Global data privacy models are all about lawful processing of personal data. Along similar lines stand the data processing principals of DPDPA. It explicitly states that the processing of a data principal’s personal data must be done for a lawful purpose. Apart from that, it is explicitly mentioned that it is of prime importance for a data fiduciary to obtain consent of an individual before processing their personal data. Here are some of the key grounds for lawful processing of personal data.
Key Grounds for Lawful Processing
Under the DPDPA, personal data can only be processed lawfully on two primary grounds: consent and legitimate use.
- Consent-Based Processing: Similar to the GDPR, the DPDPA requires consent to be “free, specific, informed, unambiguous, and affirmative.” However, while GDPR is stringent about granular consent—where users must explicitly opt-in to each type of data processing—the DPDPA is less strict on granularity, allowing some flexibility in how consent is sought. Nonetheless, organizations need to ensure that consent is clearly tied to a specific purpose. For instance, if a user provides their personal data for a particular service, that data cannot be used for unrelated purposes without additional consent.
- Legitimate Use: The DPDPA outlines several predefined legitimate uses where personal data can be processed without explicit consent. These include processing for purposes such as emergency care, employment-related data, legal obligations, and compliance with laws. For instance, employers can process personal data related to employees (such as biometrics for attendance) without obtaining their express consent. However, these legitimate uses are narrowly defined, meaning that most private entities will still need to rely heavily on purpose-based, revocable consent for lawful processing.
Purpose Limitation and Data Minimization
The DPDPA mandates that personal data should only be processed for a specific purpose, and this purpose must be clearly communicated to the data principal (the individual). Once the purpose is fulfilled or the data principal withdraws consent, the processing of the personal data must stop. Furthermore, data fiduciaries (entities processing personal data) are obligated to minimize the data collected and retain it only as long as necessary.
In practice, this means that organizations must review their data collection processes and ensure that they are collecting only the data necessary for the specified purpose. For example, if a user provides data to receive a product or service, the organization cannot retain or process this data indefinitely unless it continues to serve the original purpose.
Cross-Border Data Transfers
The DPDPA adopts a “blacklist” approach to cross-border data transfers, which contrasts with the GDPR’s “whitelist” approach. In India, data transfers are generally permissible unless the destination country is explicitly prohibited by the Indian government. This flexibility allows for freer movement of data across borders, but organizations must remain vigilant about potential restrictions as the government may introduce future regulations specifying countries where transfers are restricted.
Data Retention and Security Obligations
Another significant aspect of lawful processing under the DPDPA is the requirement to ensure data accuracy, maintain its completeness, and notify authorities and users in case of a breach. Organizations must implement appropriate technical and organizational measures, such as encryption, to prevent unauthorized access or data breaches. Failure to comply with these obligations can lead to penalties of up to INR 250 crore (approximately USD 30 million).
Regarding retention, the DPDPA takes a more prescriptive approach than the GDPR. While the GDPR allows data controllers flexibility in deciding when the purpose of data collection has been served, the DPDPA specifies that once a service is no longer accessed or a user doesn’t exercise their rights for a specified period, the data must be deleted. This stipulation adds an extra layer of compliance complexity, as companies will need to closely monitor user engagement and adjust retention policies accordingly.
Conclusion
The DPDPA represents a pivotal shift in India’s data protection landscape, emphasizing lawful processing, purpose limitation, and stringent data security requirements. Businesses that adapt to these principles not only ensure compliance but also enhance their reputation by fostering trust and accountability.
Navigating this complex regulatory environment requires more than just understanding the rules—it demands actionable insights and robust security measures. At Securitybulls, we believe that aligning with data protection standards goes beyond compliance; it’s about building a secure, resilient foundation for sustainable growth. By adopting a proactive approach to data security and privacy, organizations can transform regulatory challenges into opportunities to showcase leadership and trust in the digital space.
As businesses continue to embrace the DPDPA, the ability to secure and manage data responsibly will set them apart. Securitybulls is committed to helping organizations achieve that balance with tailored solutions that address the intersection of security, compliance, and trust.
