#dpdp act

[dpdp-consultants]

DPDPA Audit & Significant Data Fiduciaries

Imagine that a company in India, handling digital personal data, fails to comply with DPDPA rules due to its lack of transparent consent processes. So, unfortunately, they become exposed to legal consequences due to non-compliance and may even have to bear hefty fines of up to 250 Cr. 

As an organisation, you want to steer clear of any non-compliance issue and an audit can be a lifesaver. It identifies and rectifies such vulnerabilities and protects the company's reputation and builds customer trust. 

To put it simply, an audit is a proactive step to maintain data privacy, identify gaps, mitigate legal risks, and enhance your overall business integrity. 

In this blog, we bring you everything you must know about DPDPA audits and significant data fiduciaries so you are on the safe side.

What Is The DPDPA Framework?

The DPDP Act 2023 brings us a comprehensive data protection law that's set to protect and safeguard personal data. It has far-reaching implications for businesses operating in the country.

DPDPA places various responsibilities on organisations that handle personal data to protect individuals' privacy and ensure responsible data management practices. This includes: 

Getting free, specific, informed, unconditional, and unambiguous consent from individuals before collecting their personal data

Executing robust security safeguards to protect personal data from unauthorized access, accidental disclosure, acquisition, etc.

Granting individuals access to their data, as well as the right to correct, erase, or restrict its processing

In the unfortunate event of a data breach, organisations are obligated to notify the relevant authorities

It's also important to note that non-compliance with the DPDPA can result in penalties up to 250 cr.

Who Are Significant Data Fiduciaries?

In simple terms, a 'data fiduciary' under the DPDP is someone who, either alone or with others, decides why and how personal data is processed. This can include individuals, companies, associations, the government, or any other entity that controls personal data.

If the Central government identifies a data fiduciary or a group of them, they are called a Significant Data Fiduciary.

Source: Meity 

This decision is based on several factors, including: 

The volume and sensitivity of personal data processed

Risk to the rights of the Data Principal

Potential impact on the sovereignty and integrity of India

Risk to electoral democracy

Security of the State

Public order.

Additional Duties of Significant Data Fiduciaries 

A Significant Data Fiduciary has additional responsibilities on top of Data Fiduciary duties. This includes: 

Appointing a Data Protection Officer (DPO) - The DPO will represent the Significant Data Fiduciary under the provisions of the DPDP Act. However, they must be based in India. The DPO must also report to the Board of Directors or a similar governing body and be the point of contact for grievance redressal

Appointing an independent data auditor - The auditor evaluates the entity's compliance with the law

Conducting periodic Data Protection Impact Assessment (DPIA), which evaluates how personal data is processed, risks to individuals' rights, and other relevant details

Undertaking periodic audits to ensure ongoing compliance

Adopting additional measures as prescribed by law

Why Periodic DPDPA Audits Are Necessary?

A DPDPA audit falls under the additional responsibilities of a Significant Data Fiduciary.

It is mandatory for businesses in India to do a thorough DPDPA compliance audit. This audit can find any gaps in compliance and help take corrective measures to make sure they're following the law.

These audits can be incredibly beneficial, and here’s why you need them. 

Regular DPDPA audits help you protect individuals' privacy in compliance with the law

It helps identify potential risks and vulnerabilities in data-handling processes 

It lets you take proactive measures to mitigate risks before they become serious issues, such as hefty fines of up to 250 Cr

It helps you assess the effectiveness of existing security measures and identify areas for improvement to enhance overall data security. This, in turn, improves customer trust and brand image

It highlights any gaps or deficiencies in the organisation's data protection practices and offers insights into areas that may require additional attention or resources to prevent data breaches

DPDPA audits allow you to adapt to evolving threats and regulatory changes

Who Needs Regular DPDPA Audits? 

It's quite simple. Audits are essential for all types of organisations and industries that handle personal data or have regulatory compliance requirements. However, as per the Digital Personal Data Protection Act, it's a mandate for Significant Data Fiduciaries, as discussed above.

