PRIVACY IN THE DIGITAL ERA: LEGAL RESPONSES TO TECHNOLOGICAL DISRUPTIONS BY - NAMRATA N WAGHMARE & PRAJAKTA PIMPALSHINDE
PRIVACY IN
THE DIGITAL ERA: LEGAL RESPONSES TO TECHNOLOGICAL DISRUPTIONS
AUTHORED BY - NAMRATA N WAGHMARE
& PRAJAKTA PIMPALSHINDE
Abstract:
The advent of the internet has revolutionized access to information,
empowering individuals to explore new
ideas, practices, and perspectives with unprecedented ease However, these technological advancements have also introduced significant privacy challenges. The pervasive mining
of private information for unethical and illegal purposes has raised serious concerns regarding security breaches,
identity theft, and unauthorized governmental surveillance. Moreover, the ethical implications of
data practices employed by social media platforms have come under scrutiny, highlighting the tension between innovation
and privacy protection. As human beings inherently value their privacy
and seek to maintain control
over personal information, the increasing vulnerability
of private data posed by modern information technology has underscored the need for robust legal frameworks. This
article explores the evolving legal landscape of privacy in India, examining
the intersection of privacy rights with the rapid development of science and technology. It
underscores the importance of balancing innovation with the protection of
personal privacy, and the ongoing efforts to establish a robust legal framework
that adequately addresses the challenges posed by the digital
age.
Key words: Information, technology, security
breach, identity theft,
privacy rights.
Introduction:
Technology has had a profound impact on many aspects of our lives, mainly
privacy. The growth of the internet
and the widespread use of digital devices have made it simpler for individuals
and organizations to share and access
information[1].
However, this increased connectivity has also led to new privacy
and security concerns.
In this article we’ll see how technology has affected privacy
rights, why it is important to protect the privacy and what are existing
legal framework to combat the issue and what other legal remedies could
be introduced. One of the most significant effects of technology on privacy is the extensive
collection, storage, and sharing of personal information online. As people increasingly use social media, online shopping, and other digital
platforms, they willingly share personal information like
their name, address, phone number, and credit card details. Companies use this data for targeted
advertising, data mining, and various other purposes.
However, this same information can be exploited by hackers and malicious
actors, leading to identity theft,
fraud, or other crimes. The advancements in data analytics and machine learning have further increased
these concerns. Organizations and individuals must take steps to secure their personal and sensitive
information and be aware of the laws and regulations that govern privacy
and cybersecurity.
At the core of this study the key question is how well do the current
legal frameworks in India tackle the
complex challenges presented by the fast-evolving field of digital privacy and
data protection? This research seeks
to comprehensively examine the
existing legal frameworks, scrutinize their efficacy, and propose recommendations for potential enhancements[2]. Moreover,
it aims to stimulate thoughtful discussions on shaping
a more resilient framework for digital
privacy and data protection
in the country, considering the implications of The Digital Personal Data Protection Act, 2023. Policymakers can
benefit from informed recommendations to enhance legislative frameworks, businesses can adapt strategies to ensure compliance with evolving regulations, and individuals can better understand and advocate for their digital
rights. In navigating this research, the goal is not
only to analyze the existing state of affairs but also to contribute proactively to the ongoing dialogue
surrounding the challenges posed by the digital age.
Evolution
of Privacy Concerns in the Digital Age
Emerging technologies, such as Artificial Intelligence (AI), have a
profound impact on digital privacy.
AI’s advanced data processing and analysis capabilities can enhance service
delivery and generate valuable insights. However, these same capabilities can also be used to scrutinize personal
data for profiling and decision-making without sufficient human
oversight, potentially violating individual
privacy without consent. Thus, AI represents both a significant opportunity and
a potential threat to digital
privacy, necessitating the development of strong privacy policies to regulate its use.
Similarly, data analytics—while powerful in providing
insights into user behaviours and improving
service personalization—can pose risks to privacy if not managed properly.
Extensive data collection and
analysis may infringe on individual privacy rights unless accompanied by practices such as data minimization and
anonymization. Balancing the benefits of data analytics with privacy considerations is crucial[3].
As technology continues to evolve, individuals must remain informed about
these changes and their privacy
implications. This includes understanding the privacy policies of digital
services, utilizing privacy
tools and settings,
and keeping systems
updated to address
any technical vulnerabilities.
