House Bill 25-1090 Introduced

A Bill for an Act

• Page 1, Line 101Concerning protections against deceptive pricing practices.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Section 2 of the bill:

• Prohibits a person from offering, displaying, or advertising pricing information for a good, service, or property unless the person discloses the maximum total (total price) of all amounts that a person may pay for the good, service, or property, not including a government charge or shipping charge (total price disclosure requirement);
• Prohibits a person from misrepresenting the nature and purpose of pricing information for a good, service, or property;
• Requires a person to disclose the nature and purpose of pricing information for a good, service, or property that is not part of the total price; and
• Prohibits a landlord from requiring a tenant to pay certain fees, charges, or amounts.
• Is a food and beverage service establishment that:
• Includes a disclosure in the total price for a good or service the amount of any mandatory service charge and how the mandatory service charge is distributed; and
• Distributes any mandatory service charge exclusively to nonmanagerial employees in accordance with applicable laws; or
• Can demonstrate that the person is governed by and compliant with applicable federal law regarding pricing transparency.
• 3 times the actual damages incurred; or
• At least $100 to no more than $1,000 per person per violation.

A person does not violate the total price disclosure requirement if the person does not use deceptive, unfair, and unconscionable acts or practices related to the pricing of goods, services, or property and if the person:

A violation of the above prohibitions and requirement (violation) constitutes a deceptive, unfair, and unconscionable act or practice.

Section 2 also, along with any other remedies available by law or in equity, allows a person aggrieved by a violation to bring a civil action and send a written demand for the violation. If a person declines to make full legal tender of all fees, charges, amounts, or damages demanded or refuses to cease charging the aggrieved person within 14 days after receiving the written demand, the person is liable for the greater of:

Current law prohibits a written rental agreement from including a provision requiring a tenant to pay a markup or fee for a service for which the landlord is billed by a third party. Section 3 changes that provision to prohibit the inclusion of a provision in a written rental agreement that requires a tenant to pay a fee that is a violation.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  Legislative declaration. (1)  The general assembly

• Page 2, Line 3finds and declares that the purposes and policies of this act are to:

• Page 3, Line 1(a)  Clarify and reiterate the law governing the setting and

• Page 3, Line 2communication of prices in Colorado, including landlord obligations

• Page 3, Line 3regarding setting and communicating the price of rent and other costs to residential tenants; and

• Page 3, Line 4(b)  Protect people, including tenants, who experience deceptive,

• Page 3, Line 5unfair, or unconscionable pricing of goods, services, or property in the state.

• Page 3, Line 6(2)  Therefore, the general assembly further declares that this act

• Page 3, Line 7should be broadly interpreted to achieve its intended purposes and policies.

• Page 3, Line 8SECTION 2.  In Colorado Revised Statutes, add 6-1-737 as follows:

• Page 3, Line 96-1-737.  Requirement to disclose certain pricing information

• Page 3, Line 10- landlords and tenants - remedies - definitions. (1)  As used in this section, unless the context otherwise requires:

• Page 3, Line 11(a)  "Ancillary good, service, or property" means any

• Page 3, Line 12additional good, service, or property offered to a person as part of the same transaction.

• Page 3, Line 13(b)  "Clearly and conspicuously" or "clear and

• Page 3, Line 14conspicuous" means that a required disclosure is easily

• Page 3, Line 15noticeable and understandable, including in all of the following ways:

• Page 3, Line 16(I)  For a communication that is only visual or only

• Page 3, Line 17audible, the disclosure must be made through the same means by which the communication is presented;

• Page 3, Line 18(II)  For a communication that is both visual and audible,

• Page 3, Line 19such as a television advertisement, the disclosure must be made

• Page 4, Line 1simultaneously in both the visual and audible portions of the

• Page 4, Line 2communication, even if the communication requiring the disclosure is made through only visual or audible means;

• Page 4, Line 3(III)  For a visual disclosure, the disclosure must be

• Page 4, Line 4distinguishable by its size, contrast, and location; the length of

• Page 4, Line 5time for which it appears; and other characteristics from

• Page 4, Line 6accompanying text or other visual elements so that it is easily noticed, read, and understood;