This can include schools, colleges, and universities that handle student and staff information or healthcare providers who handle patients' medical records and sensitive health information. Regular audits ensure compliance, identify and address vulnerabilities, and maintain the security and integrity of the data they handle.

DPIAs and Audits: The Right Tool 

Source: DPDP Consultants 

Significant Data Fiduciaries are required to conduct DPIAs and regular audits. But this has to be done diligently. So, there is a need to automate the process to ensure all bases are covered while maximizing time and efficiency. These tools minimize human bias and produce a standardized report that streamlines the process. 

That said, when it comes to DPIAs, you can switch to a Data Protection Impact Assessment Tool. It automates the entire DPIA process and lets you conduct the assessment almost effortlessly through a user-friendly platform.

With this tool, you can track risks that were identified during the assessment and make sure all concerned individuals are kept in the loop regarding the actions taken to mitigate these risks. 

Let's make Compliance Easy

As per the DPDP Act, there are certain obligations you must adhere to when it comes to personal data. And, regular DPDPA audits and DPIAs are one of the duties of a Significant Data Fiduciary. DPIAs and audits help identify and rectify any potential breaches and ensure the lawful and secure processing of personal data.

They are almost indispensable for maintaining trust, avoiding penalties, and upholding a commitment to responsible data handling.

DPDP Consultants brings you a set of tools and services that makes compliance with the DPDP Act easy and streamlined:

Our Data Protection Consent Management tool streamlines the acquisition of valid consent and automates the entire process of managing, tracking, and handling consent requests

The Data Principal Grievance Redressal platform streamlines the process of exercising data rights through a user-friendly interface and improves response efficiency in accordance with the DPDP Act

Our Data Protection Impact Assessment  tool aids in the easy assessment and tracking of risks and ensures transparent communication about risk mitigation efforts

Our Data Protection Awareness program allows management to oversee the ongoing and efficient execution of their personal data privacy initiatives

Our Contract Reviews and redrafting services ensure that your business's outsourcing agreements align with DPDPA compliance standards

Through our DPDP Data Protection Officer services, organisations can appoint a third party for process audits so it aligns seamlessly with DPDPA requirements

Our training program for employees caters to organisation-specific needs emphasizes the practical aspects of DPDPA compliance and covers personal data policies, processing activities, and more.

Compliance isn't just about following the law; it's also about building trust and keeping your brand's reputation strong. Treating personal data with care isn't just a legal requirement—it's key to making a digital society that's fair for everyone.

Simplify DPDPA Compliance And Optimise Your Operations!

DPDP Consultants offers comprehensive solutions for personal data privacy and privacy law guidance to ensure compliance.

[ernstandyoung]

In the era of digital data explosion, the newly enacted DPDP Act endeavours to uphold individuals' authority over personal information.

[trendingkhabar]

Social media, telcos, lobby for 18-24 months to comply with DPDP Act

Social media companies, telecom operators, and Indian startups are set to lobby for a transition period of 18-24 months to fully comply with the Digital Personal Data Protection (DPDP) Act, 2023, citing technological complexities in two clauses, Business Standard has learnt. Major industry bodies representing local and global companies such as social media companies, big tech platforms, and…

[thinkinglegal]

Understanding the Territorial Scope of India's DPDP Act and the EU's GDPR

Data protection laws have been evolving quickly, especially with India's recent Digital Personal Data Protection (DPDP) Act, passed in 2023. Many are comparing it to the European Union's General Data Protection Regulation (GDPR), particularly in terms of how far these laws reach. Vaneesa Agrawal, a prominent business lawyer specializing in data protection, notes that the territorial scope of these laws is a crucial aspect that organizations need to understand.

Both the DPDP Act and GDPR have quite broad territorial scopes. The GDPR, for instance, applies to any organization that handles the personal data of people living in the EU, even if that organization is based elsewhere. Similarly, the DPDP Act extends its reach beyond India's borders, applying to digital personal data processed outside India if it relates to offering goods or services to people in India. This wide application reflects the increasingly global nature of data flows, which is becoming harder to ignore, as pointed out by business lawyers familiar with international data regulations.

