New U.S. State Privacy Laws: Oregon, Colorado, Utah Shake Up Compliance

As privacy regulation evolves rapidly in the United States, companies of all sizes face a growing and increasingly complex patchwork of state data protection laws. Recent amendments to existing legislation in states like Oregon, Utah, and Connecticut — along with prior changes in Montana and Colorado — have expanded legal obligations, narrowed exemptions, and introduced new protections for sensitive categories like precise location data and children’s data. These shifts underscore a critical reality for corporate privacy teams: data privacy compliance is no longer optional — it’s a business imperative.

In this article, we unpack the latest legislative changes, explain their real-world impacts, and provide actionable strategies to ensure that corporate compliance programs remain robust, defensible, and aligned with legal requirements.

Why Updated Privacy Laws Matter

Unlike the early days of U.S. privacy regulation, when activity was limited to a handful of state statutes, 2025–2026 marks a transition from law formation to law enforcement. Legislatures are not only passing new statutes — they’re revising existing laws to cover more companies and more types of data.

Key trends include:

• Lower compliance thresholds — meaning smaller companies may now fall within the scope of privacy obligations.
• Expanded definitions of “sensitive data” — including categories like precise geolocation and neural data.
• Stronger protections for minors — which may require design changes and age verification processes.
• Broader enforcement authority — including removal of cure periods, narrower exemptions, and more aggressive oversight. Kelley Drye & Warren LLP

These shifts reflect the growing political and regulatory consensus that privacy protections must evolve with technology — especially as data-driven services, AI models, and targeted advertising become ubiquitous.

Key 2026 Privacy Law Changes Across Major States

Here’s a state-by-state breakdown of recent and upcoming amendments that businesses must understand:

Connecticut (CTDPA Amendments – Effective July 1, 2026)

The Connecticut Data Privacy Act is being expanded to include broader definitions of sensitive data — including neural and other emerging data types — and strengthens protections for children’s data rights. These amendments introduce new requirements for data classification and risk assessments tailored to youth-related processing activities.

Impact:
✔ Broader applicability to smaller entities
✔ Additional compliance burden for services accessible to minors
✔ Must conduct youth-specific data protection impact assessments

Oregon (OCPA Amendments – Effective January 1, 2026)

Oregon’s updated privacy law now prohibits the sale of precise geolocation data and includes more stringent restrictions on processing data from consumers under age 16. Crucially, it ends the traditional “cure period” that once allowed companies time to fix compliance gaps after receiving notice of a violation. Universal opt-out recognition is also mandated.

Impact:
✔ Precise location data now classified as sensitive
✔ Online services must honor universal opt-out signals
✔ Fewer opportunities for companies to fix compliance gaps before enforcement

Utah (Digital Choice Act – Effective July 1, 2026)

Utah’s Digital Choice Act introduces data portability and interoperability requirements for social media platforms and other platforms with user-generated content.

Impact:
✔ Platform operators must support social graph portability
✔ New API-based compliance and technical requirements
✔ Greater emphasis on user control over connections and data flows

Montana and Colorado (2025 Amendments)

Both states expanded the scope and applicability of their existing laws — lowering applicability thresholds and narrowing exemptions. Colorado’s changes also enhance protections for minors when data processing presents a “heightened risk of harm.”

Impact:
✔ Smaller companies now subject to privacy obligations
✔ More categories of data covered under sensitive classifications

What’s New in Children’s Privacy Rights

Across numerous states, lawmakers are strengthening protections for minors’ data and online safety. These provisions go beyond traditional federal standards like COPPA (which only applies to children under 13) by:

• Requiring parental consent for data collection from minors up to age 16–18
• Limiting targeted advertising and profiling involving youth
• Imposing age verification and design requirements on platforms that appeal to children

Example: Arkansas’ Children and Teens’ Online Privacy Protection Act imposes strict parental consent obligations for targeted advertising to users under 16 — forcing design changes for apps that include social features.

Comparative Table: 2025–2026 State Privacy Law Changes

State	Key Amendments	Effective Date	Business Impact
Connecticut (CTDPA)	Expanded sensitive data, children’s rights	July 1, 2026	Broader scope, enhanced assessments
Oregon (OCPA)	Bans sale of precise location data	Jan 1, 2026	New sensitive data governance
Utah Digital Choice Act	Data portability & interoperability	July 1, 2026	API and platform changes
Montana	Lowered applicability thresholds	Oct 1, 2025	More businesses covered
Colorado	Enhanced protections for minors	Oct 1, 2025	Stricter data processing limits

Practical Impacts on Corporate Compliance

These legal changes translate into real operational requirements that extend well beyond drafting a new privacy policy. Organizations should expect to:

Conduct Comprehensive Data Mapping

Accurately inventory personal data flows, classify sensitive data, and document processing purposes — including those involving minors and precise geolocation.

Reevaluate Applicability Thresholds

With lower thresholds — especially in states like Montana and Connecticut — companies may suddenly find themselves subject to law where previously they were exempt. Kelley Drye & Warren LLP

Rebuild Consent and Opt-Out Mechanisms

New requirements mean businesses must support universal opt-out signals and manage consent in contexts like targeted advertising, profiling, and cross-state data transfers.

Design Systems for Age-Appropriate Compliance

For services accessible by minors, companies may need to add age gates, parental consent flows, and data minimization logic to avoid unintended violations.

Update Contracts and Vendor Controls

Revised laws often impose obligations on processors and service providers — requiring updated contractual terms and stronger vendor compliance programs.

Real-World Example: Location Data as Sensitive Personal Data

In Oregon, precise location data is now treated as a sensitive category requiring explicit protections. For mobile apps that track location for navigation, advertising, or analytics, this means:

✔ Updating privacy notices
✔ Obtaining explicit consent for precise location data
✔ Ensuring universal opt-out signals are honored
✔ Revising SDK and third-party tracker usage

This reclassification elevates geolocation data from routine processing to high-governance category, significantly increasing compliance responsibilities.

Frequently Asked Questions (FAQs)

Q: Do these privacy laws apply to businesses outside the U.S.?
A: Yes — most state privacy laws apply to any entity that offers goods or services to residents of that state, regardless of where it is located.

Q: What happens if a company fails to comply with these updated laws?
A: Non-compliance can trigger enforcement actions, including fines, corrective mandates, audits, and public enforcement notices by state attorneys general.

Q: Do these state laws replace federal privacy rules?
A: Not currently. In the absence of comprehensive federal privacy legislation like the proposed American Privacy Rights Act (APRA), state laws serve as the de facto standard for corporate privacy compliance.

Compliance as Competitive Advantage

The evolution of privacy regulation in the U.S. is no longer incremental — it’s transformative. Privacy laws are expanding in depth and breadth, covering new categories of data and more companies than ever before. What was once a box-checking exercise has become a strategic imperative that affects product design, marketing, legal posture, and customer trust.

Whether you’re a startup with a mobile app or a global enterprise operating online services, staying ahead of these legal developments isn’t just about avoiding penalties — it’s about building user trust, reducing legal risk, and future-proofing your business.