This spring, the Colorado Legislature passed HB 25-1090, a new consumer-protection law that sets standards for how prices are communicated to Colorado consumers.
Background
The law targets “drip pricing,” the practice of advertising a low price and adding last-minute “service,” “convenience,” “processing,” “cleaning,” “administrative,” and other “junk fees.” Although primarily motivated by concerns about landlords charging these fees in addition to advertised rent, the disclosure requirements affect almost all transactions in Colorado.
Most Coloradans will be affected and should notice changes in price communication after January 1, 2026, when the law takes effect.
Who is affected?
The law applies to anyone in Colorado who offers, displays, or advertises pricing information for goods, services, or property, with very few exceptions.
There are no broad exceptions for small businesses, commercial landlords, single-property owners, nonprofits, individuals, occasional sellers, healthcare providers, or other categories historically given relief from regulatory burdens. The few exceptions that exist are designed to prevent conflict with federal price-transparency laws. For example, lenders subject to the Truth-in-Lending Act need not separately comply with Colorado’s requirements if they already comply with federal law.
As a result, all Colorado businesses (especially commercial and residential landlords) should be aware of these requirements and prepare to comply if not exempt.
What is required?
Beginning January 1, 2026, it is unlawful in Colorado to offer, display, or advertise pricing information without clearly and conspicuously disclosing the maximum total (“total price”).
Other parts of HB 25-1090 outlaw specific “junk fees” and markups charged by residential landlords and prohibit landlords from including those fees in their written rental agreements.
Total Price
To ensure an advertised price reflects the real cost to the consumer, the “total price” must be disclosed clearly and conspicuously as a single number. It must include (A) all costs required to purchase, enjoy, or utilize a good, service, or property, and (B) any costs not reasonably avoidable.
A key element of making accurate price disclosures is distinguishing mandatory fees from optional ones. A fee is only optional if it is “reasonably avoidable” within the actual transaction. A customer’s ability to shop elsewhere does not make a fee “reasonably avoidable.” Avoidability requires real consumer choice—such as choosing expedited shipping, avoiding a late fee by paying on time, or choosing to incur a credit card fee where cash is readily accepted.
Because pricing structures differ across industries, each business must review its own fees to determine what must be included in the total price. The following examples use a membership price model to show how these disclosures could vary.
Example 1:
If a membership costs $9.99 per month and can be canceled anytime, the “total price” is $9.99 per month.
Example 2:
If the same membership requires a $10 key card, the “total price” is $19.99. Advertising “$9.99” or “$9.99 plus a one-time $10 fee” would both be deceptive because the first number conceals the key card fee, and the second number itemizes, which is not allowed.
If a mandatory fee will later be charged to disable the key card, that fee must also be included unless a reasonably available free alternative (like returning the card in person) exists.
Example 3:
If the membership costs $9.99 per month but requires a six-month minimum commitment, the “total price” is $59.94. Advertising “$9.99” would again be deceptive.
These examples show that “total prices” can vary widely between similar companies, making price shopping harder for consumers. Companies may also raise initial prices to cover costs previously collected through fees, resulting in higher total prices overall.
Other Pricing Information
Ironically, the law defines “total price” as the price before taxes, optional shipping, bag fees, and other charges consumers often expect to be included in a “total.” These excluded charges must be disclosed separately as “other pricing information,” which must identify:
1. The specific item for which the fee is charged,
2. The recipient of the charge, and
3. Whether it is refundable.
This information must be disclosed “upon” offering or advertising a price and before a person consents to pay.
Because sellers may not initially know whether certain charges apply (e.g., public improvement fees, bag fees, retail delivery fees), disclosing exact numbers is often impossible. “Upon” likely means “after” in this context, though inconsistent usage of that word elsewhere in the law creates ambiguity. Until the Attorney General provides guidance, sellers should disclose this information as early as possible and always before the customer agrees to pay.
Clear and Conspicuous
All pricing information must be “clear and conspicuous,” defined as “easily noticeable and understandable,” and measured by eight mandatory standards:
1. Disclosed in the same medium as the pricing communication.
2. Disclosed in every medium used for the communication.
3. Visual disclosures must be distinguishable in size, contrast, location, duration, etc.
4. Audible disclosures must be easily heard and understood.
5. Electronic-medium disclosures must be unavoidable.
6. Written in understandable diction and syntax in each language used.
7. Not contradicted or mitigated by anything else in the communication.
8. Repeated in each medium through which it is received.
More Prominent
The “total price” must be presented more prominently than any other pricing information. The law does not offer solutions for customer confusion that may arise from the “total price” (before tax) appearing more prominently than the actual after-tax total.
Because of the risk of violating the “most prominent” standard when providing a cost breakdown, some companies may shift to less transparent, less itemized pricing and simply increase the unit price to replace fee revenue.
Safe Harbors and Special Rules
The law also contains safe harbors and special rules, which will be covered separately.
Conclusion
Except for banning certain landlord “junk fees,” the law does not create price caps or outlaw fee-based structures. Mandatory fees are only unlawful if not disclosed up front in the total price.
Listing the total as a single number is intended to ensure transparency and prevent surprise costs. Businesses may still provide itemizations, but the “total price” must always appear clearly, conspicuously, as a single number, and more prominently than other pricing information.
Colorado’s new price-transparency rules will require most businesses to adjust how they communicate pricing. If you’d like help evaluating your current fees, updating your disclosures, or preparing a compliant pricing model, our team is available to walk you through next steps.
