DPDPA
DPDPA
Definitions:
Digital Data
Data Processing
Data Fiduciary: Entities that collect, process, store, or manage personal data.
Data Principal: The individual whose personal data is collected.
Personal Data: Any information that can identify a person.
Sensitive Data: Information like health, financial, biometric data.
Critical Data: Data requiring storage only in India.
Scope and Applicability:
Applies to all businesses operating in India that handle personal data.
Covers cross-border data transfers with specific conditions.
Obligations of Data Fiduciary
Composition:
Chairperson and members with expertise in data protection, technology,
law, and security.
Role and Responsibilities:
Investigate complaints and violations related to data protection.
Ensure compliance with DPDPA 2023.
Issue directives and impose penalties on violators.
Powers of the Board:
Powers to audit and inspect data fiduciaries.
Order the rectification of non-compliance.
Impose fines and penalties.
Powers, Functions, and Procedures of the
Board
Powers:
The Board can issue show cause notices, orders for compliance, and
penalties for non-compliance.
Investigate complaints of violations and data breaches.
Functions:
Conduct investigations and enforce compliance with the DPDPA.
Promote awareness and understanding of data protection.
Facilitate dispute resolution between data principals and data fiduciaries.
Procedure:
Individuals can file complaints with the Board for data violations.
Board will follow due process to investigate complaints, including issuing
notices and conducting hearings.
Appeal and Alternate Dispute Resolution
Appeals:
Appeal Mechanism: Decisions of the Data Protection Board can be
appealed to the Appellate Tribunal.
The Appellate Tribunal will review the Board’s order and can affirm or
modify the decision.
Alternate Dispute Resolution (ADR):
Encourage mediation and conciliation before moving to formal
adjudication.
ADR mechanisms may help resolve issues faster and more efficiently.
Penalties and Adjudication
Penalties:
The Board can impose heavy fines on non-compliant data fiduciaries:
Up to ₹250 crore (approx. USD 30 million) for severe violations.
Smaller penalties for lesser breaches, like failure to report data breaches on
time.
Adjudication:
If a data fiduciary fails to comply with Board orders, the matter can be
referred for adjudication in specialized courts.
Penalty amounts depend on the nature and seriousness of the breach.
Impact on Businesses