• Page 4, Line 7(IV)  For an audible disclosure, including by telephone or

• Page 4, Line 8streaming video, the disclosure must be delivered in a volume,

• Page 4, Line 9speed, and cadence sufficient for ordinary persons to easily hear and understand it;

• Page 4, Line 10(V)  In any communication using an interactive electronic

• Page 4, Line 11medium, such as the internet or software, the disclosure must be unavoidable;

• Page 4, Line 12(VI)  The disclosure uses diction and syntax

• Page 4, Line 13understandable to ordinary persons and must appear in each

• Page 4, Line 14language in which the representation requiring the disclosure appears;

• Page 4, Line 15(VII)  The disclosure must not be contradicted or

• Page 4, Line 16mitigated by, or inconsistent with, anything else in the communication requiring the disclosure; and

• Page 4, Line 17(VIII)  The disclosure must comply with the requirements

• Page 4, Line 18of this subsection (1)(b) for each medium through which it is

• Page 4, Line 19received by a person, including an electronic device or face-to-face communication.

• Page 4, Line 20(c)  "Common areas" has the meaning set forth in section 38-12-502 (2).

• Page 5, Line 1(d) (I)  "Dwelling unit" has the meaning set forth in section 38-12-502 (3).

• Page 5, Line 2(II)  "Dwelling unit" does not include common areas.

• (e)  "Food and beverage service establishment" means:

• Page 5, Line 3(I)  A retail food establishment, as defined in section 25-4-1602 (14);

• Page 5, Line 4(II)  An alcoholic beverages drinking places industry, as defined in section 39-26-105 (1.3)(a)(I);

• Page 5, Line 5(III)  A brew pub, distillery pub, or vintner's restaurant, as those terms are defined in section 44-3-103; or

• Page 5, Line 6(IV)  A retail portion of a brewery, distillery, or winery,

• Page 5, Line 7as those terms are defined in section 44-3-103, that sells beverages for consumption on the premises.

• Page 5, Line 8(f)  "Government charge" means a fee or charge imposed on

• Page 5, Line 9consumers by a federal, state, or local government agency, unit, or department.

• Page 5, Line 10(g)  "Landlord" has the meaning set forth in section 38-12-502 (5).

• Page 5, Line 11(h)  "Mandatory service charge" means a mandatory fee,

• Page 5, Line 12charge, or amount that a food and beverage service

• Page 5, Line 13establishment adds to a customer's, guest's, or patron's bill to

• Page 5, Line 14pay nonmanagerial employees additional amounts exceeding

• Page 5, Line 15wages that the food and beverage service establishment owes under applicable minimum wage laws.

• Page 5, Line 16(i)  "Pricing information" means information relating to an

• Page 5, Line 17amount a person may pay.

• Page 6, Line 1(j)  "Rental agreement" has the meaning set forth in section 38-12-502 (7).

• Page 6, Line 2(k)  "Shipping charge" means a fee or charge that reflects

• Page 6, Line 3the actual cost that a person incurs to send physical goods to a person through the mail, including a private mail service.

• Page 6, Line 4(l)  "Tenant" has the meaning set forth in section 38-12-502 (9).

• Page 6, Line 5(m) (I)  "Total price" means the maximum total of all

• Page 6, Line 6amounts, including fees and charges, that a person must pay for

• Page 6, Line 7a good, service, or property, including any mandatory ancillary good, service, or property.

• Page 6, Line 8(II)  "Total price" includes all amounts that:

• Page 6, Line 9(A)  Must be paid to purchase, enjoy, or utilize a good, service, or property;

• Page 6, Line 10(B)  Are not reasonably avoidable by the person; or

• Page 6, Line 11(C)  A reasonable person would expect to be included in the purchase of a good, service, or property.

• Page 6, Line 12(III)  "Total price" does not include a government charge or shipping charge.

• Page 6, Line 13(2) (a)  A person shall not offer, display, or advertise an

• Page 6, Line 14amount a person may pay for a good, service, or property unless

• Page 6, Line 15the person offering, displaying, or advertising the good, service,

• Page 6, Line 16or property clearly and conspicuously discloses the total price

• Page 6, Line 17for the good, service, or property as a single number without

• Page 6, Line 18separating the total price into separate fees, charges, or

• Page 6, Line 19amounts. The total price for the good, service, or property must

• Page 6, Line 20be disclosed more prominently than any other pricing information for the good, service, or property.