The integration of Internet of Things (IoT) devices into everyday
life introduces significant privacy concerns. These devices collect, process, and transmit large amounts of potentially sensitive
data, which can lead to privacy breaches if not properly secured. Users
should be vigilant about the security settings
and data management practices
of their IoT devices.
Finally, advancements like facial recognition technology pose serious challenges to digital privacy
norms. While offering
potential benefits for security and access control,
they raise concerns
about the loss of anonymity
in public spaces and the potential for misuse in surveillance. This highlights the urgent need for legal and ethical
guidelines to regulate the use of such powerful technologies in a privacy-conscious era. Encryption
plays a pivotal role in strengthening digital privacy. It involves encoding information such that
only authorized parties can access it. By leveraging encryption technologies, users can ensure that even if their data is intercepted, it remains unreadable and thus, safe. Encryption is extensively used in protecting sensitive data transmission and storage, including in email services, messaging apps, and
cloud storage, thereby enhancing individual digital
privacy.
Technological Innovations and Their Impact on Privacy
(i) Internet
A major theme in the discussion of Internet privacy revolves around the
use of cookies[4].
Cookies are small pieces of data that web sites store on the user’s computer, in order to enable personalization of the site. However, some
cookies can be used to track the user across multiple web sites (tracking cookies), enabling for example advertisements
for a product the user has recently
viewed on a totally different site. Again, it
is not always clear what the generated
information is used for. Laws requiring user consent for the use of
cookies are not always successful in
terms of increasing the level of control, as the consent requests interfere
with task flows, and the user may
simply click away any requests for consent. Similarly, features of social network sites embedded in other sites
(e.g. “like”-button) may allow the social network site to identify
the sites visited by the user.
(ii)
Cloud Computing
The rise of cloud computing has intensified privacy concerns. Previously,
user data and programs were stored
locally, limiting access to data and usage statistics by program vendors. With
cloud computing, both data and
programs are hosted online, creating uncertainty about how user- generated and system-generated data are
utilized. Additionally, the global nature of cloud storage complicates the identification of
applicable laws and the authorities that can access the data. This issue is especially pronounced with data
collected by online services and apps, such as search engines and games,
where it is often unclear which data is collected and how it is communicated.
Users frequently face limited choices, sometimes having no option but to
use the application without full transparency on data handling.
(iii) Social Media
Social media platforms present unique privacy challenges. The issue
extends beyond merely restricting
access to information; it involves addressing the moral implications of
encouraging users to share
extensive personal data. Social networks
often prompt users to provide more data to enhance their profiles and increase site value, creating
a temptation to exchange personal
information for service benefits. Users may be unaware of the full
extent of data they are sharing, as
seen with features like the "like" button. Simply limiting access to
this information doesn't address the
root problem; instead, efforts should focus on guiding user behaviour regarding
data sharing.
One approach to reducing the temptation to share is implementing strict
default privacy settings. While this
can limit access for other users, it doesn’t necessarily restrict the service
provider’s access. Such measures may
also impact the functionality and benefits of social networking sites. An alternative is adopting an opt-in
approach, where users must actively choose to share data or subscribe to services, potentially leading to more acceptable outcomes. However, the effectiveness of this
approach depends significantly on how the options
are presented to users[5].
(iv) Big Data
Users generate loads of data when online. This is not only data
explicitly entered by the user, but also
numerous statistics on user behaviour: sites visited, links clicked, search
terms entered, etc. Data mining can
be employed to extract patterns from such data, which can then be used to make decisions about the user. These may only affect the online experience (advertisements shown), but, depending on which parties have access to
the information, they may also impact the user in completely different contexts. In particular, big data may be used in profiling the user (Hildebrandt 2008), creating patterns of typical combinations of user
properties, which can then be used to predict interests
and behaviour. An innocent application is “you may also
like …”, but, depending on the available data, more sensitive
derivations may be made, such as most probable religion or sexual preference. These derivations could then in turn lead to inequal
treatment or discrimination. When a user can be assigned to a particular group, even only
probabilistically, this may influence the
actions taken by others. For example, profiling could lead to refusal of
insurance or a credit card, in which case profit is the main reason for discrimination. When such decisions are based on profiling,
it may be difficult to challenge them or even find out the explanations behind
them. Profiling could
also be used by organizations or possible future
governments that have discrimination of particular groups on their political agenda,
in order to [6]find their
targets and deny them access to
services, or worse.
