We are all shedding data like skin cells. Almost everything we do with, or simply in proximity to, a connected device generates some small bit of information—about who we are, about the device we’re using, about what we did and when and how and for how long. Sometimes doing nothing at all—merely lingering on a webpage—is recorded as a relevant piece of information. People can’t learn enough about privacy risks to make informed decisions.

Recognizing the need for a legal framework to regulate digital transactions, Indian govt. enacted the IT Act 2000 for regulating ecommerce and e-governance. In 2008 amendments expanded the scope of IT act by criminalizing identity theft, phishing, hacking, etc. Data protection concept was introduced but it focussed only on sensitive personal data rather than general personal data.  A comprehensive and unified data protection law was long overdue leaving various sectors to adopt their own guidelines and inconsistencies across various sectors which is exactly the reason why the Digital Personal Data Protection Act 2023 was issued by the Ministry of Electronics & Information Technology (MeiTy).

How does DPDP bring in good news for individuals?

• With the DPDP coming into picture, individuals finally have a right to ask where, when and how is their personal data getting used. Individuals can no longer be fooled with the long paras of terms and conditions wherein consent is bundled and placed just for the sake of it.
• We always wonder how a simple search on a product can trigger the algorithms on Instagram, LinkedIn and other such platforms to exhibit a plethora of choices eventually ending up buying the product.  This is nothing but an “illusion of choices” created by the algorithms deployed in these platforms manipulating our purchase behaviour. Most of the times, ‘consent’ and ‘choice’ are clubbed together however DPDP brings clear rules on obtention of consent before processing any personal data of individuals.
• At present, Indian companies aren’t required to notify consumers of personal data breaches which leaves consumers in the dark about potential threats to their personal information, however DPDP requires the affected individual to be notified immediately of a personal data breach

What is the impact on organizations handling personal data?

When an organization offers different products and services to end consumers and other businesses, it gets exposed to their personal information through different means. It needs to ensure that personal information of their customers is used only for the intended purpose and in case of any compromise, organizations should be able to detect it. This requires a mechanism that monitors the privacy of the personal data and systemizes incident management. Organizations now actually have to go to their customer and clearly ask: “Can I process your personal information and can I process it for these purposes?”. Handling large no of data and sensitive data including profiling would now bring the organizations under stricter purview of the Data Protection Board demanding additional compliances and stern security controls.

Data privacy has finally earned its importance and organizations in non-compliance can face penalty upto Rs 250 crores!!

How can organizations consider data protection as an opportunity for their businesses?

• In the digital economy, data is more than just information—it’s the fuel that powers innovation, growth, and competitive advantage. Businesses collect, process, and analyse unprecedented volumes of personal data for processing, analysing and marketing. For Indian businesses, this isn’t just about avoiding penalties but seizing an opportunity to lead with integrity in a data driven world
• Aligning data practices with the Act’s requirements will be crucial for leveraging the AI technologies for developing products prioritizing privacy. This enables maintaining compliance with evolving regulatory standards and shift from reactive to proactive data governance.
• A comprehensive privacy program that integrates governance, risk management and compliance across all processing activities positions organizations as leaders in data protection and privacy and builds customers’ trust giving as assurance that their personal data is safe.
• Every day, for a multitude of reasons, people share their personal information online on a variety of platforms. For this reason, they want to be sure organizations collecting their data will keep it secure. A data breach occurs every 39 seconds. Giving the customers a platform for accessing the rights to their personal data will give them a sense of empowerment and display accountability
• Enterprises of all sizes have experienced endless digital assault and a general lack of knowledge on maintaining appropriate security and mitigation measures, now that the Act has been passed, it would bring responsible data processing conduct on the businesses.
• Effective data mapping and management provides better control to organizations helping business boost sales, provide more relevant marketing content, enhance and improve customer experience. The crossover between marketing and privacy is easy to overlook but can remarkably improve business’ ability to organize its campaigns.

Conclusion: Data privacy is a Profit Centre not Cost Centre

Following data privacy laws will not only save the organizations from the enormous financial loss due to penalties but it gives a standardisation given the nature of large personal data handled. By conducting a risk impact assessment, organizations get a thorough overview of the risk involved and to work hard on the compliance part which will eventually help in enhancing controls and gaining people trust. If organizations don’t know where their data is, who has access to it and whether it meets regulatory standards, they are already at risk. Businesses that fail to adopt data governance are likely to find themselves locked out of key markets later