India is one of the most diverse countries in the world. The country's
population is equivalent to 17.76% of the total world population, which makes it
number 1 on the list of country's populations. As of the 2020 survey, around
31.7% of the people in India use smartphones, which has grown further recently.
With the increasing population and their mounting desires, digital technology is
too budding and flaring its arms.
The digital world is equipped to immerse all varieties of new brainchildren and
innovations. Not only individuals but also big organizations heavily count on
the digital world for their working and easy administration. There are various
elements and benefits of the digital world, one very essential being the
"sharing of data".
The Digital World:
In the interconnected world, data sharing on the internet is a fundamental
aspect of digital communication, commerce, and modernization. But what exactly
is the sharing of data? It is the sharing and exchange of data between
individuals, organizations, and different entities and the Government over the
Internet. This exercise enables various activities stretching from social
interactions to public services.
Individuals, social media platforms, messaging apps, and email services allow
individuals to share their data which includes their messages, pictures, and
videos which fosters their social connectedness with the world. Whereas, the
business perspective is very different from that of the individuals. Business
organizations and professionals use the digital world mainly through
collaborative tools like cloud-based services, facilitating remote work, project
management, and professional networking. While digital data sharing offers
abundant advantages, it also comes with numerous significant disadvantages and
challenges, particularly in India.
Cookies:
While browsing any site, the first page always calls for permission for the
cookies. What are they? Do they have any significant importance related to us or
are they only for the site's benefit?
Cookies help websites remember user preferences, such as login credentials, and
language preferences. This enhances user convenience by eliminating the need to
repeatedly enter the credentials. They are tiny data files stored on our device
by websites one visits enabling them to remember their preferences. These small
pieces of data are integral to the functioning of modern websites.
Individuals benefit from cookies as they remember their preferences including
the language and login credentials which helps for better work for those who
visit the same site repeatedly. Cookies can also track the browsing history to
recommend previously viewed products, articles, and other content. This enhances
user experience by making it easier to find previously accessed information.
Based on the information gathered through cookies, sites may offer personalized
content based on the user's past behaviour on the site, such as recommending
similar articles or products.
Similarly, business organizations use cookies to collect data as to how a user
interacts with their website. It includes all the information ranging from pages
visited to the number of times they were visited.
Apart from these two kinds, there is also a role of a third party in the
management of cookies. They track users' behaviour across multiple websites
allowing businesses to deliver their ads which increases the relevance and
efficacy of the advertising drives. There are key differences concerning the
merits of cookies when looked at from an individual's perspective and when
looked at from a business perspective.
The following are the major differences:
- Individuals use cookies primarily for convenience and personalization on a per-site basis, whereas, a business organization uses them for broader purposes including overall user engagement across multiple touchpoints.
- Individuals get a more streamlined and personalized browsing experience. They do not leverage this data beyond their direct personal usage, whereas, business organizations collect and analyse cookie data to determine business decisions and improve customer services.
- Individuals manage their cookies through browser settings, and extensions, focusing on controlling their privacy and personal data. Whereas, business organizations comply with cookie management solutions and compliance frameworks to ensure legal obedience for business insights.
Like a coin, every aspect has the other side too. While cookies offer numerous
benefits in terms of user experience and website functionality, they also
introduce inherent risks and vulnerabilities that can be exploited by attackers.
Some of them are:
- They can store sensitive information, including user preferences, browsing history, and demographic data. This raises privacy concerns, particularly when cookies are used for tracking user behaviour across multiple websites without explicit consent.
Third-party cookies, often employed by advertisers and analytics providers, track user activity across different websites to create detailed profiles for targeted advertising. This extensive tracking infringes on user privacy and raises ethical concerns regarding data collection and surveillance.
- With the proliferation of cookies across the web, managing cookie settings and permissions becomes increasingly complex for users. Despite browser settings to control cookie behaviour, users often find it challenging to configure these settings effectively.
There are two types of cookies, one being temporary, while the other lasting for
long.
