Mumbai: The government on 3 August introduced the Digital Personal Data Protection Bill 2023, in the LokSabha, outlining the lawful collection, processing and protection of private data. An independent body, the Data Protection Board, will be established to examine personal data breaches and impose penalties. It also prescribed penalties up to Rs 250 crore for data breaches.
As per the proposed legislation, digital platforms will be obligated to acquire explicit and well-informed consent from users prior to processing their data. Users will possess the right to retract this consent at any point, prompting platforms to halt data processing and eliminate the pertinent information. Additionally, the Bill allows for the international transfer of personal data to any country except those that might be designated as restricted by the government in the future.
The culmination of over four years of effort, extensive deliberations, and multiple revisions, the Bill presents a distinctive framework in comparison to prior draft laws concerning this subject matter. Offering solace to the industry, the Bill permits cross-border data transfers, introduces the voluntary management of data breaches, and eliminates the penal consequences outlined in the 2019 draft.
The Bill excludes anonymised, non-personal, and offline personal data from its scope and refrains from classifying data as sensitive or critical. To minimize legal conflicts, the Bill includes provisions for alternative dispute resolution (ADR). If passed into law, it will play a pivotal role in India's rapidly expanding digital economy. Any disputes arising from the board's decisions can be brought before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). The Bill outlines the overarching principles of data protection, leaving the precise legal obligations to be defined later by the government when establishing rules subsequent to the Bill's enactment.
Nevertheless, the intricate stipulations of the legislation might bring about favourable changes in how marketers conduct their activities within the nation. A key focal point of the bill pertains to its intended beneficiaries - whether it leans towards safeguarding the data principal (DP) or the consumer. Notably, a significant alteration is brought forth in Chapter III, Clause 11. This alteration grants DPs the privilege to solicit summaries of their personal data under processing, coupled with comprehensive information about the data fiduciaries (DFs) that partake in sharing this data.
Indiantelevison.com spoke to different brands and digital players for their opinion on this bill…..
Chimp&zInc CEO & founder Angad Singh Manchanda opines that, “The recent passage of the new data protection bill in the LokSabha is a significant milestone that reinforces India's digital landscape. The comprehensive legislation outlines the ethical guidelines for collecting, using, and sharing personal data, ushering in a new era of transparency and safeguarding individual rights. This achievement is cause for celebration, as it sets the stage for a more trustworthy and secure environment that is essential for businesses to thrive. By bestowing individuals with fundamental privacy rights, including the ability to access, correct, and erase their data, the bill underscores our nation's commitment to safeguarding its citizens. Moreover, it emphasizes the crucial importance of data security by imposing sensible measures to prevent unauthorized access, usage, or disclosure.”
He goes on to add, “However, it's worth noting that the bill currently lacks specific provisions addressing the emerging challenges posed by AI-generated content and deep fakes. As our digital landscape continues to evolve, it will be essential for future iterations of legislation to encompass these intricate issues to ensure comprehensive protection for all aspects of data usage and manipulation. Investing in data fortification is not only a matter of compliance but also a way to elevate India's digital landscape into a haven of integrity and innovation. Together, we can contribute to a thriving digital ecosystem that benefits everyone.”
Reputed brand Vinod Cookware Director Sunil Agarwal says, “The passage of the new digital data protection bill in the LokSabha is a landmark step towards protecting the privacy of Indian citizens and ensuring that their data is used responsibly. We believe that this bill will create a more level playing field for businesses and help to promote innovation in the digital economy.”
Skin and makeup online marketplace Cossouq director of marketing and branding Meet Jatakia points out, “The recent approval of the new data protection bill in the Lok Sabha brings a breath of fresh air for businesses navigating the digital realm. This bill's significance lies in its ability to provide the long-awaited clarity and safeguarding of individuals' data. Is it a ripple effect? A digital landscape that's not only more secure but also a fertile ground for businesses to flourish. As a marketplace for skin and makeup products, we collect a lot of personal data from our users, such as their names, addresses, and payment information. We are committed to protecting this data and using it responsibly.”
On the question of the bill's focus on obtaining consumer consent and authorization could potentially lead to challenges for brands in implementing personalized marketing tactics. In an environment where consumers are given the choice to decline participating in any promotional interactions with a brand, the effectiveness of intrusive advertisements and push notifications might be diminished.
