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Bill addressing 'junk fees' heads to governor's desk

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Elyse Apel
(The Center Square)

A bill addressing so-called “junk fees” is headed to Governor Jared Polis’ desk for his signature after successfully passing both the state House and Senate.

No Republicans voted to support the legislation, which received unanimous approval from Democrats.

House Bill 1090, titled “Protections Against Deceptive Pricing Practices,” requires sellers to clearly disclose the total price of goods and services, and restricts which fees landlords may charge. It is part of a broader package of bills from Democrats, all looking to address the state’s housing prices.

Representative Emily Sirota, D-Denver, sponsored the bill in the House. She argued that it is an important step to end “deceptive junk fees” that add hidden costs.

“People should know the real price of what we're buying up front,” Sirota said on social media upon the bill’s passage. “Renters are being gouged ... When this bill becomes law, it will be a huge win for Colorado consumers.”

Democrats say the Colorado bill will save consumers 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.
  • Prohibiting the misrepresentation of pricing information, including requiring food and beverage service establishments disclose any mandatory service charges.
  • Requiring 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.
  • Prohibiting a landlord from requiring a tenant to pay certain fees, charges or amounts, including restricting utility and third-party service fees.

The bill would take effect January 1, 2026. Violating its provisions is a deceptive trade practice, allowing for civil action against the accused.

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“This bill takes a strong stand against opaque or dishonest fees that cost Americans up to $90 billion per year,” said state Senator Mike Weissman, D-Aurora. “This legislation is a win for transparency, fairness and consumer protection.”

Republicans argue the bill is hypocritical for exempting government charges.

“The Colorado government is responsible for the most deceptive ‘fees’ (hidden taxes) on businesses and consumers that all essentially fall down to the consumer,” Representative Ryan Armagost, R-Berthoud, posted on social media. “Why is the Colorado government not held to the same standard of transparency? ... We need to stop making ‘rules for thee and not for me.’ ”

Other states around the nation have taken similar measures to address the issue of hidden fees, with California and Minnesota already passing legislation.

The Colorado Attorney General's office has also taken up the issue, filing a lawsuit against apartment rental company Greystar in January for charging “junk fees.”

The Federal Trade Commission joined in the lawsuit, also sending Polis a letter pushing for the state to pass “comprehensive legislation” to address the fees.

It is unclear when Polis might take action on the bill.