Session Cookies:
Session cookies are cookies that last for a session. A session starts when you
launch a website or web app and ends when you leave the website or close your
browser window. Session cookies contain information that is stored in a
temporary memory location which is deleted after the session ends. Unlike other
cookies, session cookies are never stored on your device. Therefore, they are
also known as transient cookies, non-persistent cookies, or temporary cookies.
The session cookie is a server-specific cookie that cannot be passed to any
machine other than the one that generated the cookie. This cookie stores
information such as the user's input and tracks the movements of the user within
the website. There is no other information stored in the session cookie.
A common example of a session cookie in action is in the shopping cart feature
found on most e-commerce websites. The session cookie stores the items that the
user has added to their cart so as they browse through the site, the items in
the cart will follow them. Without a session cookie, when a user went to the
checkout page, items would disappear from the shopping cart because the new page
would not recognize prior activities on the website.
Persistent Cookies:
Persistent cookies or permanent cookies are stored on users' hard drives until
they expire or until the user deletes the cookie. These cookies remain on a
user's device even after they close a web browser. Persistent cookies are used
to collect identifying information about the user, such as Web surfing behaviour
or user preferences for a specific Web site. Persistent cookies have an expiry
date and will be destroyed when the expiry date is reached. Persistent cookies
are also used to track user behaviour when they move around a site, and this
data is used for optimizing and improving the website experience.
An example of a persistent cookie is when a user checks the box, "Remember me" a
persistent cookie is created and stored on the user's device.
To overcome the risks and vulnerabilities of the cookies and other data
accessing weapons available digitally for individual and business organizations,
the "Digital Personal Data Act, 2023" was passed by the legislature in 2023. It
provides for the processing of digital personal data in a manner that recognizes
both the right of individuals to protect their data and the need to process such
personal data for lawful purposes and matters connected therewith or incidental
thereto.
The importance and need for this act were recognized by the Indian Supreme Court
in its latest judgment "Justice K.S. Puttaswamy & Anr. V. Union of India & Ors.,
also known as the privacy verdict". It is a landmark judgment by the Supreme
Court of India, which holds that the right to privacy is protected as a
fundamental right under Articles 14, 19, and 21 of the Constitution of India.
The Digital Personal Data Protection Act, 2023:
The Digital Personal Data Protection (DPDP) Act, 2023 of the Parliament received
the assent of the President on 11th August, 2023. The main aim of this act is to
protect the digital data of a person. The act is concluded with 44 Sections and
a schedule. This act not only deals with the data collected digitally but also
the data that is collected non-digitally and digitized subsequently. Another
very important element of this act is, unlike many legislations, here the term
"she" has been used for the very first time which includes all individuals
regardless of their gender. This has been used for acknowledging the women in
Parliament law-making.
According to Section 2(s), the term "person" covers – an individual, a Hindu
undivided family, a company, a firm, an association of persons or a body of
individuals, whether incorporated or not, the State; and an artificial juristic
person. (Justice, 2023)
According to this act, there are several grounds for processing the data by the
Data Fiduciary (the person who collects the data), which includes the consent of
the Data Principal (to whom the data belongs) and for the lawful purpose which
is expressly not forbidden in the eyes of law. This shifts the act of
responsibility on the Data Fiduciary's end to serve a notice to the Data
Principal for providing her consent to the usage of data for processing and its
purpose.
It also provides for the redressal of grievance and right to revoke her
free consent which she gave to process the data as and when felt. The Data
Principal is responsible for the consequences of withdrawing consent, and this
withdrawal does not affect the legality of processing done before the
withdrawal. Upon withdrawal of consent, the Data Fiduciary must stop processing
the Data Principal's data within a reasonable time unless continued processing
is legally required or authorized.
In terms where it is evident that the consent was the basis for the processing
of data, the Data Fiduciary is indebted to prove that the notice was served to
the Data Principal before such act.
