What Colorado’s New Hidden Fee Law Really Means for Business
Hidden fees not only cost money but also damage trust.
Colorado’s new Deceptive Pricing Practices Law officially takes effect. Starting January 1, 2026, every business in the state will be required to display the actual price of its products. This means no more surprise fees, confusing add-ons, or small print that alters the total after the sale.
Lawmakers created the law to shield consumers from what they label as “junk fees.” But if you run a business, this isn’t just about following rules. It’s about maintaining credibility.
What the Law Really Says
House Bill 25-1090 requires every business in Colorado to clearly disclose the total price of a good, service, or property before a customer agrees to purchase. That total must include all mandatory fees. It needs to be easily visible, easy to understand, and impossible to overlook.
Restaurants must show service charges. Landlords are required to combine rent and fees into one total. Delivery apps must display all costs upfront. Professional service firms, such as lawyers and accountants, need to clearly explain how their prices are determined and whether they are subject to change.
The Colorado Deceptive Pricing Law is designed to hold businesses accountable for how they communicate prices, fees, and service charges to customers across every industry. For most business owners, that entails reviewing every invoice, ad, website, and contract they handle.
Read the full text of Colorado’s House Bill 25-1090
See how Colorado’s efforts align with the Federal Trade Commission’s crackdown on junk fees.
The Real Risk Behind Hidden Fees
Violations are serious. The law regards them as deceptive trade practices under the Colorado Consumer Protection Act. This grants the Attorney General authority to investigate and impose fines on offenders. It also allows customers to sue directly for refunds and attorney fees.
If you collect an illegal fee and don’t return it within fourteen days, you owe the full amount plus 18 percent interest per year until it’s paid. There’s no warning period. A single mistake can lead to court.
The real danger isn’t in the fine print of the law. It’s the exposure that results from being accused of concealing the truth.
The Exposure Problem
When a customer feels misled, it’s no longer just a private matter; it becomes a public concern. It becomes public as soon as they post about it.
I’ve seen it happen. A $20 service fee, a “processing” charge, or a surprise billing adjustment triggers a review, a complaint, or a viral post. Suddenly, the issue isn’t about money. It’s about reputation.
Once your integrity is questioned, you’re no longer negotiating about refunds. You’re fighting to restore trust. Under the Colorado Deceptive Pricing Law, even one unclear or misleading fee can trigger both financial and reputational exposure, turning a minor billing issue into a full-scale business problem.
This law compels every business owner to confront a tricky question. Do your pricing and billing practices prioritize transparency or convenience? If it’s the latter, you’re vulnerable.
Learn how ignoring brand awareness creates long-term exposure risks for businesses.
See how a single reputational mistake can cost a business more than money.
Which Businesses Are Most Affected
Landlords and property managers
You must list rent and all mandatory fees as a single total price. You cannot add “administrative” or “maintenance” fees unless they reflect actual costs. If you markup utilities, the limit is two percent or ten dollars per month.
Restaurants and service businesses
You must clearly disclose mandatory service charges, facility fees, or add-ons in every language you use. If you operate an online store or app, your disclosures need to be unavoidable. No links. No fine print.
Professional services
Lawyers, consultants, and other professionals are not exempt from this requirement. The law recognizes that some work varies in terms of time or complexity. You can still bill hourly or on retainer, but you must disclose how pricing works and what factors cause it to change.
If you advertise a flat-fee service, the displayed number must reflect the full price. “$995 plus $100 document fee” is no longer permitted. It must say “$1,095 total.”
Transparency now applies to each invoice and engagement letter.
Why Transparency Builds Trust
At first glance, this appears to be just another regulatory burden. But it’s actually a reset in how trust is established in business.
People are fed up with surprises about the total. Companies that take action first will build trust. Those who delay will be forced to adapt under pressure.
Transparency is now a leadership requirement, not just a marketing tactic.
When customers trust you with pricing, they also trust you on all other matters. That trust fosters loyalty, referrals, and reputation.
This is the same principle I teach in crisis management. Every moment of exposure, whether financial, legal, or public, is a test of trust. You either pass or pay for it.
Learn how the Colorado Attorney General enforces consumer protection laws.
How to Prepare for Colorado’s 2026 Pricing Law
Audit your pricing
List every fee, charge, and add-on you apply. If you wouldn’t feel comfortable explaining it to a customer in plain language, remove or rewrite it.
Rewrite your contracts and marketing materials.
Show the total price clearly. Explain how it’s calculated. Avoid vague labels like “processing” or “service.”
Train your team
Everyone quoting a price should understand how the new law works. Consistency is important.
Document compliance
Keep dated copies of your disclosures, contracts, and website updates to ensure accurate records. If you ever face a claim, proof of transparency will matter more than good intentions.
Turning Compliance into Advantage
This is where business owners can change the story.
When you remove hidden fees, you send a clear message. You’re showing your customers, “What you see is what you get.” That message spreads quickly. It sets you apart from competitors who still rely on fine print and add-ons to increase revenue. Businesses that embrace the Colorado Deceptive Pricing Law early will stand out as leaders in transparency and customer trust long before enforcement begins.
The companies that act now will not only avoid lawsuits but also build trust and gain attention by doing the right thing before it’s required.
The Real Lesson
The Deceptive Pricing Law is about more than just receipts. It’s about integrity. It serves as a reminder that the line between legal exposure and brand exposure is a fine one.
If you’re in business, you’re in the trust business. The more transparent you are, the less risk you face.
The law may have initially been a consumer protection measure, but it serves more as a blueprint for reputation management.
Final Thought
Colorado has set a clear boundary. Businesses that conceal fees cross it.
This isn’t the moment to wait for enforcement. It’s the moment to lead.
To safeguard your business, reputation, and brand, start with your pricing. Be transparent. Be fair. Make it known.
Because in today’s market, clarity isn’t just about compliance. Clarity is a form of currency.
