India's Digital Personal Data Protection (DPDP) Act is a ground-breaking legislation that balances the rights of individuals to protect their personal data with the necessity of processing such data for lawful purposes. The Act imposes obligations on Data Fiduciaries, those processing data, and outlines the rights and duties of Data Principals, individuals to whom the data pertains. It also introduces financial penalties for breaches.
The DPDP Act is guided by seven key principles, including consent, purpose limitation, data minimization, data accuracy, storage limitation, security safeguards, and accountability. The Act significantly impacts organizations, both domestic and international, that collect, process or store personal data of individuals in India. Here’s a summary of key impacts on organizations:
- Purpose Limitation: Organizations must collect and process personal data only for specified, explicit, and legitimate purposes and must not further process the data in a manner that is incompatible with those purposes.
- Data Minimization: Organizations must collect and process only the personal data that is necessary for the specified purpose and must not collect or process excessive amounts of data.
- Storage Limitation: Organizations must not store personal data for longer than necessary for the specified purpose or as required by law.
- Security Safeguards and Accountability: Organizations must be able to demonstrate compliance with the Act and must implement appropriate measures to protect personal data from unauthorized access, use, disclosure, alteration, or destruction.
- Consent: Organizations must obtain explicit consent from individuals before collecting, processing, or using their personal data, except in certain limited circumstances.
- Transparency: Organizations must provide individuals with clear and transparent information about how their personal data is being collected, processed, and used.
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