Colorado’s New Deceptive Pricing Practices Law: What It Means for Businesses in 2026
Starting January 1, 2026, Colorado will enforce a new statewide standard aimed at curbing hidden fees and ensuring clearer pricing for consumers. Known officially as HB 25-1090: Protections Against Deceptive Pricing Practices, this new law represents a major step in transparency and consumer protection — but it also brings important compliance requirements for businesses operating in the state.
Why the Law Was Passed
Colorado lawmakers crafted this law out of growing concern that many consumers were being misled by pricing that appeared lower than the actual amount they would pay at checkout. Practices like “drip pricing” — where advertised prices omit mandatory fees or charges added later — can mislead buyers and erode trust. The legislature specifically cited the need to clarify how prices are set and communicated, protect consumers from unfair pricing, and address deceptive practices in a range of industries.
What the Law Prohibits and Requires
The new law mandates that businesses and others offering goods, services, or property in Colorado must follow straightforward rules about how prices are presented:
- Clear “Total Price” Disclosure
Businesses may not offer, display, or advertise pricing information unless they disclose the maximum total price a consumer could pay — excluding government taxes or optional shipping charges — in a clear and conspicuous manner. This total must include all mandatory fees and charges baked into the transaction. This requirement applies broadly to most sellers — whether online, in print advertising, on menus, in providing professional services (such as accountants or engineers), or at point-of-sale systems.
- Accurate Pricing Representation
It is unlawful to misrepresent the nature or purpose of any pricing information. For example, a fee can’t be described in a misleading way that obscures that it is required, nor can businesses bury mandatory charges in fine print or in ways that are not easily noticeable by the average consumer.
- Disclosure of Non-Total Price Items
If certain components of an offer — like variable service charges, open-ended matters billed by the hour, optional add-ons, or factors that could affect price — are not included in the total price, businesses must disclose clearly and conspicuously what they are, how they’re calculated, and why they’re not included in the total price. Think: BOLD AND CAPITALIZED TEXT.
- Landlord Fee Limits
For landlords and property managers, the law goes further: they may not require tenants to pay certain fees, charges, or amounts that are prohibited by the act or not appropriately disclosed in writing. This includes charges bundled into rental agreements without proper notice.
Exceptions & Special Cases
Some specific types of sellers have tailored compliance paths:
- Food & beverage establishments can include mandatory service charges in prices if they disclose the amount, its purpose, and how it’s distributed.
- Businesses governed by pre-existing federal price transparency laws — such as broadband providers — can comply by aligning with those standards.
- Businesses that genuinely cannot determine a total price upfront (e.g., variable services) may provide a transparent explanation of how prices are calculated. For example, a lawyer’s or CPA’s engagement letter may have to explain that the final cost cannot be determined up front, and explain why.
Penalties for Non-Compliance
Violations of the law are treated as deceptive, unfair, or unconscionable practices under the Colorado Consumer Protection Act. Consequences can include:
- Civil penalties imposed by the Attorney General or local district attorneys under Colorado’s consumer protection framework.
- Consumer-initiated actions: an aggrieved party (like a tenant or customer) can send a written demand to a violator for reimbursement of unlawful fees, actual damages, and more. If unresolved within 14 days, the business may owe the consumer actual damages plus 18% interest, and potentially further penalties.
- Additional civil damages or remedies available under law or equity.
This framework ensures that enforcement isn’t limited to government action — consumers themselves have a tool to seek remedy for deceptive pricing. Note that a consumer can file suit without first providing the written demand, or other pre-suit notice. This could be a new area for aggressive plaintiffs’ attorneys.
Steps Businesses Should Take to Comply
To prepare for the law’s effective date, businesses that sell goods, services, or property in Colorado should take these practical steps:
✔️ Review Pricing and Advertising Practices
Audit all price listings — online, printed, and in promotional materials — to confirm that the “total price” is clearly shown and includes all mandatory fees.
✔️ Update Point-of-Sale and Digital Displays
Ensure checkout screens, menus, and digital listings disclose the full price without relying on separate pop-ups or optional disclosures that consumers can easily overlook.
✔️ Train Staff on New Requirements
Educate sales, marketing, and customer service teams on how to explain pricing clearly to consumers and recognize deceptive pricing practices.
✔️ Revise Contracts and Lease Agreements
Landlords in particular should examine residential leases and rental ads to eliminate prohibited fees and enhance transparency around all charges.
✔️ Consult Legal Counsel
Given the law’s breadth and potential liabilities, businesses should consider getting legal review to confirm that pricing disclosures meet the statute’s standards.
Conclusion
Colorado’s deceptive pricing law reflects a growing national push for transparency in price communication. As the state joins other jurisdictions cracking down on so-called “junk fees” and hidden costs, businesses that proactively adapt their pricing practices will not only avoid penalties but strengthen consumer trust — ultimately improving competitiveness in the marketplace. If you have questions, please do not hesitate to contact Spitz Legal Counsel LLC at 720-575-0440, or mark@spitzlegalcounsel.com.