Colorado lawmakers are seeking to clamp down on price gouging with a new bill that would make it illegal for businesses to raise costs beyond what is average for certain products.
House Bill 1010, one of the first to be introduced in the 2025 legislative session, would prohibit price gouging of necessities like food and other grocery store items. If a product鈥檚 cost remains steady for 90 days before increasing by 10% or more above its average price, that could be considered price gouging, according to the proposal.
The legislation is being sponsored by first-year Democratic Rep. Yara Zokaie, who represents parts of Larimer County, alongside Boulder County Democrat Kyle Brown.
A mother of three, Zokaie said she understands the pressure rising grocery costs put on working Coloradans.
鈥淚t is hard to get by,鈥� Zokaie said. 鈥淚t鈥檚 an issue that鈥檚 close to me personally, but also around Colorado it鈥檚 an issue that we鈥檙e hearing about and want to do something about.鈥�
Grocery store prices vary across the state depending on different regions鈥� microeconomic factors. In high-cost mountain resort towns, for example, staple grocery store items at Kroger-owned stores can cost slightly more than in Denver, according to a recent analysis by the Summit Daily.
A Kroger spokesperson said increased fuel and labor costs are the main driver for higher prices on the Western Slope, though the analysis shows that prices are higher in areas with less competition.
Still, pledges to take on price gouging have become a rallying cry for politicians across the country as they confront a host of cost-of-living issues, particularly since the COVID-19 pandemic. Vice President Kamala Harris, in her failed 2024 White House bid, rolled out her own national price gouging ban.
Economists have debated whether price gouging is a culprit for rising costs which they say have largely been driven by inflation and supply chain issues as a result of the pandemic.
A March 2024 report from the Federal Trade Commission, however, points to 鈥渆levated profit levels鈥� for grocery retailers that 鈥渃asts doubt on assertions that rising prices at the grocery store are simply moving in lockstep with retailers鈥� own rising costs.鈥�
鈥淚 think there鈥檚 a lot of reasons why costs go up, why prices go up,鈥� Zokaie said. 鈥淭o the extent that corporate greed is one of those factors, which I believe it is 鈥� we want to hold that accountable.鈥�
Zokaie鈥檚 proposal builds off legislation passed in 2020 that empowered the Colorado Attorney General鈥檚 Office to investigate claims and levy fines worth up to $20,000 in most cases for businesses that engaged in price gouging during a state of emergency.
If passed, House Bill 1010 would expand the scope to include allegations of price gouging during any time, with a focus on essential grocery store items like food, medical supplies and hygiene products. It does not, however, outline specific penalties for offenders.
Zokaie said the business community has 鈥渃ome to the table鈥� to work with her on the legislation.
Cynthia Eveleth-Havens, chief strategy officer for the Colorado Chamber of Commerce, which represents business groups across the state, said the chamber has not yet taken a position on the bill.
鈥淏ut we are concerned about the unintended consequences of any legislation creating additional regulatory burdens on business,鈥� Eveleth-Havens said in a statement. 鈥淲e鈥檙e in the process of reviewing the bill and getting feedback from our members.鈥�
Aurora Democrat Mike Weissman, who is sponsoring the bill in the Senate, said the legislation鈥檚 intent is not to target businesses that are increasing costs to meet the demands of inflation.
鈥淲e want to make sure we鈥檙e allowing honest businesses, which are most businesses, go about their day-to-day operations,鈥� Weissman said, adding the legislation is meant to give the Attorney General鈥檚 Office 鈥渕ore tools to be on the lookout to help people make ends meet and to take action against economically-unjustified or abusive prices.鈥�
The bill does not have a Republican sponsor in either the House or Senate, but Weissman hopes it will garner bipartisan support.
Zokaie said she 鈥渉as not heard much fierce opposition from the other side of the aisle.鈥�
鈥淚 am hopeful that we鈥檙e all going to be able to come together on this,鈥� she said.
Democrats currently hold a 43-22 majority in the House and a 23-12 majority in the Senate. A House Republica