How to Comply with the Colorado Privacy Act (CPA): A Practical Guide for eCommerce

What is the Colorado Privacy Act (CPA)?

The Colorado Privacy Act (CPA) is Colorado’s state-level data privacy law that grants new rights to consumers and sets obligations for any business that collects or processes personal data from Colorado residents. It shares similarities with the GDPR and California’s CPRA, but with state-specific requirements.

• Effective date: July 1, 2023
• Enforced by: Colorado Attorney General and District Attorneys

Who does the CPA apply to?

The CPA applies to businesses that:

• Control or process the personal data of more than 100,000 Colorado consumers per year, or
• Derive revenue from the sale of personal data of at least 25,000 consumers.

This applies regardless of your business location: if you sell to Colorado residents, you must comply.
Legal reference: Section 6-1-1304, C.R.S.

What rights do consumers have under the CPA?

Colorado residents are entitled to:

1. Access: Request a copy of their personal data.
   (Section 6-1-1306(1)(a))
2. Correction: Correct inaccurate personal data.
   (Section 6-1-1306(1)(b))
3. Deletion; Request deletion of their data.
   (Section 6-1-1306(1)(c))
4. Data portability: Receive their data in a structured format.
   (Section 6-1-1306(1)(d))
5. Opt out: Object to the use of their data for targeted advertising.
   (Section 6-1-1306(1)(e))

Key obligations for your website or eCommerce store

1. Provide a clear and accessible privacy policy

Your privacy notice must include:

• What personal data you collect and for what purposes
• How users can exercise their data rights

Section 6-1-1308(1)(a)

2. Enable opt-out for targeted advertising

Offer a clear and easy mechanism (like a link or toggle) for users to opt out of their data being used for behavioral advertising.

Sections 6-1-1306(1)(e) and 6-1-1309

3. Obtain consent for sensitive data

You must get explicit consent before processing sensitive personal data (e.g., health information, religion, sexual orientation).

Section 6-1-1309(1)(a)

4. Have contracts with data processors

If you work with third-party service providers (like email or analytics tools) that process data on your behalf, you need a formal agreement that meets CPA requirements.

Section 6-1-1305(6)

5. Conduct data protection assessments

For high-risk activities such as profiling or targeted advertising, you must conduct internal risk assessments and document them properly.

Section 6-1-1309(2)

Penalties for non-compliance

Violations of the CPA can result in penalties of up to $20,000 per violation, capped at $500,000 for related offenses.
Section 6-1-112, C.R.S.

How to prepare your website for CPA compliance

1. Audit the data your site collects and stores.
2. Update your privacy policy to reflect CPA consumer rights.
3. Implement a consent manager that includes opt-out functionality.
4. Enable data access, correction, and deletion request forms.
5. Review your contracts with third-party service providers.
6. Assess your risk level and perform data protection assessments if required.

How can Lawwwing help you?

Lawwwing helps digital businesses stay compliant with ease:

• 🔍 Automatic website scans to detect compliance issues
• 📝 Instantly generated privacy policies tailored to CPA requirements
• 🍪 Cookie banners with built-in opt-out for targeted advertising
• 📋 A rights management panel to handle user data requests
• ⚙️ Continuous updates for CPA, CPRA, GDPR, and more

Try Lawwwing now and get your site CPA-ready

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