Colorado Privacy Act written into law

Colorado Privacy Act has been written into law, making Colorado the third US state with comprehensive privacy laws. 

 

The Colorado Privacy Act has recently been signed into law, giving comprehensive privacy laws to the residents of Colorado for the first time. Colorado is now the third US State to enact such laws, with theirs being very similar to those which came before it, with a few key differences. Unlike the California Consumer Privacy Act (CCPA), the CPA has adopted a WPA-like controller / processor approach, instead of a business / service provider perspective. This new law is said to look very familiar to this year’s Consumer Data Protection Act (CDPA) in Virginia, with a slightly broader scope. 

 

The Colorado Privacy Act is intended to apply to businesses trading with Colorado residents acting only in an individual or household context. 

 

The CPA applies to any data controller that conducts business in Colorado, as well as delivers commercial products targeted at the residents of Colorado, that meets the following requirements:

 

  • The business controls or processes personal data of at least 100,000 consumers during a single calendar year.
  • The business derives revenue or receives a discount from the sale of personal data, and processes all controls the personal data for at least 25,000 consumers.

 

According to the CPA, “consumer” refers to a Colorado resident, acting only as an individual or in a household context. This omits individuals acting in a commercial or employment context or a beneficiary thereof, or as a job applicant. Like the CDPA controllers, operating under the CPA do not need to consider employee personal data as applicable under this law.

The CPA applies to the exchange of personal data for monetary or other valuable consideration by a controller to a third party. 

 

Under the CPA, both monetary consideration and any other valuable consideration exchanged for personal data is considered the sale of personal information. Unlike the CDPA, the sale is not only defined by the exchange of monetary considerations. The sale described here excludes several types of disclosures. These include disclosures to a processor that is processing personal data on behalf of a data controller, disclosures to a third party for the purpose of providing a product or service requested by a customer, disclosures to an affiliate of the controller’s, as well as disclosures to a third party as part of a proposed or actual merger, acquisition, bankruptcy or another transaction in which the third party controls some or all of the controller’s assets. 

Deidentified data and publicly available information are not covered by the scope of the CPA’s definition of personal data. 

 

The CPA does not cover any publicly available information or deidentified data. The CPA defines publicly available data as “any information that is lawfully made available from … government records and information that a controller has a reasonable basis to believe the consumer has lawfully made available to the general public.” These are both explicitly excluded from the CPA as is the case with the CDPA. Other exempt data under this law falls under two categories, entity-level exemptions and data-level exemptions. The entity level exemptions are broader and exempt controllers from the need to comply with CPA obligations and rights on data collected, even when the data would otherwise be included. For example the primary entity level exemption under the CPA applies to entities which are already regulated by the Gramm-Leach-Blilet Act for financial institutions. 

 

The Colorado Privacy Act provides five main rights to the consumer. 

The CPA provides five main rights for the consumer. These include the right of access, right to correction, right to delete, right to data portability, and the right to opt out. The right of access gives consumers the right to confirm whether a controller is processing personal data concerning them and the right of access to that personal data. Under the CPA consumers are also given the right to correct inaccuracies in their personal data, taking into account the nature of the personal data and the purpose of the processing. Consumers also have the right to delete their  personal data. According to the right to data portability, consumers must be able to obtain their personal data in a portable and readily usable format which allows them to transmit the data to another entity without hindrance, where technically feasible. The CPA also gives consumers the right to opt out of the processing of their personal data for the purposes of targeted advertising, the sale of personal data, or profiling for decision-making that may produce legal or similarly significant effects concerning them.

 

There are several obligations to be fulfilled by controllers and processors under the CPA. 

 

The CPA imposes several obligations on controllers. These include the duties of transparency, purpose specification, data minimization, care, avoidance of secondary use, avoidance of unlawful discrimination, data protection assessments, data processing contracts, and specific duties regarding sensitive data. The CPA requires a controller to provide consumers with a reasonably accessible, clear and meaningful privacy notice. If their data is sold to a third-party or processed for targeted advertising, the controller will have to clearly and conspicuously disclose the sale of processing as well as give consumers the means to opt out. Controllers must specify the express purposes for which they are collecting and processing personal data at the time of the collection of this personal data. The CPA also institutes a policy of data minimization requiring controllers to only collect personal data that is adequate, relevant and limited to what is reasonably necessary for the specified purposes of the collection and processing. In addition, Data controllers are not allowed to process personal data for purposes that are not reasonably necessary to, or compatible with the specified purposes for which it was collected, neither are controllers allowed to process sensitive data without consent. Data protection assessments and contracts are a necessary part of a controller’s obligations under the CPA. The CPA requires that processing must be governed by a contract between the controller and the processor.

 

Does your company have all of the mandated safeguards in place to ensure compliance with the CCPA, CPA, GDPR, Law Enforcement Directive and Data Protection Act 2018? Aphaia provides GDPR ,Data Protection Act 2018 and comparative law consultancy services, including data protection impact assessments, and Data Protection Officer outsourcing. We can help your company get on track towards full compliance. Contact us today.

 

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