Committee hearings at the State Capitol are gearing up and many bills are being considered and debated for the first time. One bill that has its first hearing next week is HB 1010, which the Colorado Chamber recently took an “opposed” position on.
Colorado currently has laws on the books against price gouging during disaster or emergency periods. This bill expands both the definition and scope of “price gouging.” It removes the requirement that there must be a disaster declaration, meaning the rules against price gouging would apply year-round. It also changes what constitutes price gouging, applying it to all necessities that include goods and services necessary for the health, safety and welfare of consumers or the general public. The bill defines price gouging as an increase of at least 10% the average price of a product within a 90 day period.
The Colorado Chamber’s Government Affairs Council discussed the bill in its meeting this week. Members are concerned about the overly broad scope of the legislation and the impact that could have on a wide range of industries and companies that sell products or services.
There are many factors that go into the pricing of a product. Sellers do not have control over the prices of products they purchase from suppliers, which can cause prices to fluctuate depending on market conditions. There are also many market forces at play, from seasonal changes to global supply and demand, that are drivers of the costs consumers pay. Punitive action against businesses for forces outside of their control is not an effective way of lowering inflation.
The Chamber took an opposed position on the bill on Tuesday. HB 1010 will be heard in the House Business Affairs and Labor Committee on February 6.