Colorado Privacy Act (CPA)

Definition & Meaning:

The Colorado Privacy Act (CPA) is a state law aimed at protecting the personal data of Colorado residents.

Enacted to give consumers more control over their personal information, the CPA requires businesses that collect and store data to adhere to specific guidelines regarding the handling of this information.

If your business serves Colorado residents and meets certain criteria, such as processing data of a certain number of consumers, you fall under the purview of the CPA.

Under the CPA, consumers have several rights concerning their personal data.

They can ask a company to access, correct, delete, or opt out of the processing of their personal data for purposes like targeted advertising, sale of personal data, or profiling in furtherance of decisions that produce legal or similarly significant effects.

This means, for example, if a website uses personal data to personalize ads, a Colorado consumer can request that their data not be used for this purpose.

Businesses must respond to these consumer requests within a specific timeframe, typically 45 days. They must also inform consumers about the types of personal data they collect and the purposes for which they use it.

The CPA also mandates that businesses conduct data protection assessments for certain processing activities that present a heightened risk of harm to consumers.

The act applies to businesses that control or process the personal data of 100,000 consumers or more in a calendar year or those that derive revenue from the sale of personal data and control or process the personal data of 25,000 consumers or more.

Compliance with the CPA involves updating privacy policies, implementing secure data processing practices, and possibly appointing a data protection officer, depending on the nature and scope of the data processing activities.

The goal is to ensure transparency, security, and accountability in the handling of consumer data, reflecting a growing trend toward stronger data privacy protections in the United States.