Colorado Democrats Propose Legislation to Combat Price Gouging and Surveillance Pricing

Colorado Democrats have introduced a series of bills aimed at addressing rising consumer prices attributed to corporate practices, particularly focusing on "surveillance pricing" and price gouging in captive consumer environments. The legislative package includes three key proposals: banning the use of personal data for price setting, requiring price transparency for delivery services, and prohibiting wholesalers from charging small businesses more than larger retailers.

Are stadium food and beer prices too high? Colorado lawmakers unveil bills targeting costs.

The first bill targets "surveillance pricing," a practice where companies use consumers' personal data—such as browsing history and location—to set prices. This bill aims to prevent corporations from exploiting consumer data to charge higher prices based on individual purchasing behavior. Rep. Javier Mabrey, a sponsor of the bill, emphasized the need for transparency and fairness in pricing, stating, “If the supply side knows how much the demand side will pay, right, then the system is rigged.”

JOINT RELEASE: Colorado Democrats to Lower Costs, Support Small Businesses — Colorado Senate Democrats

The second proposal, House Bill 1012, mandates that delivery services like DoorDash and Instacart display in-store prices alongside delivery prices. This measure seeks to protect consumers from inflated prices in situations where they have limited purchasing options, such as at airports or sporting events. Rep. Yara Zokaie highlighted the exploitation of captive consumers, stating, “When people are forced to pay more simply because they’re trapped, that isn’t the free market. It’s exploitation.”

Surveillance pricing ban among affordability bills proposed by Colorado Democrats

The third bill aims to level the playing field for small businesses by prohibiting wholesalers from charging them more than larger retailers. This legislation is intended to ensure that small businesses can compete fairly against corporate giants like Walmart and Amazon.

JOINT RELEASE: Colorado Democrats to Lower Costs, Support Small Businesses — Colorado Senate Democrats

Democratic sponsors of the bills argue that these measures are essential for protecting consumers and small businesses from corporate monopolies. “We’re taking bold steps to make Colorado more affordable,” said Rep. Jennifer Bacon. However, the proposals face significant opposition from various business groups, including the Colorado Bankers Association and the Colorado Hospital Association, which argue that the bills could lead to unintended consequences, such as reduced service quality and higher operational costs.

Surveillance, captive-audience and wholesale pricing are in Colorado Democrats’ cost-of-living crosshairs

Republican lawmakers have expressed concerns about the potential overreach of these regulations. Rep. Chris Richardson warned that imposing price ceilings could lead to reduced supply and increased demand, ultimately harming consumers. He stated, “A modest price premium is not price gouging. It is what allows these businesses to stay open at all.”

Surveillance pricing ban among affordability bills proposed by Colorado Democrats

The proposed legislation has drawn criticism from multiple sectors. Business groups argue that the bills could create new operational challenges and legal costs without delivering significant benefits to consumers. The Colorado Chamber of Commerce has labeled the proposals as overreaching, while delivery service companies like DoorDash and Uber are seeking amendments to mitigate their impact.

Are stadium food and beer prices too high? Colorado lawmakers unveil bills targeting costs.

The bills are expected to be formally introduced in the coming weeks, with the potential for heated debates in the Colorado legislature. Given the Democratic majority, the proposals could pass along party lines, but significant opposition from business interests and moderate Democrats, including Governor Jared Polis, may complicate their progress.

Are stadium food and beer prices too high? Colorado lawmakers unveil bills targeting costs.

• “Fighting for affordability means exercising the courage to hold wealth and power accountable and to make sure that everyone, regardless of how much money they have, plays by the same set of rules,” — Rep. Javier Mabrey, D-Denver

Surveillance pricing ban among affordability bills proposed by Colorado Democrats

• “When people are forced to pay more, simply because they’re trapped, that isn’t the free market. It’s exploitation.” — Rep. Yara Zokaie, D-Fort Collins

Are stadium food and beer prices too high? Colorado lawmakers unveil bills targeting costs.

• “Large corporations stack the deck against hardworking Coloradans far more than most of us are aware,” — Sen. Mike Weissman, D-Aurora

JOINT RELEASE: Colorado Democrats to Lower Costs, Support Small Businesses — Colorado Senate Democrats

• “The problem is not a lack of legal authority.” — Rep. Chris Richardson, R-Elbert County

Surveillance, captive-audience and wholesale pricing are in Colorado Democrats’ cost-of-living crosshairs