The Data Protection and Digital Privacy Act of 2023 is landmark legislation for
the protection of personal data and digital privacy because, as technological
change rapidly advanced, increasing human reliance on digital platforms for
commerce, socializing, and communication meant there was an urgent need for
strong protection. The DPDPA 2023 fills this gap by detailing a set of
broad-ranging principles and requirements for the collection, processing,
storage, and sharing of personal data.
About DPDPA 2023
DPDPA 2023 aims at providing a legal framework for protection of personal data
of individuals through digital privacy. The Act enshrines the rights of data
subjects, responsibilities of data controllers and processors, as well as the
penalty for non-compliance.
The key highlights of the DPDPA 2023 are such that they provide:
- Definitions and Scope: Clear definitions on key terms like personal data, data subject, data controller, and processor are well articulated under the Act. It broadly applies across the board to all institutions processing personal data, be it in-country or abroad.
- Principles regarding data processing: Under the DPDPA 2023, several fundamental principles regarding data processing have been provided for, such as lawfulness, fairness, transparency, purpose limitation, data minimization, accuracy, storage limitation, integrity, confidentiality, and accountability.
- Data Subject Rights: This shall grant individuals several rights regarding their personal information, such as the rights to access, rectify, erase, restrict processing, data portability, and the right to object to processing. It also discusses provisions regarding automated processing and profiling.
- Duties of Controllers and Processors: Controllers and processors have the responsibility to implement appropriate technical and organizational measures to ensure the security of data and to provide proof of compliance with that enactment. They shall also conduct a data protection impact assessment, keep processing records, and take all necessary steps to appoint data protection officers where appropriate.
- Notification of Breach: In case of a data breach, the DPDPA 2023 provides that notification be made by data controllers to the relevant supervisory authority and the affected persons without undue delay, stating details of the breach, the likely consequences of the breach, and the measures taken to address it.
- International Data Transfers: Conditions for the transfer of personal data to third countries or international organizations shall be organized in such a way that the transfers concerned offer an adequate level of data protection.
- Enforcement and Penalties: The DPDPA 2023 empowers supervisory authorities to oversee and implement the application of the Act. It provides a framework for penalties and sanctions, among them administrative fines for incompliance.
Key Provisions of DPDPA 2023
Data Processing Principles
DPDPA 2023 gives a high emphasis on various principles which an organization
needs to comply with while processing personal data:
- Lawfulness, Fairness, and Transparency: Personal data shall be processed lawfully, fairly and in a transparent manner. Adequate and clear information about the exercise of the process of data processing must be brought forth to the notice of data subjects.
- Purpose limitation: Data must be collected for determined, explicit, and legitimate purposes and not further processed in a manner incompatible with those purposes.
- Data minimization: The data collected shall be limited to the one that is necessary for the intended purpose of processing.
- Accuracy: The data controller has the responsibility to ensure the accuracy and update of personal information.
- Storage Limitation: Personal data shall be preserved for no longer time than is necessary for the purpose of the data collection.
- Integrity and confidentiality: Appropriate security measures must be undertaken to protect personal data against unauthorized, illegal data processing.
- Accountability: The data controller shall be responsible for his adherence to the principles and also be accountable for the same, showing proof that the principles are being followed.
Data Subjects' Right The DPDPA 2023 gives a data subject various rights
associated with their personal data, which include:
- Right to Access: A data subject has the right to confirmation as to whether or not their data is being processed and, in case of such processing, access to the data and information regarding its processing.
- Right to Rectify: An individual may request a correction of their personal inaccurate data, as well as the completion of the incomplete data.
- Right to Restrict Processing: Subjects have the right to obtain a restriction in processing under specific circumstances.
- Right to Object: In some contexts, the data subject shall have the right to object to processing of personal data concerning himself or herself.
- Rights Related to Automated Individual Decision-Making and Profiling: The data subject has the right not to be subjected to a decision which is based exclusively on automated processing and which produces legal effects concerning him or her or similarly significantly affects them.
Data Controller and Processor Responsibilities
The DPDPA 2023 imposes several obligations on the bodies processing data on an
individual.
- DPIAs (Data Protection Impact Assessments): Controllers must conduct DPIAs for operations involving data that are likely to cause high risks toward the freedoms and rights of individuals.
- DPOs: Organizations are supposed to appoint DPOs unless their core activities include regularly and systematically monitoring data subjects on a large scale.
- Records of Processing Activity: Controllers and processors need to keep records of processing activity and make them available to supervisory authorities upon request.
- Measures for Data Security: Organizations must also enforce the appropriate technical and organizational measures to ensure an appropriate level of data security concerning the perceived threats and guarantee sufficient protection against unauthorized access, disclosure, or destruction of personal data.
Data Breach Notification
The DPDPA 2023 requires a data controller to notify the relevant supervisory
authority without undue delay, but, where feasible, not later than 72 hours
after having become aware of a personal data breach. Where the breach is likely
to result in a high risk to rights and freedoms of individuals, the data
controller shall also communicate the information to the data subject without
undue delay.
The communication shall contain:
- Description of the nature of the breach: including the categories, and number,
of the individuals concerned, and of the data records in question;
- Name and contact details of the data protection officer or other contact point;
- The foreseeable consequences of the breach;
The measures taken or proposed to be taken to address the breach, including,
where appropriate, the measures to mitigate its possible adverse effects.
International Data Transfers
The DPDPA 2023 imposes conditions and guarantees while transferring personal
data to third countries or international organizations. Such transfers may take
place only if the receiving country or organization provides a level of
protection of personal data that can be identified and affirmed by the
supervisory authority. In the absence of an adequacy decision, personal data may
be transferred only if:
- The explicit consent of the data subject has been obtained for the intended transfer.
- The transfer is necessary for the performance of a contract between the data subject and the controller.
- The transfer is for the purpose of important reasons of public interest.
- The transfer is necessary for the establishment, exercise, or defense of legal claims.
Implementation and Penalties
The DPDPA 2023 provides for provisions for the supervisory authorities to
enforce implementation, as well as penalizing acts of non-compliance. The act
supports appropriate, proportional, and dissuasive administrative fines.
Depending on the nature, gravity, and duration of violation the penalties may be
graded, and thus more severe violations will attract higher penalties.
Conclusion
The Data Protection and Digital Privacy Act of 2023 is an important measure as
it deals with protecting personal information of individuals, ensuring their
digital privacy. By setting clear principles, rights, and obligations, the DPDPA
2023 furnishes a strong legal framework for data protection in the digital age.
Organizations will have to be proactive and ensure compliance with the
requirements of the Act to handle personal data responsibly and transparently.
As digital technologies continue to be developed, the DPDPA 2023 will ensure
protection of privacy and build confidence in the digital economy.
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