Colorado Privacy Act (CPA): the privacy law you need to know if you operate in the U.S.

Data protection regulations vary by region, but they all share a common goal: safeguarding individuals’ privacy. Today we focus on the case of Colorado, one of the pioneering U.S. states to establish its own law: the Colorado Privacy Act (CPA). If you offer services or products in this state, this is relevant to you.

What is the Colorado Privacy Act (CPA) and who does it apply to?

The CPA is a privacy law in effect in Colorado since July 2021, aimed at protecting the personal data of its residents.
It is similar to other regulations like the CCPA (California) or the VCDPA (Virginia), granting rights such as access, data deletion, and the right to opt out of data use for advertising purposes. It differs in how it defines sensitive data, and legal obligations may vary depending on the state.

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Who must comply?

Applies to companies that:

  • Process data from more than 100,000 Colorado consumers per year.
  • Or handle data from 25,000 individuals and derive revenue from its sale.

☑️ No minimum annual revenue required.

What is excluded from the CPA?

Excluded data:

  • Regulated by other laws (COPPA, FERPA, healthcare), anonymized, or employment-related.

Excluded entities:

  • Banks, airlines, public agencies, and universities governed by federal or state laws.
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Legal obligations under the CPA: what your company needs to know

The CPA imposes clear responsibilities on data controllers. It also covers key aspects related to cookies, privacy, and penalties.

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Defined roles

  • Controller: decides how the data is used.
  • Processor: manages data following instructions.
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Main obligations

  • Provide clear information.
  • Collect only necessary data.
  • Apply appropriate security measures.
  • Obtain explicit consent for sensitive data.
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Penalties

  • Up to $2,000 per violation
  • Maximum of $500,000 for continuous violations
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Use of cookies

  • No prior consent required, except for sensitive data or minors.
  • Opt-out must be allowed and usage explained.
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Privacy notice

Must indicate:

  • What data is collected.
  • For what purpose.
  • With whom it is shared.
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General compliance

  • Opt-out mechanism.
  • Respond to user requests.
  • Clear and accessible information.
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Comply with web privacy
Legal data obligations
Colorado CPA Law
CPA cookie use

CPA Web Compliance: A Guide for Businesses

How to adapt your website to the Colorado Privacy Act and avoid penalties.

1. Audit your cookie usage

Identify which cookies you use, what data they collect, and if they are shared with third parties.

2. Updated privacy policy

It must clearly explain: what data you collect, for what purpose, and how users can exercise their rights.

3. Opt-out mechanisms

Make it easy for users to reject the sale of their data and personalized advertising.

4. Consent for sensitive cases

If you use cookies that collect data from minors or sensitive information, explicit consent is required.

5. Universal opt-out (July 2024)

From that date, you must honor users' automatic opt-out signals.

6. Additional best practices

Assess risks, review third-party contracts, and train your legal and technical teams.

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Frequently Asked Questions

In this section, we answer the most common questions about cookie policies and how to ensure your website complies with current regulations.

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