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Colorado AG announces multistate settlement with GS Labs for false advertising and overcharging during COVID-19 pandemic

GS LabsJune 10, 2026Colorado Attorney General

Penalty Amount

$4,870,000

Summary

Colorado Attorney General Phil Weiser and a bipartisan coalition of 18 attorneys general announced a $4.87 million settlement with GS Labs, a former COVID-19 rapid testing business. The company was found to have violated the Colorado Consumer Protection Act by falsely advertising test results with no wait times, same day appointments, and no out-of-pocket expenses, while overcharging consumers and insurance providers.

Remedy

GS Labs will pay over $3.6 million in restitution to consumers and $1.25 million to the multistate group (Colorado receiving $23,601 for legal fees). If GS Labs resumes COVID-19 testing, they are prohibited from charging administrative fees, pricing above market rate, or charging consumers for late results.

Monetary PenaltyConsumer RefundsInjunction

Contract Impact

In-house legal teams should review vendor agreements with healthcare service providers, particularly those involving consumer-facing pricing and advertising. Key clauses to examine include: pricing representations (ensuring advertised prices match actual charges), fee disclosure provisions (especially any administrative or hidden fees), performance guarantees (e.g., turnaround times for services), and indemnification for false advertising claims. Customer-facing terms of service and consent forms should also be audited to ensure clear disclosure of all costs and limitations. Additionally, contracts with insurance providers should be checked for compliance with market rate pricing and billing practices.

Contract Search Terms

false advertisingconsumer protection actadministrative feecash pricemarket rate pricingtest result guaranteeno out-of-pocket expensesrestitution clausepricing complianceCOVID-19 testing services

Laws Cited

Colorado Consumer Protection Act

Violation Types

Entity Details

Entity

GS Labs

Industry

Healthcare

Multistate Coalition

Alabama Attorney GeneralArizona Attorney GeneralIllinois Attorney GeneralIndiana Attorney GeneralIowa Attorney GeneralKansas Attorney GeneralMassachusetts Attorney GeneralMinnesota Attorney GeneralMissouri Attorney GeneralNebraska Attorney GeneralNew Jersey Attorney GeneralNorth Dakota Attorney GeneralOhio Attorney GeneralOregon Attorney GeneralPennsylvania Attorney GeneralSouth Dakota Attorney GeneralWashington Attorney General

Official Sources

Source Evidence

Entity Name
"GS Labs"
Fine Amount
"$4.87 million settlement"
Laws Cited
"Colorado Consumer Protection Act"
Violation Types
"false advertising and overcharged Coloradans"
Remedy Summary
"GS Labs will pay over $3.6 million in restitution"
Is Multistate
"bipartisan coalition of 18 attorneys general"

Related Enforcement Actions

MN

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Attorney General Ellison announced a $4.87 million multistate settlement with GS Labs for overcharging patients, charging unlawful administrative fees, and failing to deliver timely COVID-19 test results. The settlement includes $3.63 million in restitution to affected consumers and $1.25 million to the multistate group, along with injunctive relief if GS Labs resumes operations.

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