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Nature

DPDPA And Business
Discontiniuity

faq

Understanding DPDPA's Impact on Business Discontinuity

The Digital Personal Data Protection Act (DPDPA) poses a significant challenge for Indian companies, with the potential for business disruptions if compliance isn't maintained. One of the biggest hurdles is the increasing difficulty of obtaining valid consent from data principals. To remain compliant and continue business operations, companies must adopt lawful approaches for engaging with data principals.

Key Issue: Determining the right approach and timing. Companies must establish a legal basis for processing personal data, choosing between consent or legitimate interest as the foundation for their activities. The law mandates that a legal basis be set before any outreach — whether it’s a phone call or an email.

  • Consent: Opting for consent means obtaining the data principal’s explicit, freely given, informed, and unambiguous agreement for data processing. It must be clear and specific to the intended purpose.
  • Legitimate Interest: If using legitimate interest as your basis, it’s vital to ensure that your interests do not override the rights of the data principal. You must assess how your business activities impact the individual, the methods of processing, and the reasonable expectations of the data principal. Crucially, their rights always take precedence.

The real challenge lies in effective implementation. How can your communication strategies adapt to ensure compliance under the DPDP Act? How will you engage with clients and prospects in this new regulatory environment? And what’s your approach if a data principal exercises their right to erasure of personal data?

Navigating the intricacies and nuances of the new Digital Data Protection Act can be complex. Our expert team is here to help you achieve compliance, avoid penalties, and build lasting trust with your customers.