The Colorado Privacy Act: What You Need to Know to Ensure Compliance

Colorado has enacted its own privacy legislation, the Colorado Privacy Act (CPA), joining California and Virginia in the data privacy law landscape. The CPA, effective from July 1, 2023, applies to businesses collecting, processing, or selling personal data of Colorado residents. It grants residents rights to access, correct, delete, and opt-out of personal data sales. To comply with the CPA, businesses must disclose data practices, obtain explicit consent, provide access and deletion rights, and establish data protection policies. Non-compliance can lead to significant penalties, including statutory damages and potential payment of attorneys' fees and costs.

How to be Compliant with Colorado’s Privacy Act

To be compliant with the CPA, businesses must take several steps, including:

1. Disclose Data Practices: Businesses must provide clear and concise disclosures of their data practices, including the categories of personal data collected, the purposes of the collection and processing, and the categories of third parties with whom the data is shared.
2. Obtain Consent: Businesses must obtain explicit consent from consumers for the collection and processing of their personal data. Consent must be freely given, specific, informed, and unambiguous.
3. Provide Access and Deletion Rights: Businesses must provide Colorado residents with the right to access and delete their personal data.
4. Establish Data Protection Policies: Businesses must establish data protection policies that govern the collection, processing, and storage of personal data.

Enforcement of Colorado’s Privacy Act

The CPA provides Colorado residents with a private right of action to sue businesses that violate their rights under the law. The Colorado Attorney General also has the authority to bring enforcement actions against businesses for violations of the CPA.

Penalties for non-compliance with the CPA can be significant. The law provides for statutory damages of up to $100 per violation, up to a maximum of $500,000 or 0.5% of the business’s gross revenue, whichever is less. In addition, businesses may be required to pay attorneys’ fees and costs if they lose in court.

For more information on the steps you need to take, call us at VOS Consulting Group today!