The Colorado Privacy Act (CPA) is a landmark data protection law that gives Colorado residents enhanced control over their personal information and sets clear rules for businesses that collect and use that data. Enacted in July 2021 and effective from July 1, 2023, the CPA places Colorado among the leading U.S. states with comprehensive privacy legislation, alongside California and Virginia.
Understanding the CPA: What It Means for You
The CPA aims to improve transparency and accountability in the way organizations handle personal data. It introduces key principles such as:
- Respect for consumer privacy rights,
- Clear limits on data collection and usage,
- Requirements for consent when processing sensitive data,
- Responsibilities for both data controllers and processors.
Inspired by global frameworks like the GDPR, the CPA strikes a balance between protecting consumers and enabling innovation.
Who Needs to Follow the CPA?
The CPA applies to organizations — regardless of their physical location — that:
- Conduct business in Colorado or target products/services to Colorado residents, and
- Either control or process personal data of 100,000+ consumers annually, or
- Derive revenue or receive a discount from selling personal data of 25,000+ consumers.
It applies to for-profit entities and excludes nonprofits, government agencies, and organizations handling data solely in a commercial or employment context.
Your Rights as a Colorado Consumer
Under the CPA, individuals in Colorado gain greater control over how their personal data is handled. These rights include:
- Access: See what personal data a business holds about you,
- Correction: Fix inaccurate personal information,
- Deletion: Request that your data be erased,
- Portability: Receive a copy of your data in a usable format,
- Opt-out: Say no to targeted advertising, the sale of personal data, profiling that affects legal or similar outcomes.
Businesses must respond to consumer requests within 45 days and provide a simple appeals process if requests are denied.
What Happens If a Business Breaks the Rules?
The CPA is enforced by the Colorado Attorney General and district attorneys. Non-compliance may lead to:
- Fines of up to $20,000 per violation, with a cap of $500,000 for related violations,
- A 60-day cure period to resolve issues (available until January 1, 2025).
Note: The CPA does not allow individuals to sue businesses directly — only state authorities can enforce the law.
Does the CPA Only Apply in Colorado?
Not at all. The CPA applies to any business that processes data of Colorado residents, even if that business is based in another state or country. If your business markets to or serves people in Colorado and meets the data thresholds, you must comply with the CPA — regardless of your physical location.
How Consentise Makes CPA Compliance Easier
Consentise helps your organization meet the demands of the Colorado Privacy Act by offering:
- Smart consent banners and customizable privacy notices,
- Built-in tools for universal opt-outs and user rights management,
- Easy workflows for data access, correction, and deletion requests,
- Transparent tracking of user preferences and consent logs,
- Support for identifying and managing sensitive data responsibly.
With Consentise, you can build trust with Colorado users and stay compliant — without the complexity.