A handful of new laws take effect in Colorado on January 1, 2026, but none may be more impactful to our clients than an addition to the Colorado Consumer Protection Act. The new law, codified as C.R.S. § 6-1-737, is intended to prevent businesses from charging consumers for “junk fees” and requires disclosure of the total price of a transaction at the start of the interaction between a business and its customer. While this new law may not affect sales of consumer goods at a set price, it will require explicit disclosures from professionals that provide services at an hourly rate, such as accountants, plumbers, electricians, and other contractors, where the final price is hard to predict because it depends on how much time is involved.
While this new law … will require explicit disclosures from professionals that provide services at an hourly rate, such as accountants, plumbers, electricians, and other contractors, where the final price is hard to predict because it depends on how much time is involved.
The new law requires every business in Colorado to “clearly and conspicuously” display the total price of any goods, services, or products offered for sale or lease. The total price provided to the consumer must include every required fee or charge except taxes or fees imposed by a governmental entity and optional shipping charges. The law defines “clearly and conspicuously” as: (i) visual disclosures that are easily noticeable and readable; (ii) audible disclosures that must be understandable when spoken; and (iii) interactive or online disclosures that require affirmative acknowledgement prior to purchase.
The new law further requires that any optional charges must be disclosed prior to consummating the transaction and must disclose:
- What the charge is for;
- Whether the charge is refundable;
- What good or service the charge covers; and
- Who receives the payment.
This addition to the Consumer Protection Act applies to every business in the State of Colorado and is certain to provide fertile ground for litigation between consumers and businesses. If you have any questions regarding this new law and how it may affect your business, please do not hesitate to contact us at (720) 399-0123.
