Colorado 2025: Teen Privacy Rules Meet Cannabis E‑Commerce—Consent, Profiling Limits, and Universal Opt‑Out

Colorado Privacy Act Minors 2025 & Cannabis: What Retailers and E‑Commerce Must Know

With major amendments to the Colorado Privacy Act (CPA) coming into force in October 2025, cannabis and hemp retailers—especially those operating online—face a new era in cannabis compliance. The overhaul notably expands privacy protections for minors, raises the bar for consent, and ushers in robust requirements for profiling, behavioral advertising, and universal opt-out mechanisms. Colorado’s new rules signal a growing nationwide reckoning with youth privacy and digital commerce.

This deep dive unpacks what the new CPA standards mean for cannabis e-commerce, in-store digital programs, and related customer engagement in Colorado. The focus: the impact of the law’s new “minors” definition, core compliance moves for dispensaries, and practical steps to avoid enforcement sweeps as state attorneys general coordinate cross-state crackdowns in 2025–2026.

The 2025 CPA Amendments: Shifting the Landscape for Minors’ Data

Colorado’s 2025 amendments to the CPA, including SB 24-041, are among the broadest state privacy updates this decade:

• Expanded Definition of Minors: Protections previously limited to children under 13 now cover any consumer under 18.
• Elevated Consent Standard: Affirmative opt-in consent is now required from under-18s (or a parent/guardian for children under 13) before their data can be used for targeted advertising, profiling, engagement-driven design, or data sales.
• Broader Controller Obligations: Even businesses not otherwise subject to CPA scope due to data volume must comply with the new minors’ provisions when knowingly processing data from under-18s.

Effective date for minors’ rules: October 1, 2025. See detailed AG overview.

Key Enforcement Takeaway

The CPA’s new minors’ rules are not just for tech giants—retailers and e-commerce cannabis operators must review practices for age verification, behavioral marketing, and programmatic offers now. The amendments explicitly override the typical data volume threshold for CPA applicability.

What Consent and Profiling Limits Mean for Cannabis Retailers

Who Must Get Opt-In Consent?

Any controller (operator or processor) of cannabis or hemp e-commerce, online loyalty, or digital marketing platform serving Colorado consumers must obtain opt-in consent before:

• Serving targeted ads to known or suspected minors
• Selling or otherwise exchanging a minor’s personal data
• Utilizing profiling or algorithmic features to segment minors
• Designing web/app features to boost engagement among minors (e.g., push notifications, gamification, infinite scroll features)

Consent for those under 13 must come from a parent or legal guardian. For those 13–17, the minor can provide affirmative consent themselves.

Data Protection Assessments

If you operate an online service or website and you know (or willfully disregard whether) a user is under 18, Colorado’s CPA requires a formal data protection assessment for any feature, campaign, or system creating a “heightened risk of harm.” This includes:

• Behavioral advertising
• Geofenced or location-based offers
• Loyalty or retargeting programs that include minors

Read Goodwin’s rule summary for an overview.

Age Verification—and Avoiding Sensitive Data Overcollection

Cannabis businesses must walk a fine line: strong enough age verification to prevent under-18 access, yet not so intrusive as to create unnecessary data risks or violate privacy. Under the new CPA rules, simply collecting an ID or birth date is no longer enough if you retain or otherwise use that data carelessly.

Best practices include:

• Use just-in-time prompts for age gating and only capture the minimal data needed for each transaction.
• Avoid storing full IDs; instead, verify age and discard information after the session when possible.
• Ensure your privacy policy and user interface clearly explain age checks, what data is collected, and for how long.
• Train staff and review vendor contracts to limit downstream data use or sharing.

For more, review cannabis age-verification guides.

Universal Opt-Out Mechanisms: Are You Ready?

From July 1, 2024, Colorado requires businesses to honor the so-called universal opt-out mechanism, like the "Global Privacy Control" browser signal. By October 2025, compliance is mandatory even for minor consumers.

• If a browser extension or device signal sends an opt-out request, retailers and e-commerce must promptly honor it for all users, including minors.
• This applies not only to data sales but also to profiling and behavioral advertising.

The outcome: Any loyalty, retargeting, or personalized experience that continues despite a universal opt-out signal puts your business at heightened enforcement risk.

More info: See overview at FRB Law’s compliance playbook.

Rapid Retrofit: PDPs, Cookie Banners, and Geofenced Offers

With new rules taking effect—and enforcement sweeps expected as early as Q4 2025—retail and online cannabis operators must rapidly adjust their digital operations.

Privacy Disclosures (PDPs)

• Update privacy disclosures to specify how and why data from minors is processed.
• Clearly explain opt-in requirements and provide easy-to-use consent flows.
• Add specific language on targeted advertising, profiling, and sale/sharing of data from minors.

Cookie Banners

• Refresh cookie/pop-up banners to ensure no cookies or tracking commence for minors before affirmative consent.
• Default settings for users under 18 should be “tracking off.”
• Provide instant ways for minors (and guardians) to change or withdraw consent.

Geofenced Offers & Loyalty Programs

• Adjust geo-offers so they never target or incentivize under-18s.
• Limit retargeting and loyalty communications to authenticated adults only.
• Routinely scrub databases and campaign segments to exclude those flagged as minors.

Readiness for Enforcement

Colorado has signaled it will participate in multi-state enforcement with California, Connecticut, and others, targeting industries where minors’ data or behavioral targeting are most prevalent. Dispensaries and e-commerce platforms are a likely focus. Expect coordinated audits and surprise sweeps—especially for persistent violators or those lacking documented compliance processes.

Summary: Key Steps for Colorado Cannabis & Hemp Businesses

• Conduct a privacy audit of all data collection involving minors, with special attention to loyalty, referral, and online purchase flows.
• Retrofit user interfaces and policies to require opt-in for all data processing involving those under 18.
• Integrate or upgrade universal opt-out response mechanisms, including for minors, by Fall 2025.
• Limit age verification data to the minimum required, and never use age data for other marketing, profiling, or sharing activities.
• Prepare for state AG enforcement sweeps—document evidence of compliance and train staff on responding to data subject and opt-out requests.

Bottom line: Colorado’s 2025 CPA updates push dispensaries and cannabis e-commerce into the frontlines of youth privacy protection. Retailers equipped with robust opt-in systems, adaptive privacy banners, and strong data minimization will not only comply with the law but build trust with a privacy-aware consumer base.

For the latest guidance and compliance checklists, tap into CannabisRegulations.ai—your go-to resource for cannabis privacy, compliance, and regulatory updates across Colorado and beyond.