By Sophia Nguyen, Technology and Policy Correspondent
August 28, 2025
Colorado’s groundbreaking children’s privacy legislation, set to take effect on October 1, 2025, is poised to reshape the landscape of online regulation in the United States. Senate Bill 24-041 (SB 24-041), signed into law by Governor Jared Polis on May 31, 2024, amends the Colorado Privacy Act (CPA) to introduce robust protections for minors under 18, signaling a broader shift toward stricter state-led data privacy standards. As companies scramble to comply, experts and posts on X suggest this framework could become a blueprint for national regulation, influencing how businesses handle children’s data across the digital ecosystem.
A New Standard for Minors’ Data Protection
Unlike the broader CPA, which applies to businesses meeting specific revenue or data-processing thresholds, SB 24-041 casts a wider net, targeting any entity offering online services, products, or features to Colorado residents, regardless of size or revenue. This expansive scope, modeled after Connecticut’s SB 3, reflects a growing recognition of minors as a vulnerable group in the digital age. The law introduces several key obligations for data controllers—entities that determine how and why personal data is processed:
- Duty of Care: Controllers must exercise reasonable care to avoid heightened risks of harm to minors, such as unfair treatment, financial or reputational injury, or privacy intrusions.
- Data Protection Assessments: For services posing a “heightened risk of harm,” controllers must conduct and periodically review data protection assessments, retaining documentation for three years.
- Consent Requirements: Without affirmative consent from a minor (or parental consent for those under 13), controllers are barred from processing minors’ data for targeted advertising, data sales, profiling with significant effects, or purposes beyond what’s disclosed at collection. Precise geolocation data collection is also restricted unless necessary for the service.
- System Design Restrictions: Controllers cannot use design features that “significantly increase, sustain, or extend” a minor’s engagement (e.g., autoplay or gamified elements) without consent, aiming to curb addictive behaviors.
The law clarifies that controllers are not required to implement age verification or age-gating systems, but those using “commercially reasonable age estimation” are not liable for errors. Enforcement falls to the Colorado Attorney General and district attorneys, with a 60-day cure period for violations, set to expire on December 31, 2026.
Why Colorado’s Law Matters
Colorado’s legislation builds on the federal Children’s Online Privacy Protection Act (COPPA), which governs data practices for children under 13, by extending protections to teens up to 17. This broader age range aligns with a national trend, as states like Vermont, Nebraska, and Maryland have passed similar laws in 2025, while California’s Age-Appropriate Design Code faces legal challenges. The Colorado Department of Law’s proposed rules, open for public comment until September 10, 2025, further clarify terms like “willful disregard” of a user’s age, citing indicators such as profile information, parental reports, or marketing directed at minors.
The law’s focus on addictive design features addresses growing concerns about social media’s impact on youth mental health. A 2024 Pew Research study found 60% of teens report difficulty disengaging from platforms due to features like infinite scroll, a concern echoed in posts on X. One user wrote, “Colorado’s new law tackling addictive algorithms is a game-changer. Kids deserve protection from Big Tech’s manipulation.” Another cautioned, “This could set a precedent, but will it survive industry pushback?”
Implications for Businesses
The amendments pose significant compliance challenges, particularly for tech, social media, AdTech, and EdTech firms. Companies must evaluate their services for “minor-oriented” features, conduct risk assessments, and streamline consent processes. The law’s prohibition on prolonged data retention and targeted advertising without consent could disrupt revenue models reliant on behavioral analytics. As noted in a National Law Review article, businesses may need to redesign platforms to disable engagement-driven features by default, with opt-in mechanisms for minors.
The Colorado Attorney General’s Office is actively seeking public input to refine these rules, with a hearing scheduled for September 10, 2025. Industry experts, like those at Baker Donelson, warn that non-compliance could lead to enforcement actions, though the lack of a private right of action limits consumer lawsuits. Companies are also grappling with the law’s “knowledge standard,” which holds controllers accountable if they “willfully disregard” a user’s minor status, potentially requiring new data governance strategies.
A Harbinger for U.S. Regulation
Colorado’s proactive approach reflects a broader state-level push to fill gaps in federal privacy laws, which have lagged behind global standards like the EU’s GDPR. The CPA’s amendments, alongside its biometric data rules effective July 1, 2025, position Colorado as a leader in privacy innovation. Legal analysts at Goodwin note that states like California, Connecticut, and New York are following suit, creating a patchwork of regulations that may pressure Congress for a unified federal framework.
However, legal challenges loom. Similar laws, like California’s Age-Appropriate Design Code, have faced First Amendment objections, as seen in NetChoice, LLC v. Bonta (2023). Colorado’s inclusion of a free speech disclaimer may mitigate such risks, but industry pushback is expected. Posts on X highlight the tension, with one user stating, “Colorado’s kids’ privacy law is bold, but Big Tech will fight tooth and nail to weaken it.”
Looking Ahead
As the October 1 deadline approaches, businesses must act swiftly to align with SB 24-041’s requirements. Conducting data protection assessments, updating privacy policies, and fostering employee training on consent workflows are critical steps. The law’s emphasis on ethical system design and transparency could inspire other states, potentially shaping a national standard for protecting minors online.
Colorado’s framework signals a future where user trust and safety take precedence in digital spaces. As one X user put it, “Colorado’s leading the charge to protect kids online. This is what regulation should look like.” With public and regulatory momentum growing, the U.S. may be on the cusp of a new era in online privacy—one where children’s data is fiercely guarded, and businesses must adapt to a more accountable digital world.
Sources: Colorado General Assembly, National Law Review, Goodwin Law, Baker Donelson, Lexology, posts on X
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