As we transition into a year after the enactment of the DPDP Act, it is essential to examine its implications and the current discourse surrounding it. Vaneesa Agrawal highlights that the DPDP Act not only aims to protect individual privacy but also seeks to position India as a leader in global data governance, aligning with Prime Minister Modi's vision of a $1 trillion digital economy.

One Year Later: A Look at the DPDP Act

As we move into the first year since the DPDP Act came into force, there's growing interest in its impact and the discussions it has sparked. Business lawyers specializing in data protection are closely monitoring these developments. Vaneesa Agrawal observes that the Act is not just about safeguarding individual privacy; it's part of India's larger goal to become a leader in global data governance.

Many business lawyers view the DPDP Act as a groundbreaking move in establishing a solid data protection framework for India. An article from Storyboard18 even suggests that it could serve as a model for global data protection standards. The Act focuses on key principles like individual consent, data minimization, and purpose limitation—ideas that resonate with the GDPR. But it also takes into account India's specific socio-economic landscape, allowing for more flexibility with cross-border data transfers, especially compared to the stricter GDPR.

Key Features of the DPDP Act

Let's break down some of the DPDP Act's most important features, as analyzed by business lawyers:

Cross-Border Data Transfers: Unlike the GDPR, which uses a whitelisting approach (allowing data transfers only to approved countries), the DPDP Act opts for a blacklisting model. This means that data can generally be transferred to most places unless the Indian government specifically restricts it. Vaneesa Agrawal points out that this method reflects the geopolitical realities of managing data while still protecting national interests.

Regulatory Framework: The DPDP Act has established the Data Protection Board of India (DPBI), an independent body responsible for enforcing the law and resolving disputes. Business lawyers recognize that this follows international best practices in data governance.

Consent Management: The Act requires explicit, informed, and revocable consent from individuals before their data can be processed. This is especially relevant given the rise of AI and the complex ways data is used in today's digital economy, as noted by business lawyers specializing in technology law.

While the DPDP Act shares some common ground with the GDPR, it diverges in key ways. For instance, the GDPR puts responsibilities on both data controllers and processors, while the DPDP Act focuses primarily on data fiduciaries (those responsible for determining how data is processed). Another difference, as pointed out by Vaneesa Agrawal, is that under the DPDP Act, all data breaches must be reported to both the data protection board and affected individuals. In contrast, the GDPR only mandates reporting for breaches that pose a high risk to individuals.

Bridging the Gap Between DPDP and GDPR

As India moves further into its digital transformation, there's a growing call to harmonize its data protection laws with the GDPR. An article from The Print argues that aligning the DPDP Act with the GDPR would reduce the compliance burden for companies operating in both regions. Business lawyers are closely following these discussions, recognizing the potential impact on their clients' operations.

Here are a few areas where the two laws differ, as analyzed by business lawyers:

Data Retention: The DPDP Act takes a more prescriptive stance on data retention, requiring that data be deleted as soon as it's no longer needed. The GDPR, on the other hand, doesn't specify a retention period beyond the time necessary for the intended purpose.

User Rights: Under the DPDP Act, users can seek redress directly from service providers, while the GDPR allows users to approach supervisory authorities without first going to the service provider. Vaneesa Agrawal emphasizes the importance of understanding these differences for businesses operating in both jurisdictions.

Exemptions: Business lawyers explain that the DPDP Act allows exceptions for data processing related to law enforcement, which may not align fully with the GDPR's broader approach to protecting personal data, even in such cases.

These differences underscore the complexity of global data governance. However, India has a significant opportunity to learn from the EU's experience with the GDPR, especially regarding breach reporting and safeguarding user rights. Vaneesa Agrawal suggests that this learning process could lead to more refined data protection practices in India.

Conclusion: The Future of Global Data Protection

With the DPDP Act now in effect alongside the GDPR, we're seeing the beginning of a new chapter in global data protection. The world is watching how India will handle enforcement, compliance, and the protection of individual rights. If successful, the DPDP Act could become a model not just for India, but for other countries aiming to establish robust data protection frameworks.

