House Bill 25-1010 Preamended

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.

• This Unofficial Version Includes Committee

• Amendments Not Yet Adopted on Second Reading

• 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), (2) introductory portion, (3), (5)

• Page 2, Line 4introductory portion, (5)(a), and (5)(k); and add (2.5), (3.5), (4.5), (5)(a.5), (5)(l.5), and (5)(l.7) as follows:

• Page 2, Line 56-1-730.  Price gouging prohibited - deceptive trade practice -

• Page 2, Line 6rules - legislative declaration - definitions. (1)  The general assembly: hereby:

• Page 2, Line 7(a)  Finds and determines that:

• Page 2, Line 8(I)  Under ordinary conditions, the pricing of consumer goods and

• Page 2, Line 9services generally is best left to the marketplace; except that, when a

• Page 2, Line 10declared disaster results in or abnormal market disruptions of the

• Page 2, Line 11market result in price increases or when a seller unfairly or

• Page 2, Line 12unconscionably raises the price of necessities, the public interest

• Page 2, Line 13requires that any unfair and unconscionable increase in the price of consumer goods or services be discouraged; and

• Page 2, Line 14(2)  A person engages in an unfair and unconscionable act or

• Page 2, Line 15practice when, during an abnormal market disruption, the person

• Page 2, Line 16charges a price so excessive as to amount to price gouging in the

• Page 2, Line 17sale or offer for sale of necessities or when, during a disaster

• Page 2, Line 18period and within the designated area, the person charges a price so excessive as to amount to price gouging in:

• Page 2, Line 19(2.5)  A person engages in an unfair and unconscionable

• Page 2, Line 20act or practice when the person charges prices for necessities

• Page 3, Line 1that are so excessive as to amount to price gouging. Increasing

• Page 3, Line 2the price of a necessity by ten percent or more above the

• Page 3, Line 3average price that the necessity cost during the ninety days

• Page 3, Line 4preceding the price increase is presumed to be engaging in the unfair and unconscionable act or practice of price gouging.

• Page 3, Line 5(3)  A price shall not be considered unreasonably excessive if the

• Page 3, Line 6seller can prove that due to the events that gave rise to the disaster declaration, the price charged by the seller is directly attributable to:

• Page 3, Line 7(a)  Additional costs imposed by the seller's supplier or suppliers

• Page 3, Line 8or other direct costs of providing the good or service sold or offered for sale by the seller; or

• Page 3, Line 9(b)  Seasonal pricing.

• (3.5)  This section does not apply to:

• Page 3, Line 10(a)  A short-term rental;

• Page 3, Line 11(b)  A public utility regulated by the public utilities

• Page 3, Line 12commission pursuant to title 40; except that this section does

• Page 3, Line 13apply to a business that the public utilities commission regulates pursuant to article 10.1 of title 40; or

• Page 3, Line 14(c)  The sale of real property.

• Page 3, Line 15(4.5)  The attorney general may adopt rules as necessary to implement this section.

• Page 3, Line 16(5)  As used in this section, unless the context otherwise requires:

• Page 3, Line 17(a)  "Building materials" means lumber, construction tools,

• Page 3, Line 18windows, and other materials used in the repair or reconstruction of a

• Page 3, Line 19structure or other property "Abnormal market disruption" means any

• Page 3, Line 20change in the market, whether actual or imminently

• Page 4, Line 1threatened, that results from a disaster, failure or shortage of

• Page 4, Line 2electric power or other source of energy, civil disorder, war,

• Page 4, Line 3terrorist attack, military action, national or local emergency,

• Page 4, Line 4public health emergency, drug shortage, excessive market

• Page 4, Line 5consolidation, trade disruption, inflation, or any other cause of

• Page 4, Line 6an atypical disruption in the market that a person may exploit

• Page 4, Line 7to manipulate prices in a manner that does not reflect the basic forces of supply and demand.

• Page 4, Line 8(a.5)  "Building materials" means lumber, construction

• Page 4, Line 9tools, windows, and other materials used in the repair or reconstruction of a structure or other property.

• Page 4, Line 10(k)  "Necessities" means goods and services that are necessary for

• Page 4, Line 11human or animal survival during a disaster period the health, safety, and welfare of consumers or of the general public.

• Page 4, Line 12(l.5)  "Seasonal pricing" means pricing that is consistent

• Page 4, Line 13with historical data showing the prices that were charged during the same season in the previous three years.

• Page 4, Line 14(l.7) "short-term rental" has the meaning set forth in section 30-15-401 (1)(s.5)(III).

• Page 4, Line 15SECTION 2.  Act subject to petition - effective date -

• Page 4, Line 16applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 4, Line 17the expiration of the ninety-day period after final adjournment of the

• Page 4, Line 18general assembly; except that, if a referendum petition is filed pursuant

• Page 4, Line 19to section 1 (3) of article V of the state constitution against this act or an

• Page 4, Line 20item, section, or part of this act within such period, then the act, item,

• Page 4, Line 21section, or part will not take effect unless approved by the people at the

• Page 4, Line 22general election to be held in November 2026 and, in such case, will take

• Page 5, Line 1effect on the date of the official declaration of the vote thereon by the governor.

• Page 5, Line 2(2)  This act applies to conduct occurring on or after the applicable effective date of this act.