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DENVER, CO - Governor Jared Polis today signed legislation into law that brings down costs for Coloradans by cracking down on corporate price gouging for everyday necessities like groceries and toiletries.
“Price gouging hurts hardworking Coloradans and mom-and-pop businesses, which is why I sponsored this law that will hold bad actors accountable,” said Rep. Yara Zokaie, D-Fort Collins. “No one should have to choose between putting food on the table and paying rent, and as a mom to three young children, I have personally felt the pressure facing so many of our Colorado families. With this bill being signed into law today, Colorado Democrats are standing up against corporate price gouging to reduce the cost of everyday necessities.”
“This bill is about putting public welfare and consumer protection ahead of corporate greed,” said Senator Mike Weissman, D-Aurora. “Time and time again, we have seen bad actors use disasters as an excuse to raise prices on necessities and line their own pockets. It’s time for us to step in and ensure that Colorado families can purchase the things they need – like groceries and diapers – at prices they can afford during times of crisis.”
“With corporate bad actors driving prices higher on groceries and everyday necessities, Colorado Democrats are taking action to stop price gouging and save Coloradans money,” said Rep. Kyle Brown, D-Louisville. “While the COVID-19 pandemic, inflation and supply chain issues have impacted prices, bad-acting corporations have taken advantage of these factors to jack up prices just to increase their profits. While Republicans in the legislature sided with wealthy corporations, our majority passed this law to help tackle the rising cost of living, put an end to corporate price gouging and make Colorado a more affordable place to live for all.”
HB25-1010 prohibits price gouging of goods or services necessary for the health, safety, and welfare of Coloradans, like groceries and toiletries, during a declared emergency. In this law, price gouging is defined as a price increase of 10 percent or above the average cost of the product or good that is not attributable to seasonal pricing. Necessities include goods and services essential for the health, safety, and welfare of the public, like groceries and toiletries.
A 2024 Federal Trade Commission report stated that the three largest grocers accelerated and distorted the negative effects associated with supply chain disruption due to the COVID-19 pandemic.
Colorado Democrats passed a 2024 law, also sponsored by Rep. Brown and Sen. Weissman, to prevent price gouging on rent after a natural disaster. The law was inspired after rents skyrocketed for Coloradans who lost their homes after the Marshall Fire, pricing vulnerable Coloradans out of their communities. Another law created the Prescription Drug Affordability Board to limit Big Pharma price gouging of life-saving prescription drugs, helping lower out-of-pocket prescription drug costs.