the backs of hardworking Coloradans that need every dollar in their paycheck to pay for groceries, medication, and child care.”
“Coloradans are burdened by high rents, which make it harder to make ends meet and puts families at risk of losing their housing,” said Sen. Julie Gonzales, D-Denver, sponsor of HB25-1004. “This bill will put an end to the algorithms that corporations use to artificially increase rents, allowing us to create a more equitable market and ensure more Colorado families can afford a safe place to call home.”
“Colorado families are tired of paying an arm and a leg for rent, and third party companies selling algorithmic price setting products that enable corporate landlords to form a monopolistic trust are making the problem worse, to the tune of $1,300 per year,” said Sen. Nick Hinrichsen, D-Pueblo, sponsor of HB25-1004. “We’re working hard this session to protect renters and address Colorado’s housing crisis. This bill will prevent landlords from using systems that lead to price fixing, and will help save Coloradans money on housing.”
A recent report found that coordinated rents from algorithmic pricing increase rent prices by $136 per month for Denver renters.
In January 2025, Colorado joined a federal lawsuit to sue six of the largest landlords in the US for participating in algorithmic pricing schemes that harm renters. Colorado Attorney General Phil Weiser also joined a federal lawsuit in August 2024 against RealPage, Inc. for allegedly using illegal agreements with landlords to carry out a price-fixing scheme that has cost Coloradans millions of dollars in rent payments.