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DENVER, CO - The House Judiciary Committee today passed a bill sponsored by Representatives Emily Sirota and Naquetta Ricks that would bring down costs for Coloradans by cracking down on ‘junk fees’. HB25-1090 passed by a vote of 7-4.
“It’s becoming increasingly common for Coloradans to see undisclosed fees tacked onto their final bill when they’re checking out or making their first rental payments, and these ‘junk fees’ sometimes add hundreds of dollars to the final cost,” said Rep. Emily Sirota, D-Denver. “This isn’t fair to consumers who are trying to accurately budget or to honest businesses who are upfront about their prices. I’m bringing this bill to make pricing more transparent, saving Coloradans money and allowing them to make more informed financial decisions.”
“Too often, bad-acting businesses use ‘junk fees’ to discretely jack up their prices at the last minute, blindsiding consumers and competitively pushing honest business owners out of the market,” said Rep. Naquetta Ricks, D-Aurora. “These costs can add up quickly and are difficult and costly to back out of when the ‘junk fees’ are attached to one’s monthly rent. I’m proud to continue the work to crack down on ‘junk fees’ to save hardworking Coloradans money and make honest business owners more competitive.”
HB25-1090 would improve transparency in pricing and save Coloradans money by:
Prohibiting pricing information for a good, service, or property being offered, displayed, or advertised unless the total price is disclosed, with the exception of a government or shipping charge, third-party fees, and utilities,
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
Restricting fees landlords can charge for utilities and third-party services if they comply with legal limits, ensuring that 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. 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.