# Notify consumers and explain adverse consequential decisions

- **Record type**: Obligation
- **Instrument**: Colorado Senate Bill 24-205: Consumer Protections for Artificial Intelligence (Colorado AI Act)
- **Jurisdiction**: Colorado (United States)
- **Category**: transparency
- **Binding**: Yes
- **Provision**: C.R.S. 6-1-1703(4)

## In brief

Notify consumers and explain adverse consequential decisions is a legal requirement under the Colorado AI Act in Colorado (United States) (C.R.S. 6-1-1703(4)). Before a high-risk system makes a consequential decision, deployers must notify the consumer that AI is used, describe its purpose and nature, and provide contact and opt-out information where applicable.

## What the duty requires

Before a high-risk system makes a consequential decision, deployers must notify the consumer that AI is used, describe its purpose and nature, and provide contact and opt-out information where applicable. After an adverse decision they must state the principal reasons, the data used and its sources, and offer an opportunity to correct data and to appeal for human review where feasible.

## What an organisation does about it

Add pre-decision AI notices and an adverse-decision explanation and appeal workflow.

## Controls that meet this duty

- AI interaction and use disclosure notices (satisfies): https://aipolicytracker.org/controls/ai-interaction-and-use-disclosure
- Decision explanation, human review and appeal route (satisfies): https://aipolicytracker.org/controls/decision-explanation-and-appeal-route

## Parent instrument

- Colorado Senate Bill 24-205: Consumer Protections for Artificial Intelligence (Colorado AI Act)
  - Record: https://aipolicytracker.org/policies/us-colorado-ai-act
  - Context file: https://aipolicytracker.org/policies/us-colorado-ai-act.md

## Provenance

- **Permanent id**: AIPT-OBL-0086 (https://aipolicytracker.org/id/AIPT-OBL-0086; never changes or gets reused)
- **Record page**: https://aipolicytracker.org/obligations/us-colorado-consumer-notice-and-adverse-decision-explanation
- **Official source**: https://leg.colorado.gov/bills/sb24-205
- **Provision**: C.R.S. 6-1-1703(4)
- **Review status**: pending review
- **Confidence**: medium
- **Facts last confirmed**: never confirmed against the official source
- **Retrieved**: 2026-10-27
- **Licence**: https://creativecommons.org/licenses/by/4.0/
- **Cite as**: AIPolicyTracker (2026). "Notify consumers and explain adverse consequential decisions (Colorado AI Act)" [AIPT-OBL-0086, not yet verified]. https://aipolicytracker.org/id/AIPT-OBL-0086 (accessed 27 October 2026).

> This record is a structured summary with a link to the official text. It is not legal advice. Open the official source before relying on any date or duty. How current each record type must be is published at https://aipolicytracker.org/verification; what a record must carry at all is published at https://aipolicytracker.org/coverage.