A “For Rent” sign is seen in Denver’s Capitol Hill neighborhood on April 5, 2024. (Quentin Young/Colorado Newsline)
A group of progressive Colorado Democrats in the Legislature is running a series of bills to address rising costs and undisclosed fees they say are a symptom of corporate greed.
Three bills would prohibit certain rent-setting computer algorithms, require disclosure of various fees across industries and ban price gouging on necessities.
“As lawmakers, we have a duty to save our constituents money, and we cannot do that effectively unless we take on these greedy corporations who are openly bragging about lining their pockets with record profits while regular people are struggling to get by,” Rep. Javier Mabrey, a Denver Democrat, said at a press conference Thursday highlighting the bills.
“We’re putting a flag in the ground and saying that we are on the side of working people. We will prioritize their livelihoods over these record corporate profits,” he said.
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Mabrey is sponsoring two of the bills related to rent-setting algorithms and hidden fees.
House Bill 25-1090 would require the disclosure of so-called “junk fees,” or extra charges on top of the base price of a good or service. They include a valet trash charge at an apartment, community amenity fee, credit card processing fee, and pest control fee. Often, they are not apparent before someone makes a purchase or gets a lease, so the total bill turns out to be more than expected.
“For some, these surprise changes (in price) are frustrating. For others, they can mean the difference between making rent and putting food on the table,” said Sen. Lisa Cutter, a Littleton Democrat who sponsored the bill. “These hidden charges don’t just hurt individual consumers. They undermine trust and prevent a fair, competitive marketplace where people can compare prices and make informed decisions.”
The bill, which will also be sponsored by Democratic Reps. Emily Sirota of Denver and Naquetta Ricks of Aurora and Democratic Sen. Mike Weissman of Aurora, will require upfront disclosure of those types of fees in their advertised price, with a specific focus on the rental industry. It would make non-disclosure a deceptive trade practice.
Last week, Attorney General Phil Weiser and the Federal Trade Commission filed a lawsuit against the rental company Greystar over its junk fee practices.
$136 more per month
House Bill 25-1004 was introduced on the first day of the legislative session and would regulate rent-setting computer algorithms, which use data to suggest optimal rent prices to landlords. A report from 2024 that has since been removed from the White House website found that Denver renters who live in buildings that rely on such algorithms pay an average of $136 more per month.
A similar bill died in the final days of session last year. This time, however, the makeup of the Legislature is different and there is more public scrutiny on algorithm companies like RealPage. Weiser joined a multi-state, federal lawsuit last summer against RealPage, and that lawsuit now includes six of the country’s largest landlords.
“While the important litigation continues to wind its way through the courts, it is another month that Colorado renters, and Denver renters in particular, will have to continue to suffer under this unfair practice,” Denver Democratic Sen. Julie Gonzales said.
The bill is sponsored by Gonzales, Mabrey, Sen. Nick Hinrichsen of Pueblo and Rep. Steven Woodrow of Denver. It is facing opposition from the Colorado Association of Realtors, the Colorado Housing Coalition and the Colorado Mortgage Lenders Association.
House Bill 25-1010 would prohibit price gouging on “essential” goods like groceries and toiletry items. It would define price gouging as an increase of at least 10% on the average price of the product within 90 days. The attorney general or district attorney would be able to bring action against the seller under Colorado’s consumer protection laws.
“While inflation and supply chain disruptions are real causes of price increases, they have also become a convenient smoke screen for bad actors who use these challenges as an excuse,” said bill sponsor Rep. Yara Zokaie, a Fort Collins Democrat.
Most states, including Colorado, have price gouging laws during disaster or emergency periods.
Zokaie is sponsoring the bill alongside Weissman and Rep. Kyle Brown, a Louisville Democrat. The bill is opposed by the Colorado Competitive Council, the Colorado Banker Association and various local chambers of commerce.
Colorado Republicans have also proposed a slate of legislation to reduce costs, but their ideas rely on repealing various fees and regulations the Legislature has passed in recent years.
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