Importance of Data Privacy – GDPR and DPDP Act

Data privacy is a discipline intended to keep data safe against improper access, theft or loss. I is vital to ensure that data is kept confidential and secure, and this is achieved through exercising sound data management and preventing unauthorized access that might result in data loss, alteration or theft.

This can be achieved through implementing effective cybersecurity measures within the organisation such through access control measures, such as usernames and passwords, or some form of biometric authentication. Robust legislation regulates the collection, storage and processing of personal data both internationally and domestically in the form of the General Data Protection Regulation (GDPR) and the Digital Personal Data Protection (DPDP) Act.

The GDPR is a legal framework that sets guidelines for the collection and processing of personal information from individuals who live in and outside of the European Union (EU).

The regulation, which was approved in 2016 and put into effect in 2018, is the strictest data security and privacy law in the world. It aims to give users control over their own personal data by holding companies responsible for the manner in which they collect, store and process such information.

The Digital Personal Data Protection (DPDP) Act, 2023 is India’s first legislation on data privacy and protection. It applies to the processing of digital personal data within the territory of India collected online or collected offline and later digitized. It is also applicable to processing digital personal data outside the territory of India, if it involves providing goods or services to the data principals within the territory of India.

General Data Protection Regulation (GDPR)

The GDPR sets forth 3 key principles for with regards to Data Privacy: Lawfulness, Fairness and Transparency.

“Lawful” means that the collection and processing of data is done on a legally valid basis. This can mean enforcing consent mechanisms for ensuring that the user is informed and willing to provide their data.

“Fair” means that the processing of personal data is in the best interest of the user who has provided the data and any processing done on such data is within the scope of what the user can reasonably expect when such data is provided.

“Transparency” is the clear communication of the details of the processing of personal data to the user from whom such data is collected.

With respect to the rights of the users, the GDPR guarantees the following rights:

• The right to be informed
• The right of access
• The right of rectification
• The right to erasure
• The right to restrict processing
• The right to data portability
• The right to object
• The right to not be subject to automated decision-making

The GDPR recognizes that not all organizations involved in the processing of personal data have an equal level of responsibility, and classifies two entities under the purview of the regulation: a Data Controller is an entity which determines the purposes of any personal data and the means of processing it, while a Data Processor is an entity which processes personal data on behalf of a data controller. An entity classified as a data controller or a data processor, is responsible for ensuring compliance with the GDPR and demonstrate compliance with the regulation’s data protection principles. While Date Processors do not have the same level of GDPR compliance responsibilities as Data Controllers, they must still take appropriate organizational and technical measures to ensure that any processed data is done so in line with the GDPR.

Digital Personal Data Protection (DPDP) Act, 2023

This Act establishes guidelines for handling digital personal data, balancing individuals’ rights to protect their information with the necessity of processing data for legal purposes and related matters. The act applies to personal data which is processed within India, and personal data that is processed outside India if it pertains to business activity related to individuals within India.

The Act is based on the following seven principles:

• The principle of consented, lawful and transparent use of personal data;
• The principle of purpose limitation (use of personal data only for the purpose specified at the time of obtaining consent of the Data Principal);
• The principle of data minimisation (collection of only as much personal data as is necessary to serve the specified purpose);
• The principle of data accuracy (ensuring data is correct and updated);
• The principle of storage limitation (storing data only till it is needed for the specified purpose);
• The principle of reasonable security safeguards; and
• The principle of accountability (through adjudication of data breaches and breaches of the provisions of the Bill and imposition of penalties for the breaches).

The Act provides for following rights to the individuals:

• The right to access information about personal data processed;
• The right to correction and erasure of data;
• The right to grievance redressal; and
• The right to nominate a person to exercise rights in case of death or incapacity.

Data privacy is crucial in a society that is becoming more and more digital. Both India’s Digital Personal Data Protection (DPDP) Act and the General Data Protection Regulation (GDPR) are essential frameworks intended to safeguard people’s personal information while making sure businesses manage it appropriately. These rules provide users more control over their information and strengthen their rights by emphasising the values of lawfulness, fairness, and openness.

Following these regulations is not only required by law but also advantageous for businesses, particularly start-ups with significant intellectual property. Stronger customer connections result from the implementation of solid data protection procedures, which also build trust and improve brand reputation. Businesses must be proactive as the regulatory environment evolves, constantly modifying their procedures to satisfy compliance standards and protect the data they handle.

Organisations must effectively address the intricacies of data privacy by comprehending and adhering to the principles set out in the GDPR and DPDP. This effort not only safeguards people’s rights but also helps create a more secure and reliable online environment, opening doors for innovation and expansion in the information economy.