Colorado General Assembly finalizes provisions on deceptive trade practices

On April 4, 2025, the Colorado State Legislature introduced Senate Bill 86, a significant piece of legislation aimed at enhancing consumer protection against deceptive trade practices. The bill seeks to address growing concerns about unfair business practices by establishing clearer definitions and penalties for violations.

One of the key provisions of Senate Bill 86 is the addition of a new section to the Colorado Revised Statutes, which defines deceptive trade practices more comprehensively. Specifically, it introduces penalties for individuals or businesses that knowingly or recklessly violate the newly established regulations. This move is intended to empower consumers and provide them with additional remedies beyond existing local, state, or federal laws.

The bill also includes a severability clause, ensuring that if any part of the legislation is deemed invalid, the remaining provisions will still be enforceable. This aspect is crucial for maintaining the integrity of the law, even if certain sections face legal challenges.

Debate surrounding Senate Bill 86 has highlighted concerns from various stakeholders. Proponents argue that the bill is necessary to protect consumers from fraudulent practices, particularly in an increasingly digital marketplace. However, some business groups have expressed apprehension about the potential for increased regulatory burdens and the implications for small businesses.

The economic implications of this bill could be substantial. By strengthening consumer protections, the legislation may foster greater trust in the marketplace, potentially leading to increased consumer spending. Conversely, businesses may need to invest more in compliance measures, which could impact their operational costs.

Senate Bill 86 is set to take effect the day after a ninety-day period following the final adjournment of the general assembly, unless a referendum petition is filed against it. If such a petition occurs, the bill will require approval from voters in the next general election.

As the legislative process unfolds, the outcome of Senate Bill 86 will be closely watched, as it could set a precedent for consumer protection laws in Colorado and beyond. The discussions surrounding this bill reflect broader trends in consumer advocacy and the ongoing balance between regulation and business interests.