Proposed bill would require Colorado companies to disclose hidden mandatory fees
A bill that would require companies to disclose any mandatory fees associated with their product, goods, or services has successfully passed the House Business Affairs and Labor Committee.
Under House Bill 1151, failure to disclose the fees or charges would be considered a deceptive trade practice, subject to enforcement by the Attorney General or a district attorney. Several industries, such as restaurants and breweries, airlines, and car dealerships, are exempt from the requirement.
Bill sponsor Rep. Naquetta Ricks, D- Aurora, emphasized the growing prevalence of “hidden” fees for purchases for concert tickets, hotel reservations, and utility bills. According to Ricks, these fees, averaging an extra $3,200 annually for families, contribute to a 20% increase in consumer prices.
“These junk fees mislead consumers about the true price and prevent them from accurately comparing prices when choosing a product or service,” Ricks said, adding that the stakeholding process is ongoing, and some future changes may be made to the bill moving forward.
While some organizations expressed support for the bill, others remained neutral or called for amendments, citing concerns about its perceived limited scope.
Maggie Gomez of the State Innovation Exchange testified in favor of the bill, saying that 11 other states have similar legislation. Four of those states have banned hidden fees altogether, including California. Colorado used the law passed in California as a template for drafting the 2024 legislation.
“House Bill 1151 is a really good step in the right direction of saving people money and in times like this, every dollar counts for CO families,” Gomez said. “This is a concept everyone can really understand because we’ve all been impacted by the lack of transparency in fees when shopping around for the best price on any good or service.”
Ruthie Barko, representing TechNet, testified that the bill needs to be amended, stating regulations like this should be imposed at a federal level.
“Consumers do deserve transparency in the pricing of goods and services that they purchase,” she said. “Our concern is simply regulatory predictability and clarity for our members in ensuring that this scope does not affect legitimate pricing practices.”
Barko proposed amendments creating exemptions for businesses that provide business-to-business transactions and subscription services as well as surcharges that cannot be quantified until after a customer makes a purchase. Barko also advocated for a later implementation date of June 2025 since companies will be required to spend a significant amount of money on compliance costs.
Several amendments were made to the bill to include new exemptions. The bill passed 7-3 along party lines and was referred to the House Committee of the Whole.
DENVER, CO – MARCH12: The dome can be seen looking straight up from the rotunda at the bottom of the grand staircase inside the Colorado State Capitol on March 12, 2020 in Denver, Colorado. (Photo By Kathryn Scott)
