A bill that would empower the Colorado Attorney General’s Office to go after price gouging in grocery stores passed the House on Monday in a party-line vote, with Democrats in favor and Republicans opposed. 

House Bill 1010 was among the first to be introduced this legislative session. It is sponsored by Reps. Yara Zokaie, D-Fort Collins, and Kyle Brown, D-Louisville, as well as Sen. Mike Weissman, D-Aurora. 

Zokaie, a first-term lawmaker and mother of three, said she understands firsthand how the increased costs of everyday items have put pressure on working families. While Zokaie said inflation is caused by multiple factors, like supply chain disruptions and interest rates, she also points to data showing that corporate profiteering could be another reason. 

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A March 2024 report from the Federal Trade Commission highlighted “elevated profit levels” for grocery retailers that “casts doubt on assertions that rising prices at the grocery store are simply moving in lockstep with retailers’ own rising costs.”

In remarks on the House floor during a preliminary vote last week, Zokaie said it is “ignorant for us to say that corporate greed is not also a factor” for today’s higher prices. 

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Zokaie has also called out the lack of grocery store competition in some areas as a driver behind higher prices. 

The issue dominated a contentious acquisition proposal between Kroger and Albertsons that failed last year after Colorado Attorney General Phil Weiser sued to stop the merger. Weiser argued the deal would lead to less competition that would drive up costs, particularly on the Western Slope. 

A Summit Daily News analysis found that prices at some Kroger-owned stores in mountain towns were slightly more than in Denver. Prices were higher in areas with less competition, while Kroger maintained that increased fuel and labor costs are the main driver for higher prices on the Western Slope. 

House Bill 1010 represents an expansion of a 2020 law that cracked down on price gouging of essential supplies like food, fuel, medical supplies and building materials during a state of emergency. 

This year’s bill would extend that to include most grocery store items. Under the bill, if an item’s cost remains steady for 90 days before increasing by 10% or more above its average price, that would amount to price gouging. 

That would be considered a deceptive trade practice and could lead to fines against businesses from the Colorado Attorney General’s Office worth up to $20,000. Businesses could avoid penalties if they’re able to reasonably explain why a market disruption led to increased prices beyond 10%. 

While the bill had originally been written to prohibit price gouging at all times, it was amended to restrict the enforcement during disaster declarations from the governor to appease the concerns of business groups. 

“It gives our state the tools to hold bad actors accountable, and it levels the playing field for honest businesses that play by the rules,” Zokaie said. 

House Republicans criticized the measure for being too arbitrary in its definition of price gouging, saying it would constrain the free market and lead to too much power in the hands of government. 

“The beauty of the free market is that it’s free,” said Rep. Ken DeGraaf, R-Colorado Springs. “Prices go up or down by more than 10% on a daily basis. And that’s just the market determining what the market will bear. … What’s called price gouging in this bill is actually just a market adjustment.” 

The measure, which passed 38-24, now heads to a Senate committee where it must gain approval before going to a full chamber vote. If passed by the Senate, the bill will head to Gov. Jared Polis’s desk.