Colorado legislators target hidden junk fees with new consumer protection bill

The House Judiciary Committee of the Colorado Legislature convened on February 19, 2025, to address the pressing issue of "junk fees" that have increasingly burdened consumers in the state. The meeting focused on House Bill 251090, which aims to enhance price transparency by requiring companies to disclose mandatory fees upfront when advertising prices for goods, services, and rental properties.

The discussion began with Representative Emily Sirota highlighting the financial strain that hidden fees impose on Colorado residents. She emphasized that these fees, often labeled as processing, convenience, or service fees, are not disclosed until after a purchase is made, leading to unexpected costs for consumers. Sirota noted that some renters have reported being unaware of these fees until after they had already committed to a rental agreement, resulting in significant financial losses.

The bill seeks to ensure that all mandatory fees are included in the total advertised price, allowing consumers to make informed decisions. Sirota pointed out that this legislation is a response to widespread complaints from constituents about hidden fees, which have become a bipartisan concern among Coloradans.

Co-sponsor Representative Ricks elaborated on the specifics of the bill, stating that it would classify the failure to disclose mandatory fees as a deceptive trade practice. This change aims to protect consumers from misleading pricing tactics that obscure the true cost of products and services. Ricks also mentioned that the average family could be paying nearly $3,300 annually in hidden fees, which exacerbates financial burdens and undermines housing affordability.

Throughout the meeting, committee members raised questions regarding the implications of the bill for various industries, including short-term rentals and auto dealers, which are already subject to specific advertising regulations. Ricks assured members that extensive stakeholder engagement had taken place to address concerns and clarify how the bill would interact with existing laws.

The committee also discussed amendments to the bill that would clarify fee structures for landlords, ensuring that fees related to property taxes or payment processing are not imposed on tenants. The sponsors emphasized that while the bill promotes transparency, it does not impose price caps on fees, allowing businesses to set their own pricing as long as they are upfront about it.

As the meeting progressed, the committee moved towards witness testimony, indicating a continued commitment to gathering input from various stakeholders on the proposed legislation. The overall sentiment among committee members was one of support for the bill, recognizing the need for greater transparency in pricing practices to protect consumers in Colorado.

In conclusion, the House Judiciary Committee's meeting underscored the importance of addressing junk fees and enhancing price transparency for consumers. The proposed legislation aims to empower Coloradans by ensuring they are fully informed about the costs associated with their purchases, ultimately fostering a fairer marketplace. Further discussions and amendments are expected as the bill moves forward in the legislative process.