The Colorado Privacy Act: A Quick Guide for Businesses

The Colorado Privacy Act (CPA) grants residents control over their personal information, and they can access, correct, or delete their personal data. They can also opt out of the sale of their personal information, use of their information for targeted advertising, and in some instances, opt-out of automated decision-making processes. 

What Makes Colorado Unique?

To comply with the CPA, businesses must be transparent about how they collect, use, and share personal data. Unlike California's law, Colorado requires a "Data Protection Impact Assessment" (DPIA) before using personal information for profiling if there's a risk of unfair treatment or harm. Additionally, by July 1, 2024, businesses must offer a universal opt-out mechanism for targeted advertising and data sales.

Why It Matters

While penalties can include injunctions and fines, the Attorney General's office is currently focused on educating businesses about the law. However, the CPA represents a growing trend in data privacy legislation. Understanding the Act helps businesses operating in Colorado (or collecting data from Colorado residents) avoid non-compliance issues and navigate the CPA's requirements.