THE DIGITAL PERSONAL DATA PROTECTION ACT, 2023 - an overview

Today most of us are seeing and experiencing that, we have to deal with many, many platforms, companies that we refer to in technical terms as data producers, as companies who deliver to us products and services online. To deliver those products and services, seek personal data and use the data to deliver the product or service. Now for many, many years it has been known and its not any secret that many platforms and many companies have been collecting personal data of individual citizens not just in India but all around the world and have been exploiting that personal data for their own business models, algorithms and many other ways and frankly this has been done without the awareness or agreement of the person whose personal data it was. This act intends to address all such misuses and protection of individuals personal data.

This act is to create an environment where the innovation ecosystem and startups can continue to operate with guard rails than move on in that type of framework. Between 2019 and 2021, there was an attempt to create a legislative framework on the Digital Personal Data Protection. However, unfortunately, the formulation and the deliberations of that Select Committee created an extremely complex legislative framework that would have caused tremendous amount of compliance burden for a young startups and young entrepreneurs, startups and ventures in the digital economy. Hence, the Government is again re-initiated the process of re-creating the act with new framework of digital data protection, personal data protection legislation which is globally comparative, very contemporary, very simple. Very easy to understand and most importantly addresses the seemingly contradictory objectives that any world class legislation should achieve, which is protecting the citizens’ rights,  compliance friendly regime for Startups and the Digital Economy momentum.

Here are some main points covered in the act.

The act is already notified. However, the rules are yet to be released. We shall through light on the practical actions necessary for the companies in our next article.



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Satish Kumar Nagarju