Business lawyers are playing a crucial role in helping organizations navigate this evolving landscape. The expertise of business lawyers will be invaluable in ensuring compliance with both the DPDP Act and the GDPR, especially for companies operating across multiple jurisdictions.

In short, Vaneesa Agrawal highlights, “While the DPDP Act represents a major step forward for data protection in India, ongoing collaboration with the EU will be essential in creating a unified global approach to data governance.” Aligning India's regulations with international standards won't just ease compliance—it will be crucial for building trust in the digital world, ensuring that individual rights are protected while also encouraging innovation and economic growth. Business lawyers will continue to be at the forefront of these developments, guiding organizations through the complexities of global data protection laws.

[kajol1991]

Is India’s DPDP Act the Next Global Standard for Data Protection?

Discover how India’s Digital Personal Data Protection (DPDP) Act could be the blueprint for the future of global data protection. Drawing parallels with GDPR, Piyush Mehta, Founder and CEO of Data Dynamics, explores how this groundbreaking legislation might influence data protection standards worldwide. With a focus on flexibility, cross-border data flows, and a robust consent management framework, the DPDP Act is positioned as a pioneering model that could shape the global discourse on data sovereignty and privacy.

Read the full article on Storyboard18 and see why the world is watching India's next move.

[hamzaaslam]

Data Erasure Software Earns Government STQC Certification, Enabling DPDP Act Compliance

PUNE, INDIA – Media OutReach Newswire – 16 July 2024 – Thanks to a recently awarded government certification, businesses facing new data deletion mandates under India’s Digital Personal Data Protection (DPDP) Act, as well as Indian government agencies with stringent procurement requirements, can confidently use software from Blancco to destroy data on data storage drives, laptops, desktops, and…

[unstructured-data-management]

India's Digital Personal Data Protection Act (DPDP) is revolutionizing the digital landscape by empowering individuals with data control and enforcing strict compliance from businesses. Discover how this landmark legislation fosters accountability, data localization, and growth opportunities.

[webgeekzone]

DPDP’s New Data Breach Reporting Rules: A Comprehensive Guide for Businesses

The specter of data breaches looms large in the digital age, casting a shadow over user trust and platform accountability. In India, the impending Digital Personal Data Protection (DPDP) Act promises a paradigm shift in data governance, with stringent regulations designed to safeguard user privacy and empower individuals. Among its most crucial provisions lies the mandate for immediate data breach disclosure to the Data Protection Board (DPB). This article delves deep into the intricacies of this requirement, dissecting its implications for platforms, users, and the broader data ecosystem.

[imnitishverma]

India's Digital Personal Data Protection Act 2023

The Digital Personal Data Protection Act 2023 (DPDP Act) is a landmark piece of legislation in India, aiming to regulate the collection, processing, and storage of digital personal data. Enacted on August 11th, 2023, it marks a significant step towards protecting the privacy of Indian citizens in the digital age. Key Features: Scope: Applies to all entities processing digital personal data in…

[dpdp-consultants]

How To Build Privacy Compliance For India's New DPDP Act?

As soon as the Digital Personal Data Protection Act 2023 was enacted, many companies started efforts to get compliant - from updating privacy policies to tweaking contracts.

But is this enough? 

While that's a good start, true compliance involves a deeper commitment. What's needed here is a comprehensive understanding of the law's nuances and implications, along with proactive measures to ensure ongoing adherence. Ahead, we tell you how to build privacy compliance for India's new DPDP Act. Let's dive in!

What Is The Privacy Compliance?

Privacy compliance makes sure that businesses handle an individual's personal data according to the legal regulations of the DPDP Act. This protects the data from any breaches and unauthorized access. 

Now, adhering to the regulations is mandatory. It not only protects individuals' privacy but helps businesses avoid heavy legal penalties.

By implementing privacy measures, you build trust with customers, manage risks, and demonstrate commitment to ethical data handling practices.

What Is the Digital Personal Data Protection Act (DPDPA)?

Source: Meity

The Digital Personal Data Protection Act 2023 is India's first privacy law and is defined as an Act to provide for the processing of digital personal data in a manner that recognizes both the right of individuals to protect their personal data and the need to process such personal data for lawful purposes and for matters connected therewith or incidental thereto.

