Colorado Politics

Colorado attorney general targets landlord price gouging following Marshall fire

In an effort to stop landlords from gouging homeowners displaced by the Marshall fire, Colorado Attorney General Phil Weiser on Thursday sent letters to four online rental companies urging them to take measures to stop any such attempts to price gouge.

“The Department has received consumer complaints, and recent investigative reporting has conveyed, that some landlords have raised prices for temporary and permanent housing to excessive levels following the Marshall Fires,” the letter states. “This trend is alarming given the present disaster and recovery efforts and may constitute a violation of” Colorado law.

The letters went to Zillow, AirBNB, Vrbo and REColorado.com.

“Given your companies’ commitments to the protection of consumers who use your platforms to find rental housing, we hope and expect that you are taking necessary steps to ensure unscrupulous actors do not use your platform to take advantage of vulnerable Coloradans during the present disaster period,” according to the letter.

A call and email to REColorado.com were not immediately returned Thursday.

“The potential for thousands of Coloradans who suffered great loss to be then faced with excessively and unjustifiably high housing costs is not just a legal problem, but also a moral one,” Weiser said in a news release. “Coloradans are protected under the law from illegal price gouging, and online rental companies need to understand this risk and do what they can to stop businesses and individuals from preying on our neighbors during such challenging times.”

Over 1,000 homes were destroyed in the deadly Dec. 30 fire that tore through more than 6,000 acres in Superior and Louisville. Entire neighborhoods were lost and Gov. Jared Polis declared a state of emergency.

While many landlords have offered discounted or free temporary rentals to people affected by the fire, others have significantly raised their rates, according to the Marshall Fire Housing Needs and Availability Facebook group.

Colorado law prohibits charging excessive prices for certain essential products, goods or services during a disaster period (up to 180 days after the disaster was declared) and makes clear that such price gouging is a deceptive trade practice under the Colorado Consumer Protection Act, according to Weiser’s office.

The letter asks company officials to meet with the state’s consumer protection attorneys “to discuss compliance with state law and measures to protect Colorado consumers impacted by this disaster,” according to the letter. Responses were requested by Jan. 25.

Coloradans who witness price gouging or think they might be a victim are urged to file a report with the office at 800-222-4444 or StopFraudColorado.gov.

DENVER, CO – JANUARY 13: Colorado attorney general Phi Weiser bows his head for a moment of silence as he and others honor the victims of the lives lost in Colorado in 2021 during Gov. Jared Polis’ state of the state address at the Colorado State Capitol Building on Thursday, January 13, 2022. (Photo by AAron Ontiveroz/The Denver Post)
AAron Ontiveroz

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