Concerning consumer protections to promote fair market pricing practices in the state.
Summary
HB26-1012 would expand Colorado consumer protection law in two related ways. First, it would amend existing pricing-disclosure rules for delivery service platforms by requiring a clear comparison, at the point of sale, between the price of goods purchased through an app and the in-store price for the same goods. It also clarifies that a person using a delivery platform, including a grocery store, complies with the law if it makes the required disclosures and does not engage in deceptive, unfair, or unconscionable pricing practices.
Second, the bill creates a new prohibition on charging “unreasonably excessive” prices to “captive consumers” in locations where customers cannot reasonably shop around for ancillary goods or services. The bill identifies captive-consumer settings such as airports, hospitals and emergency rooms, large event venues, large outdoor events, and correctional facilities. A price above the county average for comparable goods or services would create a presumption of an unfair or deceptive trade practice, though the seller could rebut that presumption by showing the price was not unreasonably excessive. The attorney general would be authorized to adopt rules to implement the standard.
Impact
The bill would add a new section to the Colorado Consumer Protection Act and make violations of the captive-consumer pricing ban an unfair or deceptive trade practice with a presumed significant public impact. It would also add a corresponding deceptive trade practice cross-reference so that violating the new captive-consumer provision is enforceable under existing consumer-protection remedies. In practical terms, the measure would affect sellers of ancillary goods and services in captive settings, as well as delivery service platforms and grocery stores that sell goods through online ordering and delivery systems.
Sentiment
The available record suggests the bill was framed as a consumer-protection measure aimed at transparency and preventing price exploitation in settings where consumers have limited choice. The legislative declaration emphasizes that captive consumers cannot shop around and that the new provision would clarify existing law. However, the bill did not advance out of the House Judiciary Committee and was postponed indefinitely, indicating that it did not receive sufficient support to move forward in its introduced form.
Contention
The main point of contention appears to be the bill’s new presumption that prices above the county average for comparable goods or services at captive-consumer locations are unfair or deceptive. That standard could be viewed as too broad or difficult to apply, especially for businesses operating in airports, hospitals, venues, and correctional facilities where costs may differ from ordinary retail settings. The delivery-platform disclosure requirements may also have raised concerns for grocery stores and other sellers about compliance burdens and how to present app-versus-store pricing comparisons.