(v)
Mobile Phones
As networked devices like smartphones become more common, they increasingly
collect and transmit data through
various sensors, such as GPS,
movement sensors,
and cameras. GPS sensors can track precise
locations, while even without GPS, approximate locations can be determined via wireless
networks. This location data, linking the online and physical worlds, can pose
privacy risks like stalking or
burglary. Cameras on these devices can also capture private images, raising concerns
about user awareness and control. While some devices
indicate camera activation with a light,
this can be manipulated by malicious software.
Overall, the privacy
implications of reconfigurable technology[7] hinge on users'
awareness of how their
data is managed and used.
(vi)
The Internet of Things
Devices connected to the Internet extend beyond user-owned gadgets like
smartphones to include a wide range of Internet
of Things (IoT) devices. These include RFID chips in passports and public transport systems, which can leak data
such as nationality, and "dumb" RFIDs in products that could trace individuals. In homes,
smart meters and connected
appliances generate data on electricity
use, water consumption, and environmental preferences, potentially enabling
profiling and monitoring. As more
household devices become interconnected, privacy concerns grow, particularly regarding data collection,
user autonomy, and transparency. Users must be aware of features like microphones in connected devices
and how their data is handled.
(vii)
E-Government
Government and public administration have undergone radical
transformations as a result of the availability
of advanced IT systems as well. Examples of these changes are biometric
passports, online e-government
services, voting systems, a variety of online citizen participation tools and platforms or online access to recordings of
sessions of parliament and government committee meetings. In
elections, information technology
impacts voter privacy throughout the voting process[8].
Secret ballot requirements aim to prevent vote buying and coercion, demanding
that voters keep their choices
private. While polling stations can enforce this privacy, mail-in and online voting are more vulnerable to breaches of confidentiality since privacy cannot
be guaranteed technologically, and voters might be observed
during the process.
Information technology influences how voters maintain this privacy and how authorities can verify it.
E-democracy initiatives could reshape privacy in politics. Additionally, online
platforms and social
media can compromise privacy by enabling targeted misinformation and
behavioural profiling, making it harder to protect preferences and increasing the risk of
opinion manipulation.
(viii)
Surveillance
Information technology enhances surveillance capabilities by improving
traditional systems like CCTV with
features such as facial recognition and integrating
data from Internet-of-Things devices.
This technology also powers "surveillance capitalism," where social
media and online platforms collect
extensive personal data, sometimes without clear consent, for purposes ranging from targeted advertising to potentially malicious activities like election interference.
In early April 2021, during the Kumbh Mela festival in Haridwar, India,
AI-enabled cameras and drones
monitored pilgrims for mask-wearing and physical distancing as COVID-19 cases
surged. While these technologies
aimed to enhance safety, they also raised concerns about privacy and individual freedoms. In recent years,
Indian police have increasingly used fingerprint and facial recognition technology (FRT) for
surveillance in various public spaces, including during protests against
controversial laws. These technologies, often prone to high error rates and biases, have led to privacy violations and wrongful arrests.
Digital surveillance in India extends beyond
policing to broader
datafication, where personal
data is extensively collected
and analysed by both the state and private entities. The proposed Social Registry Information System, intended to
integrate with India’s Aadhaar biometric system, aims to track individuals' lives comprehensively, raising significant privacy
concerns. This shift
towards pervasive surveillance compromises privacy,
a fundamental right linked to freedom of expression and protection against
discrimination.
In the context of India's expanding digital surveillance without a
comprehensive data-protection law,
the Supreme Court has recognized privacy as a fundamental right. However, the
current surveillance regime reflects
an emerging challenge. As the European Union considers regulations on surveillance technologies and data privacy, the need for robust protections in a rapidly
evolving digital landscape
becomes increasingly critical.
Legal Framework and Responses in India
Constitutional Framework
The Right to Privacy was not directly envisaged by the Constitution
makers and as such does not find a mention in Part III of the Constitution relating
to Fundamental Rights. In the MP Sharma
vs Satish Chandra case[9],
the Supreme Court decided in favour of the practice of search and seizure when contrasted with privacy.
