Among the various requirements under US state comprehensive privacy laws, those that relate to loyalty programs may be some of the most confusing. Only three states — California, Colorado and Florida — regulate these programs. How they do this varies, and the level of detail contained in the laws also varies. In California and Florida, the laws’ impact on loyalty programs is in how they define “financial incentives.” These are times when a company “pays” a consumer for their personal information. This might occur with a straight cash payment. More common though, is optimized pricing or providing a higher quality of services in exchange for getting personal information. For those who offer loyalty programs, depending on how they are operated, they may viewed as be financial incentives under these laws. Colorado’s comprehensive privacy law, on the other hand, imposes obligations on companies that operate “bona fide loyalty programs.” These are defined as programs where information is processed solely to provide the program’s benefits. Benefits must be -like in California- better pricing or quality of services.Continue Reading The Comprehensive Privacy Law Deluge: Impact on Loyalty Programs

When thinking about privacy notice obligations, companies often -incorrectly- leap to the wording in their privacy policies. The new comprehensive state privacy laws are a reminder that notice obligations are a bit broader than mere privacy policies. To the extent that these laws apply to your organization (see our prior applicability post) there are some notice-related obligations to keep in mind.Continue Reading The Comprehensive Privacy Law Deluge: Approaching Notice Obligations

Of the many worries on privacy compliance teams’ lists as we face the onslaught of state “general” privacy laws are the impacts they have on vendor contracts. Fortunately for those who have already had to deal with contracts with vendors (service providers, processors) in California or EU’s GDPR, the impact should be fairly minimal.Continue Reading The Comprehensive Privacy Law Deluge: Updating Vendor Contracts

With a little less than a week before the next US state “comprehensive” privacy laws (Colorado and Connecticut) go into effect, many are reviewing existing practices. One that keeps coming up is the concept of “profiling.” As a reminder, we now have 11 states with comprehensive privacy laws: California, Colorado, Connecticut, Florida, Indiana, Iowa, Montana, Tennessee, Texas, Utah, and Virginia.Continue Reading The Comprehensive Privacy Law Deluge: What to Do About “Profiling”

Colorado’s Privacy Act regulations have now been finalized, in advance of the law’s July 1 effective date. As we have written previously, the Colorado privacy law applies to companies that conduct business in the state and either (1) control or process personal data of 100,000 Colorado consumers during a calendar year, or (2) derive revenue or receive a discount on the price of goods or services from the sale of personal data and processes or controls the personal data of at least 25,000 Colorado consumers. The law mirrors in many ways the comprehensive privacy laws of other states.Continue Reading Colorado Privacy Law Regulations Finalized: Time to Review Information Practices

The Colorado AG’s office recently released pre-rulemaking considerations for the Colorado Privacy Act (CPA). The office is seeking informal public feedback on a series of topics. While the AG listed eight specific topics for feedback, the public can offer input on any aspect of the upcoming rulemaking. The AG’s office is interested in comments about the universal opt-out, the requirements around consent, and “dark patterns.” The AG is also interested in circumstances triggering data protection assessments and the requirements around profiling. Questions were also posed about “offline” collection of data. Lastly, the office seeks feedback to the rules around opinion letters and about how CPA compares or contrasts to privacy laws in other jurisdictions.
Continue Reading Colorado AG Seeks Input on Key Aspects of Upcoming Privacy Act

The Colorado AG recently issued guidance on practices companies should consider to safeguard consumer data. This guidance was issued in response to companies asking what “reasonable” security means. While noting that the standard is a flexible one and calls for case-by-case determinations, the AG highlighted activities it will weigh when making a decision on whether companies are acting reasonably to safeguard information.
Continue Reading Colorado AG Issues Guidance on Data Security Best Practices

Colorado recently joined Virginia and California in passing a more comprehensive privacy law. The Colorado Privacy Act (CPA) will go into effect July 1, 2023. This is six months after Virginia’s law (CDPA) and California’s Privacy Rights Act (CPRA), which amends the existing CCPA, go into effect. The law does not have a private right of action, and the AG is to adopt regulations on certain aspects by July 1, 2023.
Continue Reading And Then There Were Three: Colorado Passes Privacy Law, Effective July 2023