• Page 7, Line 1(b)  Notwithstanding any provision of this section to the

• Page 7, Line 2contrary, a person is compliant with subsection (2)(a) of this

• Page 7, Line 3section if the person does not use deceptive, unfair, and

• Page 7, Line 4unconscionable acts or practices related to the pricing of goods, services, or property and if the person:

• Page 7, Line 5(I)  Is a food and beverage service establishment that:

• Page 7, Line 6(A)  In every offer, display, or advertisement for the

• Page 7, Line 7purchase of a good or service that includes pricing information,

• Page 7, Line 8includes in the total price of the good or service being offered,

• Page 7, Line 9displayed, or advertised a clear and conspicuous disclosure of

• Page 7, Line 10the percentage or amount of any mandatory service charge and

• Page 7, Line 11an accurate description of how the mandatory service charge is distributed; and

• Page 7, Line 12(B)  Distributes the full amount of any mandatory service

• Page 7, Line 13charges exclusively to nonmanagerial employees and in

• Page 7, Line 14accordance with applicable wage and hour laws for the purpose

• Page 7, Line 15of paying employees additional amounts in excess of wages owed under applicable minimum wage laws; or

• Page 7, Line 16(II)  Can demonstrate that the person is governed by and

• Page 7, Line 17compliant with applicable federal law regarding pricing transparency.

• Page 7, Line 18(3) (a)  A person shall not misrepresent the nature and

• Page 7, Line 19purpose of pricing information for a good, service, or property, including:

• Page 7, Line 20(I)  The refundability of an amount charged;

• Page 7, Line 21(II)  The identity of a good, service, or property for which an amount is charged;

• Page 8, Line 1(III)  The recipient of an amount charged for the good, service, or property; and

• Page 8, Line 2(IV)  The actual cost of the price of the good, service, or property for which an amount is charged.

• Page 8, Line 3(b)  Upon offering, displaying, or advertising a good,

• Page 8, Line 4service, or property and before a person consents to pay for the

• Page 8, Line 5good, service, or property, the person offering, displaying, or

• Page 8, Line 6advertising the good, service, or property shall clearly and

• Page 8, Line 7conspicuously disclose the nature and purpose of pricing

• Page 8, Line 8information for the good, service, or property that is not part of the total price for the good, service, or property, including:

• Page 8, Line 9(I)  The refundability of an amount charged for the good, service, or property;

• Page 8, Line 10(II)  The identity of a good, service, or property for which an amount is charged; and

• Page 8, Line 11(III)  The recipient of an amount charged for the good, service, or property.

• Page 8, Line 12(4)  A landlord or the landlord's agent shall not require a tenant to pay a fee, charge, or amount:

• Page 8, Line 13(a)  Related to the provision of utilities that is above the

• Page 8, Line 14amount charged by the utility provider for service to the tenant's dwelling unit;

• Page 8, Line 15(b)  That increases by more than two percent over the

• Page 8, Line 16course of a rental agreement of one year or less, except for the cost of utilities provided to the tenant's dwelling unit;

• Page 8, Line 17(c)  Related to the payment of property taxes or other landlord obligations;

• Page 9, Line 1(d)  Related to the processing of rent or other payments;

• Page 9, Line 2(e)  Related to the overdue payment of a fee, charge, or amount that is not rent;

• Page 9, Line 3(f)  For a good, service, or property necessary to comply

• Page 9, Line 4with the responsibilities or obligations of a landlord or the

• Page 9, Line 5landlord's agent, including the landlord's responsibility to

• Page 9, Line 6provide a habitable living environment in accordance with section 38-12-503;

• Page 9, Line 7(g)  Above the total price of the good, service, or property for which an amount is charged;

• Page 9, Line 8(h)  For a good, service, or property not actually provided;

• Page 9, Line 9(i)  For the maintenance of common areas; or

• Page 9, Line 10(j)  That violates this section or is otherwise unenforceable.