In 1975, the Indian Supreme Court's decision in Gobind vs State of MP[10] marked a significant moment for privacy rights, introducing the compelling state interest test from American
law. This test requires that an individual's right to privacy
may be overridden by a compelling state
interest, which must be
convincingly justified. Over time, the scope of privacy in India has broadened
to include sensitive personal data, such as medical records and biometric information.
In 1997 in the matter of PUCL
vs Union of India[11], commonly
known as telephone
tapping cases, the Supreme
Court unequivocally held that individuals had a privacy interest
in the content of their
telephone communications.
The Indian Constitution does not explicitly guarantee the right to privacy.
However, Indian courts
have interpreted Article
21—the right to life and liberty—to encompass
a limited right to privacy.
This interpretation was challenged in the 2015 case Justice K.S. Puttaswamy vs. Union of India[12]. On August 24, 2017, the Supreme Court
ruled that privacy is a fundamental right, integral to the right to life and personal liberty under
the Constitution. The Court clarified that this right is not absolute
and is subject to reasonable restrictions, similar to other fundamental rights.
Existing Laws on Privacy
Presently, there is no specific legislation dealing with privacy and data
protection. The protection of
privacy and data can be derived from various laws pertaining to information
technology, intellectual property,
crimes and contractual relations.
(i)
Information Technology Act, 2000
In the absence of a specific law on privacy, this right is legally viewed
under the Information Technology Act,
2000. The Act has some express provision guarding individuals against breach of privacy by corporate entities. The Act was amended in 2008 to insert Section 43 A which made the Companies compromising sensitive
personal data liable to pay compensation.
Exercising its powers under Section 43A of the IT Act, 2000, the
Government framed eight rules to
protect privacy of an individual. These all relate to seeking permission by a
company before accessing privacy
data of individuals and fixing liabilities for violation of the
same[13].
(ii)
Credit Information Companies Regulation Act,2005(“CICRA”)
As per the CICRA, the credit information pertaining to individuals in India have to be collected as per privacy
norms enunciated in the CICRA regulation. Entities
collecting the data and maintaining the same have been made liable
for any possible leak or alteration of this data. Based on Fair Credit Reporting Act and Graham Leach Bliley Act, the
CICRA has created a strict framework
for information pertaining to credit and finances of the individuals and
companies in India. The Regulations under CICRA which provide for strict data privacy principles have recently been notified by the Reserve Bank of India.
(iii)
Intellectual Property
Laws:
The Indian Copyright Act prescribes mandatory punishment for piracy of
copyrighted matter commensurate with
the gravity of the offence. Section 63B of the Indian Copyright Act provides that any person who knowingly makes use on
a computer of an infringing copy of computer
program shall be punishable.
It is pertinent to mention here that the Indian courts recognise
copyright in databases. It has been held that compilation of list of clients/customers developed
by a person by devoting
time, money, labour and skill amounts
to “literary work” wherein the author has a copyright under the Copyright Act. As such if any infringement occurs with respect to data
bases, the outsourcing parent entity may have recourse under the
Copyright Act also.
(iv)
Digital Personal Data Protection Act (DPDP Act), 2023
The law came into effect August 11, 2023 and covers personal data
collected in digital format, or collected
by other means and later digitized. The law is intended to protect personal
information for citizens in the
world’s most populous country, and increase accountability for organizations that handle a lot of such data, including
those with online operations and that run mobile apps.
Supreme Court Key conclusions from the judgment
in *Justice K.S.
Puttaswamy (Retd) vs Union of India*:
1. Life and personal liberty
are inalienable rights
central to human dignity and the Indian
Constitution.
2. The recognition of the right
to privacy is not a constitutional amendment but a judicial
interpretation.
3. Privacy includes
personal intimacies, family
life, marriage, procreation, sexual orientation, and the right to be left alone.
4. Personal lifestyle choices are integral to privacy.
5. Privacy is inherent to individuals, even in public spaces.
6. Constitutional interpretation must adapt to technological advancements and societal changes.
7. Privacy is not absolute
and must be balanced
against permissible legal restrictions.
8. Privacy has both negative
(protection from state intrusion)
and positive (state protection of privacy) aspects.
9. Privacy is
a fundamental right protecting individual autonomy from state and non-state interference.
10. The home environment must safeguard family,
marriage, procreation, and sexual orientation as key elements of dignity.
11. Privacy is crucial in a diverse
nation and must be upheld
as a fundamental right.
12. Privacy rights
are fundamental and not subject
to majority opinion.
