Unfair drug pricing practice - deceptive trade practice - definitions.

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(1) As used in this section, unless the context otherwise requires:

  1. "Emergency" means a declaration made by the department of public health and environment pursuant to section 25-1.5-101 (1)(aa), C.R.S., after the department has determined that there is a shortage of drugs critical to public safety.

  2. "Unfair drug pricing" means charging a consumer an unconscionable amount for thesale of a drug. Unfair drug pricing occurs if:

  1. The price charged by a wholesaler, distributor, or retailer exceeds by more than tenpercent the average price for the drug charged by that wholesaler, distributor, or retailer during the thirty days immediately preceding the declaration of an emergency; and

  2. The increase in the amount charged by a wholesaler, distributor, or retailer is notattributable to cost factors of the retailer, including, but not limited to, replacement costs, taxes, and transportation costs incurred by that wholesaler, distributor, or retailer.

(2) A person engages in a deceptive trade practice when, in the course of such person's business, vocation, or occupation, the person engages in the practice of unfair drug pricing.

Source: L. 2005: Entire section added, p. 372, § 2, effective April 22.


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