Describe the context and salient features of the Digital Personal Data Protection Act, 2023.
The Digital Personal Data Protection Act (DPDP Act), 2023, emerged from a critical need to safeguard individual privacy in India's rapidly expanding digital economy, especially after the Supreme Court's landmark Puttaswamy judgment declared privacy a fundamental right. With vast amounts of personal data being collected and processed, a robust legal framework was essential to prevent misuse and ensure accountability.
Its salient features include:
Data Fiduciary and Data Principal: Clearly defines the entity processing data (Fiduciary) and the individual whose data is processed (Principal).
Consent: Mandates explicit, informed consent for processing personal data, with provisions for withdrawal.
Purpose Limitation: Data can only be processed for the specific purpose for which consent was given.
Data Minimisation: Only necessary data should be collected.
Data Protection Board of India: Establishes an independent body to enforce the Act and adjudicate disputes.
Significant Penalties: Imposes substantial monetary penalties for non-compliance and data breaches, fostering accountability.
Cross-border Data Transfer: Allows transfer of personal data to notified countries, balancing global data flows with security.
The Act aims to create a framework that balances individual privacy rights with the legitimate needs of businesses for data processing.
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