13. Privacy is an inherent
fundamental right under Part
III of the Constitution, subject
to reasonable restrictions.
Judicial Pronouncements by Supreme Court on Privacy[14]
In the following seven
cases, the Supreme Court had upheld
the Right to Privacy:
|
1964
1997
1998
2008
|
KHARAK SINGH VS STATE OF UP & OTHERS (1963 AIR SC 1295)
PUCL VS UNION OF INDIA (AIR
1997 SC 568)
MR X VS HOSPITAL Z
(1998 (8) SCC 296)
HINSA VIRODHAK SANGH VS MIRZAPUR MOTI KURESH JAMAT
(AIR 2008 SC 1892)
|
SURVEILLANCE INTRUDES INTO
PRIVACY: This
case is among the most cited cases
in India when it comes to privacy. Here, a
majority of a six-judge bench held that unlawful intrusion into the home violates personal liberty.
TELEPHONE TAPPING INVADES
PRIVACY: A
division bench held that a telephone conversation is an exercise in freedom of expression, and that telephone tapping is an invasion of privacy.
PRIVACY ISN’T ABSOLUTE: The case
concerned revealing the HIV status
of a patient by a doctor. A division bench
held the right
to privacy isn’t absolute. A doctor may disclose
a patient’s HIV status to the partner.
CHOICE OF FOOD
PERSONAL: A
division
bench upheld the closure of
slaughterhouses in Ahmedabad during
the Jain Paryushan festival. It also observed that what one eats
is part of one?s right to privacy.
|
|
2009
2011
2012
|
JAMIRUDDIN AHMED VS STATE OF
WEST BENGAL(CRIMINAL APPEAL NO. 1535 OF 2008)
RAM JETHMALANI & OTHERS VS UNION OF INDIA (2011) 8
SCC 1
SUPREME COURT TAKES
SUO MOTU NOTICE OF THE RAMLILA
MAIDAN INCIDENT
|
RAID WITHOUT REASON
NOT OKAY: A
division bench ruled that search/seizure without
recording valid reasons violates the right to privacy
CAN’T REVEAL BANK
DETAILS WITHOUT
VALID GROUNDS: Popularly known as the
“Black Money Case”, here the
Supreme Court held that revealing
an individual?s bank account details
without establishing grounds to accuse them of
wrongdoing violates their right to
privacy
RIGHT TO SLEEP
IS PART OF RIGHT
TO
PRIVACY: The
Supreme Court took suo motu cognizance of the crackdown on
sleeping anti- corruption
protesters camping at Ramlila Maidan led by Baba
Ramdev. Identifying Right to Sleep as an aspect of the Right to
Dignity and Privacy, the court refused to permit
“illegitimate intrusion into a
person?s privacy as right
to privacy is implicit in the right
to life and liberty”
|
Role of Ministry of Electronics and Information Technology[15]
“The Cyber Law & Data Governance Division, operating under the
Ministry of Electronics and Information Technology (MeitY), assumes a pivotal role in shaping
India's digital landscape. Since the inception
of the Information Technology Act in 2000, this division has been at the
forefront, fostering electronic transactions, providing legal validation for e-commerce, facilitating e- governance,
preventing computer-based crimes, and implementing robust security
measures.
A notable recent addition to the division’s initiatives is the Digital
Personal Data Protection Act of 2023, a landmark
legislation that adeptly
balances individual privacy
rights with the imperative to process digital personal data for
lawful purposes. The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules of 2021 further showcase the division's commitment to regulating social
media intermediaries, online
gaming, and safeguarding digital citizens. The establishment of a
Grievance Appellate Committee
reflects the division's dedication to resolving social media grievances where grievance officers
couldn't provide relief
to the social media users in India.
Moreover, the division actively pioneers frameworks for data governance
and protection, crucial for
establishing an open, safe, trusted, accountable, and adaptable cyberspace.
Acknowledging data protection as a
fundamental right for Indian citizens, the division formulates policies to safeguard
these rights. Furthermore, the division delves into the legal implications of cutting-edge technologies such as IoT, Blockchain, and Artificial Intelligence, while also addressing aspects of Competition Law, Company Law, Copyright Act, and Intellectual Property Rights (IPR) protection
within the domain of information technology. In essence, the division operates
as a guardian of digital
rights, ensuring a secure cyberspace that is indispensable for the nation's
digital economy growth.”