The Digital Personal Data Protection Act 2023 addresses privacy concerns by outlining rules for handling personal data. Similar to the EU's GDPR, it emphasizes consent and data subject rights. 

That said, it has distinct features, including specific language, and requirements. The DPDPA mandates that businesses inform users about data processing through a privacy policy. Consent must be informed, meaning users understand what they're agreeing to. Failure to provide proper notice invalidates consent and data processing. 

To put it simply, the Digital Personal Data Protection Act 2023 protects personal data by ensuring transparency and enforcing stringent consent standards. 

Challenges In Privacy Compliance 

Privacy compliance faces various challenges. They include:

Understanding and adhering to diverse regulations of the Digital Personal Data Protection Act(DPDPA) may need a nuanced outlook.

Businesses may struggle with data governance, determining who accesses data and how it's used, while ensuring compliance with laws. 

The lack of clear guidelines can make implementation feel complicated and lead to uncertainty and potential legal risks. 

Balancing security measures with user accessibility poses a challenge, as overly restrictive policies can hamper user experience. 

New technology introduces new privacy concerns, requiring constant adaptation to protect data effectively. 

Education and awareness gaps among employees and customers further compound these challenges, stressing the need for comprehensive privacy training programs.

What Must Companies Do To Build Privacy Compliance?

Here are a few things companies can do to build privacy compliance:

Create clear guidelines for all employees and update them regularly to adapt to changing circumstances.

Ensure adherence to policies from top management to down and integrate them into company culture through open communication.

Make policies easily understandable and encourage staff to follow them. Also, address any implementation challenges immediately.

Utilise checklists to help everyone follow procedural requirements and track progress efficiently.

Facilitate easy and clear methodology for responding to Data principal rights and grievance redressal.

Conduct regular training sessions for all staff levels to reinforce understanding of policies and maintain compliance.

Stay up-to-date on evolving laws and regulations and ensure policies remain relevant and compliant with current standards.

Enforce policies consistently across all team members and departments and showcase the importance of compliance in daily operations.

Perform audits periodically to evaluate policy effectiveness, identify areas for improvement, and manage any security gaps.

Use automation tools to streamline compliance processes and maintain consistency.

Privacy Compliance Solutions & Automated Tools

As you can see, building privacy compliance for India's new DPDP Act requires a comprehensive approach. You must understand the law’s intricacies and develop a robust action plan. From conducting Data Protection impact assessments to clear data handling policies, it needs continuous efforts.

DPDPA Consultants bring you all the necessary tools and solutions, which makes privacy compliance with the Digital Personal Data Protection Act 2023 easier. Here's how: 

Our Data Protection Consent Management tool enables obtaining valid consent easily and automates consent request handling, ensuring compliance throughout the process.

With Data Principal Grievance Redressal, individuals can effortlessly exercise their data rights through a user-friendly platform, enhancing response efficiency in line with the Digital Personal Data Protection Act 2023.

Simplify the Data Protection Impact Assessments (DPIAs) process with our tool and allow easy risk assessment and tracking, ensuring everyone stays informed about the efforts.

Our Data Protection Awareness program enables management to oversee the continuous execution of their personal data privacy initiatives efficiently.

Ensure outsourcing agreements comply with the DPDP Act through our Contract Reviews and redrafting services.

Our custom training programs address organization-specific needs, emphasising practical aspects of DPDP compliance such as personal data policies and processing activities.

Build Privacy Compliance For DPDPA Today!

Boost your compliance journey with DPDP Consultants. Our comprehensive suite of automation tools and expert services simplifies DPDPA adherence every step of the way.

Contact Us For DPDP Compliance Tools

FAQ 

How do you ensure data privacy compliance?

Ensuring data privacy compliance involves several steps such as implementing robust security measures, conducting regular audits, staff training, etc. The right set of strategies is imperative to uphold regulatory standards.

Why is data privacy and compliance important?

Data privacy and protection are important to protect individuals' sensitive information, maintain trust with customers, and avoid legal penalties associated with data breaches or mishandling.

