Opinion: Decoding the Digital Personal Data Protection Bill, 2023

As we’ve grown to embrace technology in many facets of our lives, we’ve also inadvertently opened the doors to an infringement of our data, details, and documentation associated with our habits as consumers. Today, how often do we find ourselves being suggested an advertisement for something that we briefly browsed for on an entirely different social media platform? It’s almost as if something, or someone, is constantly watching our every move and generating algorithms to give us what we want, even before knowing that we want it.

The increasing demand for greater control over personal information 

Privacy matters. And there’s no two ways about it. The right to our personal information is a fundamental right. It empowers us as individuals to have full control over our information, what parts of our information we wish to share, and who we decide to share it with. Protecting our privacy mitigates us from unforeseen risks in the form of data theft, hacking, and cyber harassment, to name but a few. The digital age has made it easier for people and organizations to collect and store personal information for the benefit of both parties. However, it has also raised several questions about how much control individuals have over their own data anymore. For the longest time, India did not have a standalone law with respect to data privacy/ protection. Anything related to privacy was kept under the Information Technology Act. Over the years, as Indians sought greater autonomy over their personal data, government authorities planned for an act that would solve their grievances. Finally, in August 2023, the Digital Personal Data Protection Bill was introduced.

A welcome step in data protection 

The Bill brings balance to both parties, individuals and companies, in interactions that use individuals’ personal data. It achieves this via several principles that are based on user consent, data transparency, accountability, and data minimization, among others.
The legislative framework is such that collection of personal data, both online & offline, requires the information to be processed upon how much the individual consents to, and to only take, store, and use the data that is truly necessary. The much-anticipated bill will also make it compulsory for companies outside of India to adhere to the data privacy policies that protect Indians under this bill.

Deemed consent: How organizations will have to adapt to the changes in the data acquisition landscape 

Organizations, both small and large, will be encouraged to digitize personal data. Companies would also look to comply with the new bill’s regulations in order to prevent data breaches, thereby completely safeguarding their consumers. Businesses that are data-driven will have to rework their policies in accordance with their audience groups. Clearly defined ownership of data by individuals will have a significant impact on the way businesses can recommend their products and services to them. User data will no longer be harvested by companies without the knowledge of the consumer, and as such, recommendations cannot be made to consumers in a way that is almost eerie.

With consumers now in the driver’s seat, they will have more power to dictate the various products and services they want to see and purchase. The Digital Personal Data Protection Bill will act as a mediator between businesses and their audiences. This will also help foster relationships between brands and audiences that are strongly rooted in the foundations of mutual trust and transparency. Consumer groups will now always be aware when their information is being used, and more importantly - how much of it is being used. This is set to change the way brands can strategize their efforts to capture the attention of newer target groups.

Delivering more personalized experiences to audiences will also require a complete overhaul, given the limited scope of data they can base their newer products and services on for consumers.

All in all, the Digital Personal Data Protection Bill is a huge win for individuals who have been vociferously campaigning for improved data privacy. While the Bill may fall short in certain aspects, such as the digital infrastructure to combat the mishaps of Artificial Intelligence, future improvements are set to account for these issues. For businesses, a new chapter awaits in their efforts to attract new customer groups while retaining existing ones.

This article is penned by Swati Nathani, Co-founder and CBO, Team Pumpkin.

Disclaimer: The article features the opinion of the author and does not necessarily reflect the stance of the publication.