Colorado’s New Pricing Transparency Law: What Business Owners and Landlords Need to Know
- Miller and Law, P.C.
- 5 days ago
- 5 min read
Introduction
As of January 1, 2026, Colorado’s new pricing transparency statute has gone into effect. The statute, C.R.S. § 6-1-737, sets forth substantial requirements that business owners and, particularly residential landlords, must meet with respect to disclosure of pricing for goods, services and property.
The Broad Requirements to Fully Disclose the “Total Price” of a Good, Service or Property
The statute prohibits any person for offering, displaying, or advertising the amount to be paid for a good, service or property unless the “total price” for the good, service or property is “clearly and conspicuously displayed… as a single number without separating the total price into separate fees, charges or amounts.” The “total price” must include all amounts that must be paid to purchase, enjoy or utilize a good, service or property or amounts that are not reasonably avoidable by the parties. The “total price” does not include governmental charges (taxes or governmentally imposed fees) or shipping charges unless included at the option of the person offering the goods, services or property.
The total price must be displayed more prominently than any other pricing information.
By way of example, if a hotel charges $150.00 per night, plus a mandatory resort fee of $29.00, the total price of $179.00 must be displayed more prominently than any other pricing information. It would not be compliant to list the price of the room as $150.00 plus a $29.00 mandatory fee.
The pricing information must be displayed “clearly and conspicuously,” which means the following:
The disclosure must be made in the same manner as the communication is made:
If a communication is both visual and audible, the disclosure must also be made visually and audibly;
For visual disclosures, it must be distinguishable by size, contract and location and must appear for a length of time, all so that it is easily noticeable, readable and understandable to an ordinary person;
For audible disclosures, it must be delivered in a volume, speed and cadence sufficient for an ordinary person to easily hear and understand it;
Communications made in interactive electronic media, the disclosure must be unavoidable;
The disclosure must not be contradicted by or inconsistent with any other content in the communication.
Specific Industries Impacted By The New Pricing Transparency Law
Food and Beverage:
Food and beverage establishments are deemed compliant with the disclosure requirements as long as they are not using deceptive, unfair or unconscionable acts related to the pricing of goods or services AND if all pricing communications include the price of the good or service and a clear and conspicuous disclosure the percentage of any mandatory service charge and an accurate description of how the mandatory service charge is distributed.
Therefore, a restaurant that charges a mandatory 18% service charge is compliant as long as it clearly and conspicuously discloses that it charges the 18% service charge and that it is distributed 10% to the server and 8% to the kitchen staff.
Residential Landlords:
In addition to the total price disclosure requirements, the statute expressly prohibits residential landlords from charging tenants for certain costs and fees. In particular, residential landlords are prohibited from charging tenants for:
Any utility fee that is more than the actual cost of utilities.
Any fee that increases over 2% in a lease that’s a year or shorter.
Any fee to cover the cost of property taxes.
Any payment processing fee unless a free payment option is provided.
Any late fee for anything other than rent.
Any fee to cover the landlord’s legal responsibilities, including expenses for repairs under the Warranty of Habitability.
Any fee in excess of the cap (2%) on mark-ups for landlord services provided by third-parties charged to tenants under C.R.S. § 38-12-801(3)(a)(VI).
Any fee for something that was not actually provided.
Any fee for common area maintenance.
These are significant changes in what residential landlords may pass on to tenants and there is no provision of the statute that grandfathers in leases that were executed before January 1, 2026.
Landlords should evaluate updating their leases to comply with the prohibited charges that may be passed on to tenants and should update ads, listings and lease agreements to clearly disclose total price information and to disclose all optional fees and charges (e.g. if a tenant can avoid a fee by paying rent by check as opposed to an ACH transfer, that must be disclosed).
Exceptions and Safe Harbors
Unknown Pricing:
If a landlord or business cannot ascertain the total price of for services due to factors beyond that party’s control, specific disclosures must be made. In such cases, the landlord or business must disclose: (i) the factors that will determine the price, (ii) the mandatory fees that are known, and (iii) that the total price of the services may vary. This rule could be used in situations where the tenant or other consumer is required to pay for certain services, the cost of which is unknown, e.g. the cost of a renter’s insurance policy or other third-party services. Similarly, this disclosure may be used by parties that charge for services on an hourly basis where the amount of time spent on providing the services cannot be determined with the initial disclosure of the price of services.
Certain Industries Compliant with Federal Laws:
Certain industries, such as lenders, real estate brokers and delivery network companies are deemed compliant if they are otherwise compliant with Federal statutes applicable to the industry. The specifics related to these industries and the Federal requirements are beyond the scope of this article.
Failure to Comply
Failure to comply with the statute constitutes an unfair business practice under the Colorado Consumer Protection Act and is subject to all penalties under the Act, which may include fines and criminal penalties.
Specifically with respect to violations related to property, the aggrieved person may send a written demand to the alleged violator, demanding reimbursement of any fee, charge, or amount unlawfully imposed and for any actual damages suffered; or to notify the alleged violator of their refusal to pay a prohibited fee, charge, or amount unlawfully imposed. If an alleged violator declines to make full legal tender of all fees, charges, amounts, or damages demanded or refuses to cease charging the aggrieved person within 14 days after receiving the written demand, the person is liable for actual damages plus 18% interest, compounded annually.
Conclusion
The new requirements of the pricing transparency law are complex and in many ways unclear. Each industry is different and will have to navigate different ways to comply. The statute contains many provisions that may apply to any person in Colorado that offers goods, services or property and it is always best that a business consult with a knowledgeable attorney familiar with the statute in implementing changes to its advertising, contracts and leases.
*This article is intended for informational purposes only and should not be construed as legal advice. Individuals involved should consult with legal professionals for specific guidance tailored to their circumstances.
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