What are the 5 pillars of compliance with the Data Privacy Act?

The five pillars of compliance with the Data Privacy Act include appointing a consent manager, data protection officer, conducting risk assessments, implementing data protection measures, creating a privacy management program, and reporting breaches immediately.

[snrlawassociation]

DPDP Act Best Practices For Consent Management

The Data Protection Bill (DP Bill), 2019, is a comprehensive legislation that seeks to govern the collection, use, storage, and transfer of personal data in India. The Bill is expected to be passed by the Parliament soon, and it is important for businesses to start preparing for its implementation.

One of the key aspects of the DP Bill is consent. Under the Bill, businesses must obtain consent from individuals before collecting, using, or storing their personal data. Consent must be freely given, specific, informed, and unambiguous. Businesses must also provide individuals with the option to withdraw their consent at any time.

Managing consent under the DP Bill can be challenging, but it is essential to ensure compliance with the law. Here are some best practices for managing consent:

1. Obtain consent before collecting, using, or storing personal data

Businesses must obtain consent from individuals before collecting, using, or storing their personal data. Consent must be freely given, specific, informed, and unambiguous.

To obtain consent, businesses should provide individuals with a clear and concise privacy notice that explains how their personal data will be used. The privacy notice should also inform individuals of their right to withdraw their consent at any time.

Businesses should also provide individuals with the option to give or withdraw their consent in a clear and easy way. This can be done through a variety of methods, such as checkboxes, opt-in/opt-out forms, or preference centers.

2. Make it easy for individuals to withdraw their consent

Individuals must have the right to withdraw their consent at any time. Businesses should make it easy for individuals to withdraw their consent by providing them with a clear and simple process to do so.

For example, businesses can provide individuals with the option to withdraw their consent through a link in the privacy notice, through their account settings, or by contacting customer support.

3. Keep a record of consent

Businesses must keep a record of consent for each individual whose personal data they collect, use, or store. This record should include the date and time that consent was given, the specific purpose for which consent was given, and the method by which consent was given.

Keeping a record of consent is important for demonstrating compliance with the DP Bill. It can also be helpful in resolving disputes with individuals about whether they gave consent and for what purpose.

4. Provide individuals with access to their personal data

Individuals have the right to access their personal data that is collected, used, or stored by businesses. Businesses must provide individuals with a clear and easy way to access their personal data.

For example, businesses can provide individuals with a link in the privacy notice to their account portal, where they can view and manage their personal data.

5. Protect personal data from unauthorized access, use, or disclosure

Businesses must take appropriate measures to protect personal data from unauthorized access, use, or disclosure. This includes implementing technical and organizational security measures.

Businesses should also have a process in place for responding to data breaches and other security incidents.

Conclusion

Managing consent under the DP Bill is essential to ensure compliance with the law. By following the best practices outlined above, businesses can minimize the risk of violating the law and protect the privacy of their customers.

[harishjain]

Data Protection Law in India: Analysis of DPDP Act, 2023 for Businesses – Part I

On August 11, 2023, India notified the Digital Personal Data Protection Act, 2023 (DPDP Act), paving the way for new digital personal data processing norms. DPDP Act primarily aims to provide statutory recognition to some aspects of informational privacy, while balancing the need to process personal data on lawful grounds.

With 44 provisions and a Schedule on penalties, DPDP Act does not have a sunrise provision and is likely to be implemented in a phased manner, through separate notifications in the Official Gazette. Upon implementation, Section 43A of the Information Technology Act[1] and its corresponding rules, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Information) Rules, 2011 (SPDI Rules) will be omitted.[2] Other applicable data processing regulations including sectoral ones will continue to apply, provided they do not conflict with DPDP Act. It also provides for the creation of an independent regulator – the Data Protection Board of India (DPBI), which shall be responsible for implementation, inquiry, and adjudication under DPDP Act. Different provisions of DPDP Act are focused on time-tested fundamental principles of data processing, and detailing has been left to rule-making.

Read More: Data Protection Law in India: Analysis of DPDP Act, 2023 for Businesses – Part I