• Page 9, Line 11(5) (a)  A person that violates any of the requirements or

• Page 9, Line 12prohibitions of this section engages in a deceptive, unfair, and unconscionable act or practice.

• Page 9, Line 13(b) (I)  In addition to any remedies otherwise provided by law or in equity:

• Page 9, Line 14(A)  A person aggrieved by a violation of this section may

• Page 9, Line 15bring a civil action against the alleged violator to restrain

• Page 9, Line 16further violations and to recover actual damages, costs, and reasonable attorney fees; and

• Page 9, Line 17(B)  Pursuant to a good faith belief that a violation of any

• Page 9, Line 18provision of this section has occurred, a person aggrieved by a

• Page 10, Line 1violation may send a written demand to the alleged violator

• Page 10, Line 2for reimbursement of any fees, charges, or amounts in violation

• Page 10, Line 3of this section paid by the aggrieved person or a group of

• Page 10, Line 4similarly situated aggrieved persons, for the actual damages

• Page 10, Line 5suffered, and for the alleged violator to cease violating this

• Page 10, Line 6section. The aggrieved person may notify the alleged violator

• Page 10, Line 7of their refusal to pay any fees, charges, or amounts that violate this section.

• Page 10, Line 8(II)  If a person declines to make full legal tender of all

• Page 10, Line 9fees, charges, amounts, or actual damages demanded or refuses

• Page 10, Line 10to cease charging the aggrieved person and those similarly

• Page 10, Line 11situated the fees, charges, or amounts in violation of this

• Page 10, Line 12section within fourteen days after the receipt of a written

• Page 10, Line 13demand sent pursuant to subsection (5)(b)(I)(B) of this section,

• Page 10, Line 14in addition to any other damages available by law or in equity, the person is liable for the greater of:

• Page 10, Line 15(A)  Three times the actual damages incurred; or

• Page 10, Line 16(B)  At least one hundred dollars to no more than one thousand dollars per person per violation.

• Page 10, Line 17(c) (I)  A person aggrieved by a violation of this section

• Page 10, Line 18does not need to send a written demand, or satisfy any other

• Page 10, Line 19pre-suit requirement, before asserting a claim based on a violation of this section.

• Page 10, Line 20(II)  Nothing in this section limits remedies available elsewhere by law or in equity.

• Page 10, Line 21SECTION 3.  In Colorado Revised Statutes, 38-12-801, amend

• Page 10, Line 22(3)(a)(VI) as follows:

• Page 11, Line 138-12-801.  Written rental agreement - prohibited clauses -

• Page 11, Line 2copy - tenant - applicability - definitions. (3) (a)  A written rental agreement must not include:

• Page 11, Line 3(VI)  A provision that requires a tenant to pay a markup or fee for

• Page 11, Line 4a service for which the landlord is billed by a third party; except that a

• Page 11, Line 5written rental agreement may include a provision that requires a tenant to

• Page 11, Line 6pay either a markup or fee in an amount that does not exceed two percent

• Page 11, Line 7of the amount that the landlord was billed or a markup or fee in an

• Page 11, Line 8amount that does not exceed a total of ten dollars per month, but not both.

• Page 11, Line 9This subsection (3)(a)(VI) does not preclude a prevailing party from

• Page 11, Line 10recovering an amount equal to any reasonable attorney fees awarded by

• Page 11, Line 11a court pursuant to subsection (3)(a)(II) of this section. fee, charge, or amount that violates any part of section 6-1-737;

• Page 11, Line 12SECTION 4.  Act subject to petition - effective date -

• Page 11, Line 13applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 11, Line 14the expiration of the ninety-day period after final adjournment of the

• Page 11, Line 15general assembly; except that, if a referendum petition is filed pursuant

• Page 11, Line 16to section 1 (3) of article V of the state constitution against this act or an

• Page 11, Line 17item, section, or part of this act within such period, then the act, item,

• Page 11, Line 18section, or part will not take effect unless approved by the people at the

• Page 11, Line 19general election to be held in November 2026 and, in such case, will take

• Page 11, Line 20effect on the date of the official declaration of the vote thereon by the governor.

• Page 11, Line 21(2)  This act applies to conduct occurring on or after the applicable effective date of this act.