What Is the Colorado Privacy Act (CPA)?

The Colorado Privacy Act draws inspiration from established privacy regulations such as Virginia's CDPA, California's CCPA and CPRA, and the influential GDPR from the EU. Additionally, it incorporates its own distinct set of features that warrant close attention. Let's delve into the key aspects of the Colorado Privacy Act:

  • Inclusive Approach: Unlike some other privacy acts, the Colorado Privacy Act extends its reach to encompass non-profit organizations. It applies to all entities, irrespective of their profit status. If you process or control consumer data, this act applies to you! No revenue threshold required.
  • Empowering Consumers: The Colorado act places paramount importance on consumer rights and protection. It puts individuals in the driver's seat, enabling them to exercise control over their personal data. Their privacy matters!
  • Exclusions: While the Colorado Privacy Act covers a wide array of data protection scenarios, it does not extend its jurisdiction to employee or business-to-business (B2B) data. Its focus primarily revolves around safeguarding consumer privacy.
  • Flexible Enforcement: To ensure effective compliance, the Attorney General and state district attorneys possess the authority to address any significant gaps in the statute. They can establish rules, oversee compliance efforts, and enforce the law, ensuring a culture of data privacy thrives within the state.
  • Consequences of Non-Compliance: Violations of the Colorado Privacy Act are deemed deceptive trade practices under the Colorado Consumer Protection Act. This emphasizes the critical nature of adhering to the act's requirements and underscores the severe repercussions of non-compliance.

Remember, compliance with privacy regulations need not be an arduous task. With the right approach, it presents an opportunity to build trust with your customers and demonstrate your commitment to protecting their privacy. 

Ready to embark on your compliance journey? Explore our article on achieving compliance with the Colorado Privacy Act or schedule a consultation with one of our experts today!

Frequently Asked Questions

What is the Colorado Privacy Act?

The Colorado Privacy Act is a comprehensive privacy law that sets rules for how businesses collect, use, and share personal information about Colorado residents. The law defines personal information as any information that is linked or reasonably linkable to an identified or identifiable individual, and includes things like name, address, email address, and social security number.

Who does the CPA apply to?

The CPA applies to businesses that conduct business in Colorado or target Colorado residents with their products or services and meet one of the following criteria:

Controls or processes the personal data of at least 100,000 Colorado residents per year

Derives revenue or receives a discount on the price of goods or services from the sale of personal data and processes or controls the personal data of at least 25,000 Colorado residents per year

The law also applies to third-party service providers that process personal information on behalf of covered businesses.

When does the CPA go into effect?

The CPA goes into effect on July 1st, 2023.

Why is the CPA a thing?

The CPA is intended to provide Colorado residents with greater control over their personal data and to give them the ability to access, correct, and delete that data. The law is also designed to promote transparency in data processing practices and to ensure that businesses that collect, process, and share personal information are held accountable for their actions.

How can businesses comply with the CPA?

To comply with the CPA, businesses must:

Provide Colorado residents with notice: Businesses must provide Colorado residents with a clear and conspicuous notice that describes their data processing practices, including the categories of personal information they collect, the purposes for which they use that information, and the categories of third parties with whom they share that information.

Obtain consent: Businesses must obtain Colorado residents' consent before processing their sensitive personal information, such as health information, financial information, or information about race or ethnicity.

Provide access, correction, and deletion rights: Businesses must provide Colorado residents with the right to access, correct, and delete their personal information. Businesses must also provide Colorado residents with the right to opt-out of the sale of their personal information.

Ensure data security: Businesses must implement reasonable security measures to protect personal information from unauthorized access, destruction, use, modification, or disclosure.

Appoint a privacy officer: Businesses must appoint a privacy officer who is responsible for ensuring compliance with the CPA.