Overview of the Colorado Privacy Act
What is the Colorado Privacy Act?
The Colorado Privacy Act (CPA), enacted on July 8, 2021, and effective from July 1, 2023, is a comprehensive data privacy law designed to give Colorado residents greater control over their personal data. It aligns with similar privacy regulations like the California Consumer Privacy Act (CCPA) and Virginia’s Consumer Data Protection Act (VCDPA).
Who must comply with the CPA?
The CPA applies to businesses operating in Colorado that:
- Process personal data of at least 100,000 consumers annually.
- Process personal data of at least 25,000 consumers annually and derive revenue from selling that data.
Exemptions include government entities, HIPAA-covered organizations, and those processing employment records or de-identified data.
Key Provisions for Publishers
What does “Sale of Data” mean under CPA?
The CPA defines the sale of data as any exchange of personal data for monetary or other valuable consideration by a controller to a third party. Publishers are typically considered “data controllers” as they determine how visitor data is collected and processed.
Consumer Rights under CPA
Colorado residents have several rights under the CPA, including:
- Opt-Out Rights: Consumers can opt out of targeted advertising, data sales, and profiling. Businesses must respect universal opt-out signals like Global Privacy Control.
- Access and Portability: Consumers can request access to their personal data in a portable format.
- Correction and Deletion: Consumers can correct inaccuracies or request deletion of their personal information.
Compliance Requirements for Publishers
Transparency and Privacy Notices
Businesses must provide clear and accessible privacy notices detailing:
- Categories of personal data collected.
- Purposes for processing data.
- Third-party sharing practices.
Data Protection Assessments
Publishers must conduct assessments for processing activities that pose heightened risks to consumers, such as targeted advertising or handling sensitive data.
Sensitive Data Handling
What qualifies as sensitive data?
Sensitive data includes information revealing racial or ethnic origin, religious beliefs, health conditions, or sexual orientation. Processing such data requires explicit consumer consent through opt-ins.
How does this impact publishers?
Publishers must ensure they obtain prior consent before processing sensitive information and implement robust mechanisms to manage these permissions effectively.
Enforcement and Penalties
Who enforces the CPA?
The Colorado Attorney General and District Attorneys enforce the law. Violations are treated as deceptive trade practices under the Colorado Consumer Protection Act.
What are the penalties?
Noncompliance can result in fines of up to $20,000 per violation, with a maximum penalty reaching $500,000. A 60-day cure period allows businesses to address violations before enforcement action is taken; however, this provision expires on January 1, 2025.
Practical Tips for Publishers
Steps to Ensure Compliance
- Update Privacy Policies: Clearly outline your data collection and usage practices in compliance with CPA requirements.
- Implement Opt-Out Mechanisms: Provide one-click options for consumers to opt out of targeted ads and data sales.
- Conduct Risk Assessments: Evaluate high-risk processing activities and document findings thoroughly.
- Secure Explicit Consent: Obtain opt-ins for processing sensitive data categories like health or religious information.
- Train Staff: Educate your team on consumer rights and compliance protocols under the CPA.
Aligning with Other Laws
If your business complies with CCPA or GDPR, you may already meet many CPA requirements but should review specific nuances in definitions and obligations under Colorado law.
Why does the CPA matter for publishers?
The Colorado Privacy Act represents a significant shift toward consumer-centric privacy regulations in the U.S., requiring publishers to adopt transparent practices and prioritize user consent. By understanding its provisions and implementing necessary measures, publishers can avoid penalties while building trust with their audience through ethical data practices.