Legitimate Use Of The Data/ Rights Of The Data Fiduciary:
The act specifies the legitimate use of the data by the Data Fiduciary in the
cases where the Data Principal herself has provided consent for such process.
- It includes the consent given previously by the Data Principal to the State and its instrumentalities who process the data given digitally or digitized subsequently for any subsidy, license or permit, benefits, etc.
- It also includes that any person in India who is legally required to disclose information to the government or its agencies must do so, as long as the process follows the existing laws regarding such disclosures.
- The State may access the personal data in the surge of sovereignty, integrity, or security of the country.
- It may also be used for employment purposes or to protect the employer from loss or liability, such as preventing corporate espionage, maintaining the confidentiality of trade secrets, intellectual property, classified information, or providing any service or benefit to an employee.
General Obligations Of The Data Fiduciary:
There are certain general obligations that a Data Fiduciary must comply with to
work effectively. This includes:
- Complying with the provisions of this Act and its rules for any data processing it undertakes or that is done on its behalf by a Data Processor, regardless of any agreement or the Data Principal's actions.
- Use a Data Processor to handle personal data for providing goods or services only under a valid contract with the Data Principal.
- If the data affects the Data Principal or is disclosed to another Data Fiduciary, the Data Fiduciary must ensure the data's completeness, accuracy, and consistency.
- The Data Fiduciary must implement appropriate technical and organizational measures to comply with the Act.
- The Data Fiduciary must protect personal data from breaches, including data processed by a Data Processor.
- In case of a personal data breach, the Data Fiduciary must notify the Board and affected Data Principals in the prescribed manner.
- The Data Fiduciary must erase personal data when the Data Principal withdraws consent or when the specified purpose is no longer being served unless retention is required by law. The specified purpose for data holding is deemed no longer obliged if the Data Principal does not approach the Data Fiduciary to perform the specified purpose or exercise any of her rights related to the data processing.
- The Data Fiduciary must also ensure that its Data Processor erases any personal data provided for processing.
- The Data Fiduciary must publish the business contact information of a Data Protection Officer or a designated person who can respond to queries about the processing of personal data.
- The Data Fiduciary must create an effective mechanism to address and resolve grievances raised by Data Principals.
- The Data Principal is considered not to have approached the Data Fiduciary for the specified purpose if she has not initiated contact for such performance over a period, whether through personal visits, electronic communication, or physical correspondence.
- Upon receiving a request from the Data Principal, the Data Fiduciary must correct inaccurate or misleading personal data, complete incomplete personal data, or update the personal data as necessary.
Apart from these primary obligations of the Data Fiduciary, there are additional
obligations of Significant Data Fiduciary which include the amount and nature of
personal data, potential harm to individuals' rights, effects on national
integrity, threats to electoral processes, concerns regarding national security,
and potential impact on societal stability.
Rights & Duties Of The Data Principal:
Not only the Data Fiduciary but the Data Principal too are entitled to certain
rights under this act to maintain a balance and effectiveness in the digital
world.
Rights:
The Data Principal has the right to request from a Data Fiduciary:
- A summary of the personal data being processed and the activities undertaken by the Data Fiduciary about that data.
- Information about other Data Fiduciaries and Data Processors with whom the personal data has been shared, along with descriptions of the shared data, is limited by the exception.
- Any other details related to the personal data and its processing, as prescribed, are limited by the exception.
- Right to correct, complete, update, and erase her data for which she has given consent, subject to legal requirements.
- The Data Principal has the right to easily access grievance redressal mechanisms provided by a Data Fiduciary or Consent Manager. This covers any actions or failures related to the Data Principal's data or her rights under the Act and its rules.
- The Data Principal has the right to designate another individual, as prescribed, who will exercise the Data Principal's rights under the Act and its rules in case of the Data Principal's death or incapacity.
Duties:
The Data Principal must:
- Adhere to all current laws when exercising rights under this Act.
- Provide personal data honestly and do not impersonate others for a specific purpose.
- Provide accurate information and do not withhold essential details for official documents issued by the State or its agencies.
