Can I charge different prices to different customers without violating discrimination laws in Colorado? What are the requirements?

Charging Different Prices to Different Customers in Colorado

According to CORS 6-2-103, it is generally illegal for any person, firm, or corporation doing business in the state of Colorado to discriminate between different sections, communities, or cities, or portions thereof, or between different locations in such sections, communities, cities, or portions thereof in this state by selling or furnishing a commodity, product, or service at a lower rate in one section, community, or city, or any portion thereof, or in one location in such section, community, or city, or any portion thereof than in another after making allowance for the difference, if any, in the grade or quality, quantity, and actual cost of transportation from the point of production, if a raw product or commodity, or from the point of manufacture, if a manufactured product or commodity. Therefore, charging different prices to different customers based on their location or other factors without a valid reason is illegal in Colorado ^[1.1].

However, there are exceptions to this rule. CORS 6-2-103(2) states that nothing in this article shall be construed to affect or apply to any service or product sold, rendered, or furnished by any public utility, the sale, rendition, or furnishing of which is subject to regulation by the Colorado public utilities commission or by any municipal regulatory body. This article shall not be construed to prohibit the meeting in good faith of a competitive rate.

Moreover, there are specific rules for tiered electricity rates for customers with medical conditions. The Colorado Public Utilities Commission has created an exemption from any tiered electricity rate plan based on a customer’s medical condition. The commission’s rules provide a mechanism for the recovery of costs associated with implementing and providing the medical exemption. The medical exemption is for individuals who have the verification of a physician licensed in Colorado of a heat-sensitive medical condition or the need for the use of an essential life support device. If the commission determines that a means test is necessary for the medical exemption, the commission shall use no less than four hundred percent of the federal poverty level for the customer’s household as the maximum income to be eligible for the medical exemption ^[2.1].

In summary, charging different prices to different customers based on their location or other factors without a valid reason is generally illegal in Colorado. However, there are exceptions for public utilities subject to regulation and for tiered electricity rates for customers with medical conditions.

Source(s):

• [1.1] Discriminatory sales - exceptions.
• [2.1] Medical exemption - tiered electricity rates - rules.

Jurisdiction

Colorado

• General