Role of Justice Sri Krishna committee in Data Protection Laws[16]
In the year 2017, the government of India, through its Ministry of
Electronics and Information Technology,
appointed a committee of ten members under the chairmanship of Justice B.R. Krishna
(a retired Supreme
Court judge). This committee was supposed to submit a detailed report
on the introduction of the data privacy law in India. The committee
finally submitted its report on the
data protection framework
on July 27, 2018.
·
The committee recommended a clear distinction between
sensitive personal data and critical personal
data and separate
provisions for the collection and processing of different kinds
of data. It was suggested
that the term ‘personal data’ is any kind of data that allows identification of an individual, whether
directly or indirectly. However, sensitive personal data is in relation to more
intimate matters such as caste, religion and sexual orientation of a person. It was
also made clear that the critical personal data should be processed in the centres
that are located
within the country
only.
·
The reports suggested that there is a fiduciary
relationship between the service provider and
individuals whose data is collected. So, the service provider is always under
an obligation to deal with the personal
data of the individuals in a fair and transparent manner and also to give the individual notice of data collection at various points. Also, the service provider would be bound by the ‘purpose
limitation principle’, which states that personal data should be collected only for limited, explicit and
specified purposes.
·
The law was suggested not to have any retrospective effect and would be enforced
for the future, but only in a structured manner.
·
The committee strongly suggested that the processing
of personal data should have clear,
specific and lawful purposes alone. The data should be processed only when it’s consented to by the individual. This
consent may, at any time, be withdrawn by the
individual.
·
A special mention
was made in regard to the data on children. It said there needed to be stricter
provisions for protection
of their data.
·
It was also pointed out that there may be four
situations in which non-consensual processing of data
may be allowed. These are:
1.
When the processing is relevant for the state in order to do its welfare
functions.
2.
When it’s required
to comply with the law or
legal orders within India.
3.
When the processing is necessitated by the need to act upon it promptly.
4.
in the scenario
of employment contracts
as well.
·
The committee also put forth the idea that all
organisations and firms that collect personal
data should mandatorily appoint data protection officers.
These officers would
go on to become the main point of
contact for the users who face any grievance in their data collection by the concerned company.
·
The committee also made a key recommendation of
imposing higher penalties ranging from
2-4% of the company’s worldwide turnover or fines between Rs. 5 crore and Rs. 15 crore, whichever is higher.
·
Another highlight of the committee’s report was that
the data protection law enacted would
have jurisdiction over the processing of personal data when that data has been used, stored, disclosed, or collected anywhere
in India; it doesn’t matter
where the data is actually
processed.
·
The report also suggested the setting up of a data
protection authority that would be an independent regulatory body responsible for the enforcement and implementation of the data privacy law. This body would be responsible for conducting research and spreading
awareness on the issues as well. Any decision rendered by this authority
could be appealed against
and heard by an appellate
body.
·
It was also stated by the committee
that there are certain rights of an individual, such as the right to access their data, to
correct it, withdraw their consent, right to object to the data processing, right to be forgotten, etc.
·
As per the report of the committee, there would be amendments needed in laws such as the Information Technology Act, 2000; the Census Act, 1948; the Aadhar Act, 2016, Right to Information Act, 2005.
After receiving the recommendations of the committee and a draft privacy law bill, the bill remained in limbo. Its first draft was made public in July 2018 and then revised again
in December 2019. The Bill was then referred to a joint parliamentary committee for its report,
which submitted its report two years later, that is, in
December 2021. Later, the government decided to withdraw the bill as there were too many proposed changes
to be incorporated. Later in November 2022,
the Ministry of Electronics
and Information Technology released a draft bill for public consultations. Finally, in August 2023, the government
introduced the Digital Personal Data Protection Bill, 2022. After much consultation and amendment,
the Digital Personal Data Protection Bill of 2023 was finally passed
and it received the
President’s assent after six years.
Digital Personal
Data Protection Act, 2023
An Act provides for the processing of digital personal data in a manner
that recognizes both the rights of
the individuals to protect their personal data and the need to process such
personal data for lawful
purposes and for matters connected therewith or incidental thereto.
