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Protections Against Deceptive Pricing Practices

By Rachel Brunfon, Attorney at The Rains Law Firm

On April 21, 2025, the Colorado Legislature passed HB 25-1090, the Protections Against Deceptive Pricing Practices Act (the “Act”).   The Act took effect on January 1, 2026.  The Act was primarily aimed at housing, but the breadth of the requirements encompasses all service providers, including those of us in estate planning. 

If you are a service provider (like a lawyer, CPA, or financial advisor) or a contractor that provides a combination of goods and services, the Act changes how you must present your quotes, invoices, and contracts. The goal is “all-in” pricing transparency.  For those of us who are attorneys, this is a best-practice opportunity to set a new and more uniform baseline for transparency with our clients.   

Understanding the Pricing Transparency Act

Here is how to interpret these requirements for your business: 

1. The "Total Price" Rule

When you advertise your services or provide a quote, you must disclose the
 
maximum total price clearly and conspicuously. 

  • For Professionals: If you have a fixed fee for a consultation or a specific deliverable (e.g., “Tax Return Filing: $500”), you cannot add mandatory “administrative” or “filing” fees on top of that later unless they were included in the disclosed total. 
  • For Contractors: If you provide a quote for labor and materials, you must be upfront about the total cost. You can no longer hide mandatory surcharges—like “truck fees” or “fuel recovery fees”—until the final invoice. 
2. Honest Labeling of Costs

You cannot misrepresent what a charge is for. 

  • What to avoid: Don’t label an internal overhead cost as a “Government Compliance Fee” or a “Legal Documentation Tax.” If it’s a fee you’ve created to cover your own costs, it must be labeled accurately as such, not framed as a pass-through cost required by a third party or the law. 
3. Prohibited Contract Terms

Just because a client signs a contract doesn’t mean a fee is legal. 

  • The “No Sneaking” Rule: You cannot include provisions in your engagement letters or service contracts that require clients to pay fees specifically prohibited by the Act. If the law says a certain type of fee is deceptive or illegal, it remains illegal even if the client “agreed” to it in writing. 

Implementation Checklist for Your Business

Review Your Marketing

Do your website or brochures list “Starting at $X” prices that are impossible to actually get because of mandatory add-ons?

Standardize Your Quotes

Ensure your initial bid or estimate reflects the maximum the client will pay for that specific scope of work, including all mandatory costs.

Audit Your Invoices:

Look at your line items. Are “Administrative Fees” or “Service Charges” clearly explained, or could they be seen as misleading?

Empowerment Through Information

Consumers gain access to comprehensive pricing data, enabling more informed purchasing decisions.

Compliance Steps

For professionals like lawyers, contractors, and advisors, providing an exact “out-the-door” price is often impossible because the scope of work changes. The Act accounts for this by offering a compliance roadmap for variable-price services. 

If you cannot provide a final total because the cost depends on factors outside your control (like court filing fees, material costs, or hourly complexity), you must follow these two steps: 

Step 1: The "Point of Selection" Disclosure

The moment a client is deciding to hire you or select a specific service level, you must clearly show: 

  • The Variables: Explain exactly what factors will change the final price (e.g., “Total price depends on the number of hours required for litigation”). 
  • Mandatory Fees: Disclose any non-negotiable fees (e.g., “A mandatory $500 retainer/setup fee applies”). 
  • Variation Warning: Explicitly state that the final price may vary. 
  • The Calculation Method:  If it’s a flat fee, state the amount (e.g., “$150 per document”). 
  • If it’s variable (like a commission or hourly rate), explain the math (e.g., “3% of assets under management,” or “$300/hour,” or, “$300 per hour billed in 15-minute increments”). 
Step 2: The "Subtotal Page" (The Pre-Checkout Breakout)

Once the client has chosen to proceed but before they hit “pay” or sign the final contract, you must provide a summary page that includes: 

  1. Itemization: A line-by-line breakdown of the service price. 
  1. Fee Transparency: A clear listing of any flat fees, variable fees, or percentage-based fees that will make up the total. 

The Author

Rachel combines over 15 years of legal experience at top-tier global firms with a multidisciplinary background spanning nonprofit, finance, and business law. She advises clients on estate planning, business succession, and nonprofit support, helping families and organizations preserve both tangible assets and intangible legacies. Rachel’s approach is collaborative, strategic, and purpose-driven, ensuring plans reflect both financial and personal goals.

Learn more about Rachel Brunfon 

Start The Conversation

If you have any questions about the content of this article, or, would like assistance in either determining if you are already compliant, or on becoming compliant with the Act,
schedule a consultation with one of our attorneys.

Prefer to speak with us directly? Call 720-528-4227

The Rains Law Firm proudly serves Coloradans across the state,
with offices throughout the Denver Metro Area. 

Disclaimer

This article is for informational purposes only and does not constitute legal advice.

Reading this article does not create an attorney-client relationship.