Colorado Assembly defines necessities and prohibits price gouging during disasters

On April 11, 2025, the Colorado State Legislature introduced House Bill 1010, a significant piece of legislation aimed at protecting consumers during times of crisis. The bill seeks to address the issue of price gouging during declared disaster emergencies, a concern that has gained prominence in recent years as communities face natural disasters and other emergencies.

House Bill 1010 defines "necessities" as goods and services essential for the health, safety, and welfare of the public. It expands the definition of a "disaster" to include not only natural events like floods and wildfires but also market disruptions that can affect the production, distribution, or consumption of essential products and services. This broader definition aims to ensure that consumers are protected from unfair pricing practices during various types of emergencies, including economic crises.

Key provisions of the bill include a prohibition on price increases for necessities during a declared disaster emergency, as specified by the governor. If a price increase occurs under these circumstances, it would be classified as a deceptive trade practice, allowing for legal recourse against offending businesses. This measure is designed to prevent exploitation of consumers when they are most vulnerable.

The bill has sparked notable debates among lawmakers and stakeholders. Supporters argue that it is a necessary step to safeguard consumers, particularly low-income families who may struggle to afford essential goods during emergencies. Critics, however, express concerns about the potential impact on businesses, particularly small retailers who may face challenges in maintaining inventory and pricing stability during crises.

The implications of House Bill 1010 extend beyond consumer protection; it also raises questions about the balance between safeguarding public welfare and supporting local businesses. Experts suggest that while the bill is a positive move towards consumer rights, it will require careful implementation to avoid unintended consequences that could harm the very businesses that communities rely on.

As the bill moves through the legislative process, its future remains uncertain. If passed, it could set a precedent for how Colorado handles pricing during emergencies, potentially influencing similar legislation in other states. The outcome of House Bill 1010 will be closely watched by both consumer advocates and business owners, as it addresses a critical intersection of public safety and economic stability.