1. The Act
protects digital personal data (that is, the data by which a person may be identified)
by providing for the following:
a. The
obligations of Data Fiduciaries (that is, persons, companies and government entities who process data) for data
processing (that is, collection, storage or any other operation on personal data);
b. The rights
and duties of Data Principals (that is, the person to whom the data relates);and
c. Financial penalties
for breach of rights, duties
and obligations.
The Act also seeks to achieve
the following:
a.
Introduce data protection law with minimum disruption while ensuring necessary change in the way Data Fiduciaries process data;
b.
Enhance the Ease of Living
and the Ease of Doing Business;
and
c.
Enable India’s digital
economy and its innovation ecosystem. 2.The Act is based on the following seven principles:
a.
The principle of consented, lawful and
transparent use of personal
data;
b.
The principle of purpose limitation (use of personal data only for the purpose specified at the time of obtaining
consent of the Data
Principal);
c.
The principle of data minimisation (collection of only as much personal
data as is necessary to serve the specified purpose);
d.
The principle
of data accuracy (ensuring data is correct and updated);
e.
The principle of storage limitation (storing data only till it is needed
for the specified purpose);
f.
The principle
of reasonable security safeguards; and
g.
The principle of accountability (through adjudication of data
breaches and breaches of the provisions of the
Bill and imposition of penalties
for the breaches).
2.
The Act has few other innovative
features:
The Bill is concise
and SARAL, that is, Simple,
Accessible, Rational &Actionable Law as it—
a.
Uses plain language;
b.
Contains illustrations that make the meaning clear;
c.
contains no provisos
(“Provided that…”); and
d.
Has minimal cross-referencing.
4.
By using the word “she” instead of “he”, for the first time it acknowledges women in Parliamentary law-making.
5.
The Bill provides for following rights to the individuals:
a.
The right to access
information about personal
data processed;
b.
The right to correction
and erasure of data;
c.
The right to grievance redressal; and
d.
The right to nominate a person to exercise rights
in case of death or incapacity.
For enforcing his/her rights, an affected Data Principal may approach the
Data Fiduciary in the first instance.
In case he/she
is not satisfied, he/she can complain against
the Data Fiduciary to the Data Protection Board in a hassle-free manner.
6.
The Act provides
for following obligations on the data fiduciary:
a.
To have security safeguards to prevent personal data breach;
b.
To intimate personal
data breaches to the affected
Data Principal and the Data Protection Board;
c.
To erase personal
data when it is
no longer needed for the specified purpose;
d.
To erase personal
data upon withdrawal of consent;
e.
To have in place grievance redressal system and an
officer to respond to queries from Data Principals; and
f.
To fulfill certain additional obligations in respect
of Data Fiduciaries notified as Significant
Data Fiduciaries, such as appointing a data auditor and conducting periodic
Data Protection Impact Assessment to ensure higher degree of data
protection.
7.
The Act safeguards the personal data of children
also.
a.
The Bill allows a Data
Fiduciary to process
the personal data of children only with parental consent.
b.
The Bill does not permit processing
which is detrimental to well-being of children or involves their tracking, behavioural monitoring or targeted
advertising.
8.
The exemptions provided
in the Bill are as follows:
a.
For notified agencies,
in the interest of security,
sovereignty, public order,
etc.;
b.
For research,
archiving or statistical purposes;
c.
For startups or other notified categories of Data Fiduciaries;
d.
To enforce legal rights and claims;
e.
To perform judicial
or regulatory functions;
f.
To prevent, detect, investigate or prosecute offences;
g.
To process in India personal data of non-residents under foreign contract;
h.
For approved merger, demerger etc.; and
i.
To locate defaulters and their financial assets
etc.
Conclusion
The DPDP Act, the result
of over five years of debate and negotiation, represents the beginning of formal
personal data protection regulation. How effectively personal data privacy is
safeguarded will depend on the
regulatory developments and institutional
frameworks established in the coming years. While the new law lays the
essential groundwork, it alone is insufficient to ensure real data privacy.
It is uncertain whether earlier drafts of the bill would have provided
significantly better privacy protection.
However, the evolution of the law’s content reflects a shift in the government's approach to privacy. The current version of the law, by imposing lower compliance costs on Indian
businesses compared to earlier drafts,
is a positive development.
In general, the law is both modest and practical, which is a good thing. Nevertheless, its practicality sometimes comes at the expense of
privacy interests. The significant discretionary authority granted to the central government means
that the effectiveness of privacy protection will largely depend on the government's dedication to upholding it.
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