That Act also used to have a cap for damages of US$500,000 for a series of violations, but that was removed in 2019. The CPA offers protections for consumers such as having the ability to control and dictate how their data is used. If one or more of the following points apply to you, then your company needs to comply with the Colorado Consumer Protection Act. In contrast to the CCPA and the VCDPA, it lacks a minimum dollar value of business revenue (according to both the CCPA and the VCDPA, you must earn a minimum of 50% of your revenue from selling personal data). The earlier version of regulations saw this through the lens of a reasonable person. SB 21-190 defines processing that presents a heightened risk of harm to a consumer as including the following: (i) processing personal data for purposes of targeted advertising or profiling. Requests can be denied if the person making the request cant be reasonably authenticated and the person making the request fails to provide adequate additional authentication documentation. The Colorado Privacy Act lists a core set of rights granted to Colorado companies with respect to their personal data: Companies should be transparent about how they manage user data; Companies must take care of users' personal data and their privacy; Companies' compliance and responsibility must be emphasised through data protection assessments. Under certain circumstances consumers over age 13 can be processed without consent. The term refers to information that is linked or reasonably linkable to an identified or identifiable individual. The first two are the California Consumer Privacy Act (CPPA) and Virginia's Consumer Data Protection Act (VCDPA). In his remarks, Weiser outlined that the process to issue rules under the CPA - which was passed in July 2021 and goes into effect in July 2023 - will involve separate stages of feedback from Colorado consumers and businesses before the formal rules are drafted. An estimate of how long the controller may or will maintain the consumers personal data. Overview of Changes to Colorado's Consumer Protection Data Protection LawsWho is impacted by the changes to Colorado's consumer data privacy laws?Any person, commercial entity, or governmental entity that maintains, owns, or licenses personal identifying information ("PII") of Colorado residents in the course of its business, vocation, or occupation. Personal Data Whats the difference?) The CPA and CDPA include a duty of data minimization, requiring controllers to limit data collection based on reasonableness and relevance. It gives them certain rights over their personal data, including making inquiries or requests to data controllers or data processors about it. Success! Sensitive data also includes data of a . Some of the rights in CPRA may not apply in an employment context, notes Buck. The right to correct inaccurate personal data held about them by the organization; The right to opt out of the sale of their personal data and to opt out of targeted advertising online; The right not to have "sensitive personal data" processed unless the organization has the consumer's clear, specific, opt-in consent Something is wrong with your submission. Include the specific purpose of the processing, procedural safeguards, names and categories of third-party recipients of personal data and risks to consumers. Oops, something is wrong with the URL. Please check again. If the entity collecting the personal information or the personal information collected is already covered by certain industry laws, such as the Children's Online Privacy Protection Act or the Family Educational Rights and Privacy Act; If the personal information has been collected for purposes of law affecting Colorado health insurance; If personal data has been de-identified or pseudonymised; If personal data is used for employment documentation purposes. 30 Bill 6-1-1303(23)(b). As noted, businesses that dont meet the number of residents whose data is processed annually, or the revenue threshold, are exempt. Duties for Controllers. Companies meeting the requirements and doing business via website or app are also required to comply. How Nonprofits Can Prepare for the Colorado Privacy Act Further, controllers have a duty to clearly and expressly explain to consumers the purpose for collecting personal data. Colorado Privacy Act becomes law - International Association of Privacy 13 Bill 6-1-1306(1) The law defines a processor as a person or entity that processes personal data on behalf of a controller. Data Protection Intensive: France These measures must be compatible with the datas scope, volume, and nature. Colorado Privacy Act CPA Rules Drafted by Attorney General The Colorado Privacy Act defines personal data as information that is linked or reasonably linkable to an identified or identifiable individual. Like HIPAA protected health information, personal data does not include de-identified information or publicly available. As always, we recommend consulting qualified legal counsel for companies specific data privacy compliance needs. Nevertheless, important distinctions in handling sensitive data, consumer-facing obligations and data management will require attention as companies harmonize their privacy practices under various . Do you want to know more about data privacy and consent management? . Its not a question of no longer collecting data. Personally identifiable information is among the types of data protected by the Colorado Privacy Act. Under the Colorado Privacy Act, de-identified data means data that do not identify an individual with respect to which there is no reasonable basis to believe that the information can be used to identify an individual. Its contents are not a significant departure from Californias and Virginias laws, so prior compliance with other state-level or international privacy law will have done most of the heavy lifting for CPA compliance. Colorado Attorney General's Office Issues Draft Colorado Privacy Act What is the relationship between the consumer and the business? The CPRA introduces a number of concepts not enumerated in the CCPA: Importantly, the CPRA has expanded consumer rights including correction, opt-out of automated decision-making, access to information about automated decision-making, and restricting the use of sensitive personal information. However, unlike California's laws, there is not a private right of action within the CPA. Data collection and use should be reasonable and proportionate., Consent for the collection and use of that data must be obtained, Enhanced notices on your privacy pages and at points of collection must be provided, Assessments for risky behavior and for sharing data with third parties and service providers are required, Contracts with third parties and service providers must obligate them to upholding CPRA when processing data. Conducting business in Colorado does not imply that a company has a physical presence or is headquartered in the state. Businesses must refresh sensitive data annually and other data at undefined time periods. Under the Act a data controller is a person that, alone or jointly with others, determines the purposes for and means of processing personal data. The Colorado Privacy Act - What the Draft Rules Say About Consent A formal Notice of Proposed Rulemaking is anticipated by this fall with final . The Colorado Attorney Generals Office will enforce the Colorado Privacy Act. The principle of comparative fault may apply when several controllers or processors are involved in the same violation. Under the CPA, violations would be subject to civil penalties under the Colorado Consumer Protection Act (C.R.S. Similar to these other state data privacy laws, entities operating in Colorado should consider the following framework in assessing compliance obligations under the Colorado Privacy Act: Although the Colorado Privacy Act fits within the general compliance approach applicable to the California and Virginia privacy laws, there will inevitably be certain compliance aspects among these state laws that will require consideration on an individual state basis. Interestingly, the CPA does not specify fines for violations. Colorado Privacy Act Becomes Law - Compliancy Group The classic example is that if someone tells a company that they keep a certain religious diet, the company can infer from that information a sensitive data category (e.g., religious beliefs). Also similar to the VCDPA, the CPA requires businesses to obtain consumer consent prior to collecting and/or processing "sensitive data." Sensitive data, a subset of personal data, includes multiple categories of information, such as children's data, genetic or biometric data, precise geolocation. You can be punishable by civil penalties of up to $2,000 if you violate the CPA and they can reach a maximum penalty of $500,000 for related violations. Clearly state that they are available to Colorado consumers, Provide access to all data rights available under CPA, Provide a clear explanation of how to exercise consumer rights. 2021 Colorado Privacy Act Passes and Heads to Governor for Signature Colorado Privacy Act Draft Rules Published | Byte Back 97% of companies have seen benefits like a competitive advantage or investor appeal from investing in privacy (Cisco 2019 Consumer Privacy Survey). (24) "sensitive data" means: (a) personal data revealing racial or ethnic origin, religious beliefs, a mental or physical health condition or diagnosis, sex . 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