Digital Personal Data Protection (DPDP)

Introduction

In the present 21st century, personal data has become one of the most valuable commodities since every individual while using the social media and information technology services leaves behind a trail of information which may be potentially collected, analyzed and even misused. Therefore, protecting one’s digital identity in the form of digital personal data assumes paramount importance.

Since the recent past, the Indian information technology sector has made significant development and is in pace with the global markets. However, unlike its various other counterparts such as the USA, China, and many other nations which had enacted the personal data protection laws since nearly two decades, the laws pertaining to digital personal data protection in India were largely inconsistent.

Digital Personal Data Protection Act, 2023

The Digital Personal Data Protection Act (DPDP) is a legal framework which was introduced in India in order to safeguard the personal data of individuals along with ensuring that their personal data gets shared only with their own consent. The act regulates the processing of personal data in digital medium along with laying down various provisions for protecting individual’s privacy on digital and social media platforms.

The act applies to the processing of digital personal data within the territory of the country which is collected either online or offline and gets digitized later. However, the applicability of the act further extends to processing of digital personal data outside the territory of India in case such processing involves providing goods and services to data principles within the territory of India. There are also various key stakeholders in the Digital Data Protection Act which include a ‘Data Principle’ i.e., those individuals or entities whose data needs to be protected and has to give a written consent in clear and unambiguous terms to generate and process the data which shall also indicate the specific purpose of its usage. Such consent can also be withdrawn or restricted at any given point of time by the data principle.

The ‘Data Fiduciary’ is the entity which collects, stores and shares the data and acts as a consent manager that enables the data principle to give, manage or review the consent at any point of time. The Central Government is also vested with the power to notify any fiduciary or class of data fiduciaries as a significant data fiduciary. Additionally, there is also a Data Protection Officer or DPO who is appointed under the provisions of the act by Data Fiduciaries and is responsible for ensuring compliance of the data protection laws and advising employees on the nuances of data protection.

Understanding DPDP Regulatory Compliance

There are numerous compliances under the Digital Personal Data Protection Act which need to be mandatorily undertaken by the Data Fiduciaries which are as follows:

• Assessment of applicability and obligation – the first step that any data fiduciary needs to undertake is determining its applicability since the DPDP Act has far reaching applicability and jurisdiction. An accurate assessment of such obligations can be done by DPDP regulatory compliance lawyers.
• The second step involves identification of the entity’s role as a Data processor or data fiduciary under the act since both the roles have different obligations towards the data along with diverse compliance mechanisms. A clear understanding of the entity’s role as either a data fiduciary or a data processor would guide the entity towards creation of a compliance strategy including management of the consent and data processing strategies.

There are various other steps which need to be undertaken to ensure DPDP regulatory compliance which can be decoded by the DPDP Regulatory Compliance lawyers which are as follows:

• Auditing and Mapping of Strategies
• Defining Internal & External Policies
• Managing Consent
• Providing for User Rights
• Enhancing and Increasing Data Securities

Understanding DPDP Audit Legal Services

Since the recent past, DPDP Audit Legal Services have become increasingly important in India in order to comply with the Digital Personal Data Protection Act. Since various entities and organizations are responsible for handling and processing sensitive personal data, conducting such DPDP Audits enables oneself to identify various potential risks, vulnerabilities and issues on non – compliance provided that such audits are conducted by DPDP Compliance Law Firms or DPDP Regulatory Compliance Lawyers.

There are various key components of a DPDP Audit which include various components such as:

1. Assessment of data inventory which includes identification of all documents and personal data being processed by the organization.
2. Reviewing the data processing activities along with determining its legal basis and necessity of such data processing activities.
3. Evaluating the data security measures along with assessment of the adequacy and effectiveness of the security controls to protect the personal data.
4. Identification of the risks and vulnerabilities as well as pinpointing potential threats to data protection and privacy.

There are various benefits of DPDP Audits such as identifying and mitigating risks associated with the data pilferage and breaches, assuring compliance and thereby saving the organization from penal consequences and fines, enhanced data security and goodwill as well as market standing. There are several DPDP Compliance Law Firms and lawyers who advice and specialize in such areas of law and enable such entities and organizations to perform various services such as audit planning and scoping, execution of audits, preparation of reports and advising on compliances in such areas.

Conclusion

The Indian Digital Personal Data Protection Laws are an attempt to match India’s level of legal governance and personal data protection with the global standards as well as ensuring that the data privacy is upheld, and data breaches are minimized.

The law has also mandated various entities such as data fiduciaries and data processing organizations to carry out compliances and abide by the rules laid down under various statutes or notifications to ensure that data protection of individuals is kept at a sacrosanct level and penal actions against defaulters are promptly taken. Moreover, various DPDP Compliance Law Firms as well as DPDP Regulatory Compliance Lawyers also play a crucial role in managing and assisting organizations to ensure compliance with the statutory and mandatory requirements.

King Stubb & Kasiva,
Advocates & Attorneys

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