How does India’s Digital Personal Data Protection (DPDP) Act 2023 influence web security compliance?
Scope and Purpose of the DPDP Act
- The DPDP Act 2023 is India’s first comprehensive law focused specifically on personal data protection.
- It applies to digital personal data collected within India and also to data processed outside India if it relates to individuals in India.
- The Act emphasizes lawful processing, purpose limitation, and data minimization principles.
- It defines roles such as Data Fiduciaries and Data Principals, clarifying responsibilities.
- The law aims to build trust in the digital ecosystem and enhance India’s global compliance standing.
Mandated Security Obligations for Businesses
- Businesses must implement reasonable security safeguards to protect personal data from breaches.
- Regular security assessments, audits, and risk mitigation strategies are essential.
- Data encryption, secure storage, and controlled access are expected as standard practices.
- Organizations are required to report any data breach to the Data Protection Board and affected individuals.
- Failure to comply with these obligations can result in substantial financial penalties.
Impact on Website Design and Data Handling
- Websites must collect only necessary data and clearly disclose the purpose of collection.
- Consent mechanisms must be explicit, granular, and easily withdrawable.
- Web forms, cookies, and trackers must be re-evaluated for compliance with consent norms.
- Data retention policies must be updated to prevent indefinite storage of user information.
- Back-end systems must be built to ensure traceability and accountability for data handling.
Role of Consent and User Control
- Explicit user consent is mandatory before collecting or processing any personal data.
- Users (Data Principals) have the right to access, correct, delete, and port their data.
- Businesses must create clear, accessible mechanisms for users to exercise these rights.
- Consent logs must be securely stored as evidence of compliance.
- Websites targeting children or sensitive demographics require additional consent safeguards.
Legal and Reputational Implications of Non-Compliance
- Penalties for data breaches or non-compliance can go up to ₹250 crore, depending on severity.
- Legal liability extends to top management and key decision-makers.
- Negative publicity from violations can damage customer trust and brand value.
- Compliance can be a competitive advantage, especially in finance, healthcare, and e-commerce sectors.
- Proactive adherence shows readiness for international collaboration and data partnerships.