Agarwal goes on to say, “As a responsible brand, Vinod Cookware takes every precaution to ensure that our customers' data is protected and used only for the purposes for which it was collected. We will continue to comply with all applicable data protection laws and regulations, including the new bill. In my opinion, the new bill will not only have a positive impact on advertising in India but will help to create a more transparent and accountable advertising ecosystem, benefiting both businesses and consumers. Firms will now be able to target their advertising more effectively, and consumers will have more control over their data. The inception of this novel bill heralds a new era where privacy is paramount, innovation thrives, and harmonious synergy between business and consumer interests becomes an undeniable reality.”
Jatakia adds on to say, “The new data protection bill will help us to do this by giving us clear guidelines on how we can collect, use, and share personal data. It will also help to mitigate these risks by giving individuals more control over their personal data and by making it more difficult for data to be used for malicious purposes. Furthermore, the new data protection bill's positive impact extends beyond individual privacy, fostering a more conducive environment for e-commerce brands to thrive while ensuring the welfare of both consumers and businesses alike. Here's the bottom line: The new data protection bill isn't just another bill. It's a game-changer, a protective shield for both businesses like Cossouq and individuals across India.”
Ed-tech platform Acadzo co-founder Vimesh Dedhia says, “The enactment of the Digital Data Protection Bill represents a substantial stride forward for India in its mission to preserve the privacy of its citizens. Particularly within the sphere of online education, this legislation bears the potential to cultivate an environment characterized by heightened security and dependability. By acting as a catalyst, the bill's provisions effectively bolster the dedication of platforms such as ours to safeguarding data and introduce a systematic framework for the augmentation of data protection protocols”.
Dedhia goes on to opine, “As we peer into the future, a promising vista emerges for online education in India. The bill's implementation is poised to accelerate industry expansion, thereby broadening its accessibility and inclusivity, especially for students hailing from diverse backgrounds. The convergence of this legislative push and the dynamic realm of online education sets the stage for a more fortified and equitable learning landscape, ensuring that the benefits of digital education are extended to all corners of the nation.”
A paradox arises as the bill simultaneously imposes responsibilities and penalties on data principals (DPs) themselves. Notably, Clause 15(d) raises apprehensions by stipulating that DPs should refrain from lodging baseless complaints, under the risk of facing penalties. This could potentially deter legitimate grievances from consumers.
Despite the increasing awareness among Indian consumers regarding marketing and data handling, a substantial portion of the population is still in the process of catching up. While the bill evidently aims to empower citizens against unethical data practices, a pertinent question remains: Do consumers possess the digital maturity required to fully utilize the provisions?
Pulp Strategy founder and MD Ambika Sharma believes, “The new data protection bill is comprehensive and designed to protect the privacy of Indian citizens. I expect it to have a major impact on businesses and government agencies that collect and use personal data. The bill covers the data lifecycle consistency, storage, access, complaints, and the penalty. The Bill takes some practical provisions like deemed consent. It allows for data to be obtained and processed under some circumstances, like if the data is available publicly, if it is legally necessary, etc. An immediate effect will be that businesses will need to redefine their processes to capture the data lifecycle records at the very least. The bill also seems to define the boundaries of sensitive and non-sensitive data. This is a practical approach. We will know more once the bill approval is complete”.
Luxury Ride co-founder & CEO Himanshu Arya says, “Insecurity definitely lingered amongst the consumers about how their data was so accessible within cyberspace. In a country where understanding of data ethics is still inconsistent, the government setting up norms seems a positive step towards individuals’ privacy rights. Now, private organizations can set-up standard practices and avenues to control the data flow.
The step will certainly affect the market considering how brands and marketers have leveraged individual data to provide them with personalized experiences and marketing strategies. Brands over the period have used consumer data to enhance their experience with the company and meet their demands. But, with new bill and developments, the third-party involvement would vanish away and first-party communications would be on the surface. This will give the audience and consumer a sense of security and marketers can trust the authenticity of the information.”
Social Panga co-founder Himanshu Arora is of the opinion, “We're still in the early adopter stage, but as more rules and restrictions are implemented, people will take notice. Finding the appropriate balance between knowing customers' requirements and preserving their privacy is critical in navigating this landscape.
We've seen individuals disclose their data for cashbacks of ten or twenty rupees, so it's not a top priority. People, on the other hand, seem to value the ability to limit the sharing of their data.
It is critical to strike a balance between innovation and the protection of consumer data. Our sector must evolve responsibly, ensuring that trust and privacy remain central to all strategic initiatives.”
