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 2 SECTION 1. In Colorado Revised Statutes, 24-33.5-703, amend (3) as follows:
Page 2, Line 324-33.5-703. Definitions. As used in this part 7, unless the context otherwise requires:
Page 2, Line 4(3) "Disaster" means the occurrence or imminent threat of
Page 2, Line 5widespread or severe damage, injury, or loss of life or property resulting
Page 2, Line 6from any natural cause or cause of human origin, including but not
Page 2, Line 7limited to fire; flood; earthquake; wind; storm; wave action; hazardous
Page 2, Line 8substance incident; oil spill or other water contamination requiring
Page 2, Line 9emergency action to avert danger or damage; volcanic activity; epidemic;
Page 2, Line 10air pollution; blight; drought; infestation; explosion; civil disturbance;
Page 2, Line 11hostile military or paramilitary action; a market disruption, including
Page 2, Line 12a trade disruption or an atypical disruption in the market that
Page 2, Line 13affects production, distribution, or consumption of a product or
Page 2, Line 14service; or a condition of riot, insurrection, or invasion existing in the state or in any county, city, town, or district in the state.
Page 2, Line 15SECTION 2. In Colorado Revised Statutes, 6-1-730, add (2.5) and (3.5)as follows:
Page 2, Line 166-1-730. Price gouging during declared disaster prohibited -
Page 2, Line 17deceptive trade practice - legislative declaration - definitions. (2.5) If
Page 2, Line 18the governor declares a disaster emergency pursuant to section
Page 2, Line 1924-33.5-704 (4) and the disaster emergency declaration cites to
Page 2, Line 20this subsection (2.5), a price increase in the sale or offer for sale
Page 3, Line 1of any good or service listed in subsection (2) of this section
Page 3, Line 2amounts to price gouging if the price has increased by more than
Page 3, Line 3ten percent of the price at which the seller sold or offered for
Page 3, Line 4sale similar goods or services before the disaster began or, if
Page 3, Line 5the seller did not sell or offer for sale similar goods or
Page 3, Line 6services before the disaster began, the price at which a similarly
Page 3, Line 7situated seller sold or offered for sale similar goods or services before the disaster began.
Page 3, Line 8(3.5) For the purposes of subsection (2.5) of this section, a
Page 3, Line 9price shall not be considered unreasonably excessive if the
Page 3, Line 10seller can prove that the price charged by the seller is directly attributable to seasonal pricing.
Page 3, Line 11SECTION 3. Act subject to petition - effective date -
Page 3, Line 12applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 3, Line 13the expiration of the ninety-day period after final adjournment of the
Page 3, Line 14general assembly; except that, if a referendum petition is filed pursuant
Page 3, Line 15to section 1 (3) of article V of the state constitution against this act or an
Page 3, Line 16item, section, or part of this act within such period, then the act, item,
Page 3, Line 17section, or part will not take effect unless approved by the people at the
Page 3, Line 18general election to be held in November 2026 and, in such case, will take
Page 3, Line 19effect on the date of the official declaration of the vote thereon by the governor.
Page 3, Line 20(2) This act applies to conduct occurring on or after the applicable effective date of this act.