Democratic lawmakers in Colorado have introduced two bills aimed at protecting renters by addressing price fixing and deceptive fees. The first bill, House Bill 1004, seeks to prevent landlords from engaging in price fixing through the use of online algorithms. The second bill, House Bill 1090, targets landlords who impose deceptive fees on renters.
The Apartment Association of Metro Denver has expressed concerns about the broad scope of the legislation, arguing that it could penalize prudent business practices. The association is recommending amendments to ensure more neutral legislation that does not hinder landlords from accurately pricing their rentals based on market trends.
The bills come in response to allegations of price fixing by landlords, with Colorado Attorney General Phil Weiser recently joining a Department of Justice lawsuit targeting six landlords for using algorithmic pricing schemes to harm renters. The legislation aims to prevent collusion between landlords and ensure transparency in pricing practices.
While the bills aim to protect renters from excessive fees and deceptive pricing, the Apartment Association of Metro Denver is calling for more clarity on what constitutes reasonable fees and charges for landlords. They are also concerned that the legislation may inadvertently outlaw common business practices such as late fees, which were previously allowed within statutory caps.
The lawsuit filed by the DOJ alleges that the six landlords participated in a scheme to set rents using competitively sensitive information through pricing algorithms. It is important for lawmakers to strike a balance between protecting renters and ensuring that landlords can continue to operate their rental properties effectively.
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