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DENVER, CO - The House 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’. HB24-1090 passed by a vote of 41 to 21 with every House Republican opposing the effort to rein in unpopular, surprise junk fees.
“Hidden ‘junk fees’ often add up to hundreds of dollars in monthly expenses for Coloradans, so we are taking action to crack 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 the passage of this bill, we’re one step closer to cracking down on junk fees so Coloradans know the upfront cost of products, goods and services.”
“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 this legislation brings us closer to honest pricing so Coloradans can make buying decisions that fit their budget.”
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 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.