- Refrain from submitting false or frivolous complaints to a Data Fiduciary or the Board.
- Only submit verifiably authentic information when exercising rights for correction or erasure under this Act or its rules.
Dispute Resolution:
Under the DPDP Act, Section 31 provides for the Alternative Dispute
Resolution(ADR) as the step to resolve the issue. It mentions: "If the Board
thinks that any complaint may be resolved by mediation, it may direct the
parties concerned to attempt resolution of the dispute through such mediation by
such mediator as the parties may mutually agree upon, or as provided for under
any law for the time being in force in India." (Justice, 2023) This statement
describes a procedure for resolving disputes through mediation as determined by
a Board within the framework of Indian law.
When the Board believes that a complaint can be resolved via mediation, it
instructs the disputing parties to attempt mediation. The parties involved are
then encouraged to mutually agree upon a mediator. If they cannot reach an
agreement, the mediator will be chosen according to the provisions of the
applicable laws in force in India. This approach aims to facilitate an amicable
resolution without the need for prolonged litigation.
Penalties & Liabilities For The Breach Of Data Privacy:
In an era where data is considered the new oil, safeguarding personal
information has become paramount. The proliferation of digital platforms and the
vast amounts of data they handle have necessitated stringent measures to protect
privacy. Consequently, the breach of data privacy is not merely an ethical
concern but a legal one, carrying significant penalties and liabilities.
These repercussions are designed to hold organizations accountable and ensure
they implement robust security measures to protect individuals' sensitive
information. Understanding the scope and implications of these penalties is
crucial for businesses and individuals alike, as the legal landscape continues
to evolve in response to emerging threats and technological advancements.
Apart from Schedule I concerning Section 31: Alternative Dispute Resolution" of
the DPDP Act (Justice, 2023), the Information & Technology Act, 2000, also known
as the IT Act, also lays down the punishment for such data breach activities.
Under this act, the following Sections deal with the penalty and punishment :
Section 43A, IT Act, deals with the "Compensation for failure to protect
data". It mentions, "Where a body corporate, possessing, dealing or handling any
sensitive personal data or information in a computer resource which it owns,
controls or operates, is negligent in implementing and maintaining reasonable
security practices and procedures and thereby causes wrongful loss or wrongful
gain to any person, such body corporate shall be liable to pay damages by way of
compensation to the person so affected." (IT ACT, n.d.)
This means, if a company or any similar entity (referred to as a "body
corporate") that owns, controls, or operates a computer resource containing
sensitive personal data fails to implement and maintain proper security
measures, and this negligence results in someone experiencing wrongful loss or
gain, the entity must compensate the affected person for the damages. In
essence, the law holds companies accountable for protecting sensitive personal
information. If they are negligent and this leads to harm, they must pay for the
resulting damages.
Section 66E, IT Act, deals with the "Punishment for violation of
privacy". It mentions, "Whoever, intentionally or knowingly captures, publishes
or transmits the image of a private area of any person without his or her
consent, under circumstances violating the privacy of that person, shall be
punished with imprisonment which may extend to three years or with fine not
exceeding two lakh rupees, or with both." (IT ACT, n.d.) This means, that the
unauthorized and intentional or knowing capture, publication, or transmission of
images of a person's private areas.
It emphasizes that such actions must be done without the person's consent and
under circumstances that violate their privacy. The law aims to protect
individuals from invasive and non-consensual photography or recording, which can
be highly intrusive and damaging. If someone is found guilty of this offense,
they can be punished with imprisonment for up to three years, a fine of up to
two lakh rupees, or both. This provision underscores the importance of
respecting personal privacy and provides a legal remedy against violations.
Section 72, IT Act, deals with the "Penalty for breach of confidentiality
and privacy". It mentions, "Save as otherwise provided in this Act or any other
law for the time being in force, any person who, in pursuance of any of the
powers conferred under this Act, rules or regulations made thereunder, has
secured access to any electronic record, book, register, correspondence,
information, document or other material without the consent of the person
concerned discloses such electronic record, book. register, correspondence,
information, document or other material to any other person shall be punished
with imprisonment for a term which may extend to two years, or with fine which
may extend to one lakh rupees, or with both." (IT ACT, n.d.)
