Gov. Jared Polis has signed legislation to crack down on what sponsors described as “price gouging” of certain items during declared emergencies.

House Bill 1010 defines “price gouging” as increasing the price of a good or service “essential for the health, safety, and welfare of the public” by 10% or more above what it was sold for before the emergency declaration.

Under current law, price gouging during a declared disaster or emergency is considered an “unfair and unconscionable act or practice” violating the Colorado Consumer Protection Act.

“This bill is about putting public welfare and consumer protection ahead of corporate greed,” said Sen. Mike Weissman, D-Aurora, who sponsored the bill, along with Reps. Yara Zokaie, D-Fort Collins, and Kyle Brown, D-Louisville. “Time and time again, we have seen bad actors use disasters as an excuse to raise prices on necessities and line their own pockets. It’s time for us to step in and ensure that Colorado families can purchase the things they need – like groceries and diapers – at prices they can afford during times of crisis.”

According to a 2024 report by the Federal Trade Commission, the nation’s three largest grocery chains “accelerated and distorted” the adverse effects of supply chain disruptions during the COVID-19 pandemic.

Colorado legislators also sought to limit “price gouging” on life-saving prescription drugs in 2021 and passed a law in 2024 to prohibit it on rent after natural disasters. That bill, sponsored by Weissman and Brown, was intended to tackle the issue of skyrocketing rents for people who lost their homes due to the Marshall Fire.