A website privacy policy is a legal statement a business places on its website to inform users of what personally identifiable information (PII) the business collects, and how it complies with privacy laws. Privacy laws govern the collection, use, storage, protection, sharing, and deletion of PII—and the disclosure to consumers of what PII a business has collected about them. Examples of PII include names, addresses, telephone numbers, credit card information, and online user names and passwords. Many states have privacy laws, and these laws vary from state to state.

In Colorado, the regulation of website privacy policies is influenced by both state and federal laws. The Colorado Privacy Act (CPA), which is set to take effect on July 1, 2023, will require businesses to provide clear and accessible privacy policies that inform consumers about the collection, use, and sharing of their personal data. The CPA applies to businesses that control or process the personal data of 100,000 or more Colorado residents or derive revenue from the sale of personal data and process or control the personal data of 25,000 or more Colorado residents. These privacy policies must detail the types of personal information collected, the purpose for collection, how consumers can exercise their rights over their personal data, including the right to opt-out of certain data processing activities. Additionally, businesses must comply with federal laws such as the Children's Online Privacy Protection Act (COPPA) for the collection of information from children under 13, and the Federal Trade Commission (FTC) guidelines for fair information practices. It's important for businesses to regularly review and update their privacy policies to ensure compliance with the evolving legal landscape.