This means any person who, without consent, discloses electronic records, books,
registers, correspondence, information, documents, or other materials accessed
under the powers granted by this Act or related regulations will face penalties
of up to two years in prison, a fine of up to one lakh rupees, or both.
Section 72A, IT Act, deals with the "Punishment for disclosure of
information in breach of lawful contract". It mentions, "Save as otherwise
provided in this Act or any other law for the time being in force, any person
including an intermediary who, while providing services under the terms of
lawful contract, has secured access to any material containing personal
information about another person, with the intent to cause or knowing that he is
likely to cause wrongful loss or wrongful gain discloses, without the consent of
the person concerned, or in breach of a lawful contract, such material to any
other person, shall be punished with imprisonment for a term which may extend to
three years, or with fine which may extend to five lakh rupees, or with both."
(IT ACT, n.d.)
This means any person or intermediary who, while providing services under a
lawful contract, accesses personal information about someone else and discloses
it without consent or in breach of the contract, intending to or knowing it
could cause wrongful loss or gain, shall be punished with up to three years in
prison, a fine up to five lakh rupees, or both.
Conclusion:
In an era of rapid digital transformation, India's diverse and populous
landscape is witnessing an unprecedented surge in digital technology adoption,
reshaping social interactions and business operations. The Digital Personal Data
Protection Act, of 2023, addresses the privacy concerns and risks that come with
increased data sharing on the internet. This Act establishes stringent
guidelines for the processing and protection of personal data, balancing
individual privacy rights with the necessity of data usage for lawful purposes.
It mandates that data fiduciaries serve notices and obtain consent from data
principals before processing their data, ensuring transparency and
accountability. The Act also empowers individuals with the right to access,
correct, and erase their data, providing robust mechanisms for grievance
redressal.
Moreover, the Act introduces alternative dispute resolution through mediation,
aiming to facilitate amicable resolutions without prolonged litigation. This is
crucial for maintaining trust in the digital ecosystem and ensuring that
disputes are resolved efficiently. By addressing both individual and business
perspectives on data usage and protection, the Act seeks to foster a secure
digital environment. These measures not only safeguard individual privacy but
also support technological advancements, ensuring that India can continue to
thrive in the digital age while protecting the rights and data of its citizens.
Frequently Asked Questions (Faqs):
Q.1. Can personal data be used for any purpose under the DPDP Act?
Ans. NO. Personal data can only be used for the specific purpose for which the
consent was given. The consent must be free, specific, informed, unconditional,
and unambiguous and it is limited to the personal data necessary for the
specific purpose.
Q.2. In which all circumstances, the DPDP Act is not applicable?
Ans. When personal data is processed by the Data Principal for any personal or
domestic purpose or is made or caused to be made publicly available by himself
or any other person who is under an obligation under any law for the time being
in force in India to make such personal data publicly available.
Q.3. Under what grounds can the personal data be possessed?
Ans. It can only be possessed when retained for a lawful purpose and with the
consent of the Data Principal.
Q.4. Does the IT Act,2000 have an overriding effect on the DPDP Act,2023?
Ans. No. According to the Proviso to Section 81, IT Act, 2000, has been amended
by this act to exclude the DPDP Act, 2023 from the overriding power of the IT
Act, 2000.
Q.5. In case of a conflict between a provision of this Act and a provision of
any other law currently in effect, what will be the outcome?
Ans. The provisions of this Act shall be in addition to and not in derogation of
any other law for the time being in force. When a conflict arises between a
provision of this Act and any provision of another law currently in force, the
provision of this Act will take precedence to the extent of that conflict. This
ensures that the rules and principles established in this Act hold sway in
situations where there might be inconsistency with other existing laws.
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