JOINT RELEASE: Signed! New Law Cracks Down on ‘Junk Fees’ to Save Coloradans Money
DENVER, CO - Governor Jared Polis today signed a bill into law to bring down costs and improve price transparency for Coloradans by cracking down on ‘junk fees’.
“Hidden ‘junk fees’ often add up to hundreds of dollars in monthly expenses for Coloradans, and this new law cracks down on these surprise costs to save people money,” said Rep. Emily Sirota, D-Denver. “Whatever the ‘junk fee’ is disguised as, the goal is to hike up prices and drain money out of the pockets of hardworking Coloradans to increase corporate profits. With this bill being signed into law today, we’re putting an end to junk fees so Coloradans know the upfront cost of products, goods and services.”
“Unexpected, undisclosed fees cost consumers hundreds of dollars every month,” said Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County. “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.”
“It is estimated that ‘junk fees’ add up to $90 billion per year in our country, costing households more than $650 annually that could be better spent on groceries, health care, and child care,” said Rep. Naquetta Ricks, D-Aurora. “Junk fees are often not disclosed until a consumer is ready to check out or after they’ve paid a non-refundable security deposit, which means Coloradans end up paying higher prices than they are expecting. Addressing junk fees in our state has been one of my biggest priorities, and I’m proud of this new law to ensure honest pricing so Coloradans can make buying decisions that fit their budget.”
“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,” said Sen. Mike Weissman, D-Aurora. “Honest, upfront business owners deserve a fair playing field and consumers deserve price transparency in order to make informed financial decisions.”
HB25-1090 standardizes transparent prices upfront, in many cases prohibiting pricing information from being offered or advertised unless the final total price is disclosed. Additionally, the law prohibits the misrepresentation of pricing information, requires the purpose of a fee that is not part of the total price to be disclosed, and restricts the fees landlords can charge for utilities and third-party services to ensure tenants are not charged additional fees. The law includes specific exemptions for these requirements for certain industries and scenarios.
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, which 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.