Understanding the CPA’s Scope
Who Must Comply with the Act
The Colorado Privacy Act (CPA) applies to publishers who conduct business in Colorado and either control the processing of personal data for 100,000 or more Colorado consumers, or control the processing of personal data for 25,000 or more Colorado residents while deriving revenue from the sale of personal data. Unlike some other privacy laws, the CPA does not have a gross revenue threshold, focusing instead on data processing volume.
Consumer Rights and Publisher Obligations
New Protections for Colorado Residents
The CPA grants Colorado consumers various rights regarding their personal data, including the right to opt out of targeted advertising and data sales, as well as the rights to access, correct, and delete their personal information. Publishers must be prepared to honor these requests and implement systems to manage consumer data rights effectively.
Data Minimization and Purpose Limitation
Restricting Data Collection and Use
Under the CPA, publishers are required to adhere to data minimization principles, collecting only data that is adequate, relevant, and limited to what is necessary for the stated purposes of processing. Additionally, publishers must specify the express purpose for data collection and processing, and avoid using data for secondary purposes without consumer consent.
Transparency and Accessibility
Clear Communication Requirements
The CPA mandates that consumer disclosures be understandable and accessible. Publishers must use plain language and provide communications in languages commonly used by their business. Importantly, these disclosures must be readable on all devices, including mobile applications and smaller screens, through which consumers typically interact with the publisher.
Global Privacy Control (GPC) Implementation
Responding to Universal Opt-Out Mechanisms
Colorado has approved the Global Privacy Control (GPC) as a valid universal opt-out mechanism. Publishers will need to respond to valid GPC requests, similar to requirements in California9. However, it’s crucial to note that implementing GPC alone is not sufficient for full CPA compliance, and publishers should ensure that their practices align with all aspects of the law.
Data Protection Assessments
Evaluating Data Processing Risks
Publishers must conduct data protection assessments for processing activities that present a heightened risk of harm to consumers, such as targeted advertising or selling personal data. These assessments will help ensure compliance and demonstrate due diligence in protecting consumer privacy.
Preparing for Enforcement
Compliance Deadline and Potential Penalties
The CPA’s enforcement began in July 2023, giving publishers a limited time to ensure compliance. Violations of the CPA are considered deceptive trade practices, which can result in significant penalties. Publishers should prioritize implementing necessary changes to avoid potential legal and financial consequences. By understanding and adhering to these key aspects of the Colorado Privacy Act, publishers can better protect consumer privacy, build trust with their audience, and avoid regulatory issues in the evolving landscape of data protection laws.