House Bill 25-1010 Introduced

A Bill for an Act

• Page 1, Line 101Concerning a prohibition against engaging in price gouging.

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.)

Under current law, a person engages in an unfair and unconscionable act or practice in violation of consumer protection laws (unfair act) if the person engages in price gouging during a declared disaster. The bill adds engaging in price gouging in the sale of necessities as an unfair act and creates a presumption that, if the price of a necessity is increased by 10% or more above the average price that the necessity cost during the 90 days preceding the price increase, the price increase amounts to price gouging.

The bill also defines "necessities" as goods or services that are necessary for the health, safety, and welfare of consumers or of the general public.

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

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 6-1-730, amend (1)

• Page 2, Line 3introductory portion, (1)(a)(I), (3), (5) introductory portion, and (5)(k); and add (2.5) and (4.5) as follows:

• Page 2, Line 46-1-730.  Price gouging prohibited - deceptive trade practice -

• Page 2, Line 5rules - legislative declaration - definitions. (1)  The general assembly: hereby:

• Page 2, Line 6(a)  Finds and determines that:

• Page 2, Line 7(I)  Under ordinary conditions, the pricing of consumer goods and

• Page 2, Line 8services generally is best left to the marketplace; except that, when a

• Page 2, Line 9declared disaster results in abnormal disruptions of the market or a

• Page 2, Line 10seller unfairly or unconscionably raises the price of necessities,

• Page 2, Line 11the public interest requires that any unfair and unconscionable increase in the price of consumer goods or services be discouraged; and

• Page 2, Line 12(2.5)  A person engages in an unfair and unconscionable

• Page 2, Line 13act or practice when the person charges prices for necessities

• Page 2, Line 14that are so excessive as to amount to price gouging. Increasing

• Page 2, Line 15the price of a necessity by ten percent or more above the

• Page 2, Line 16average price that the necessity cost during the ninety days

• Page 2, Line 17preceding the price increase is presumed to be engaging in the unfair and unconscionable act or practice of price gouging.

• Page 2, Line 18(3)  A price shall not be considered unreasonably excessive if the

• Page 2, Line 19seller can prove that due to the events that gave rise to the disaster

• Page 2, Line 20declaration, the price charged by the seller is directly attributable to

• Page 3, Line 1additional costs imposed by the seller's supplier or suppliers or other

• Page 3, Line 2direct costs of providing the good or service sold or offered for sale by the seller.

• Page 3, Line 3(4.5)  The attorney general may adopt rules as necessary to implement this section.

• Page 3, Line 4(5)  As used in this section, unless the context otherwise requires:

• Page 3, Line 5(k)  "Necessities" means goods and services that are necessary for

• Page 3, Line 6human or animal survival during a disaster period the health, safety, and welfare of consumers or of the general public.

• Page 3, Line 7SECTION 2.  Act subject to petition - effective date -

• Page 3, Line 8applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 3, Line 9the expiration of the ninety-day period after final adjournment of the

• Page 3, Line 10general assembly; except that, if a referendum petition is filed pursuant

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

• Page 3, Line 12item, section, or part of this act within such period, then the act, item,

• Page 3, Line 13section, or part will not take effect unless approved by the people at the

• Page 3, Line 14general election to be held in November 2026 and, in such case, will take

• Page 3, Line 15effect on the date of the official declaration of the vote thereon by the governor.

• Page 3, Line 16(2)  This act applies to conduct occurring on or after the applicable effective date of this act.