The journey towards enacting privacy legislation in India has been a lengthy and challenging endeavour, involving extensive discussions and multiple drafts.

In 2017, Justice K. S. Puttaswamy (Retd.) and Anr. vs Union of India and Ors.[1], the case recognised the ‘Right to Privacy’ as an essential component of Article 21 (Right to life and personal liberty).  It was a pivotal moment in the history of the Constitution of India.

Legislative Background

In July 2017, the Ministry of Electronics and Information Technology established a committee that was led by retired Supreme Court Justice B.N. Srikrishna. By July 2018, this committee had prepared a preliminary version of the Personal Data Protection Bill, 2018 which was approved by the cabinet following extensive discussion and revisions. However, in December 2019, the government again introduced the Personal Data Protection Bill, 2019, which was later withdrawn by the Central Government in light of the Joint Parliamentary Committee’s detailed report that recommended 81 amendments. This decision was made in August 2022, as part of the government’s effort to develop a comprehensive legal framework for data protection.

Following this, a draft version of the Digital Personal Data Protection Bill, 2022 was made available for public consultation. Subsequently, a revised version of the Digital Personal Data Protection Bill, 2022 was formally presented. On August 11, 2023, it gained assent from the President of India, officially becoming the Digital Personal Data Protection Act, 2023[2].

With the rapid evolution of technology, the protection of personal data has never been more critical. In response to these changing times, governments worldwide are enacting comprehensive data protection laws, and the Digital Personal Data Protection Act, 2023 (“DPDPA”) is no exception. Complying with such regulations can be a daunting task for businesses, but there’s a silver lining: legal tech. Legal tech can help in various ways ensuring that there is effective compliance with the Act at every stage.

Understanding the DPDPA 2023:

The primary objective of the Digital Personal Data Protection Act, 2023 is to establish a comprehensive framework for the protection and processing of personal data;

• Personal data[3] means “any data about an individual who is identifiable by or in relation to such data”.
• The Act shall apply to the processing of personal data in India, including both online and digitized offline data[4].
• It further extends to the processing of such data outside India relating to the offering of goods or services in India.

The Act imposes a hefty penalty for non-compliance or breach of certain obligations or duties with an upper limit of Rs. 250 crores. This makes adherence to the relevant provisions mandatory and provides a powerful incentive for the persons collecting and processing personal data to invest majorly in compliance and data protection mechanisms.

In today’s fast-paced and increasingly complex business environment, compliance record keeping has become more intricate and demanding than ever before. Organizations must adhere to an ever-expanding array of laws and regulations, spanning industries from finance to healthcare. Keeping meticulous records of compliance activities is not just a matter of good practice; it is often legally mandated. Failing to maintain accurate compliance records can result in severe legal consequences, financial penalties, and reputational damage.

Legal tech tools and solutions have emerged as indispensable allies in this endeavour. They offer various benefits, such as automation of compliance workflows, real-time monitoring of regulatory changes, and the ability to ensure consistency and accuracy in record keeping. Additionally, these technologies enable the efficient retrieval and analysis of compliance data, aiding in audits and investigations.

How Legal Tech can aid in easing your DPDP Act journey?

1. Data Mapping and Inventory:

One of the fundamental aspects of data protection compliance is knowing where your data resides and how it is being processed. Legal tech tools can simplify this process by automating data mapping and inventory management. They can help you identify the personal data your organization collects, stores, and processes as well as record where third-party recipients of such shared personal data are located by flagging international data transfers and streamlining the compliance process. The legal-tech community is bringing multiple solutions to market which address these challenges including data mapping and inventory software[5].

2. Privacy Impact Assessments (PIAs):

Under the DPDPA 2023, conducting Privacy Impact Assessments (“PIA”) is crucial, especially when introducing new data processing activities. PIA refers to the obligation of the controller to conduct a data protection assessment when the processing could result in a high risk to the rights and freedoms of natural persons and to document it before starting the intended data processing. Legal tech platforms often include templates and workflows for conducting PIAs, making it more efficient and ensuring that you’ve considered all necessary factors[6].

3. Consent Management:

Managing consent is a key requirement of many data protection laws, including the DPDPA, 2023. Legal tech solutions can simplify the process of obtaining, tracking, and managing user consent by documenting and managing a user’s consent choices prior to collecting and sharing user data from online sources such as websites and apps that use cookies.  Automated consent management tools can ensure you have documented proof of consent for each data processing activity.

4. Data Breach Response:

In the unfortunate event of a data breach, a swift and effective response is essential. Technology can streamline your data breach response by providing predefined incident response plans, facilitating communication with data protection authorities, and ensuring timely notifications to affected individuals[7].

5. Automated Compliance Tracking and Reporting:

The DPDPA 2023 mandates regular reporting to demonstrate compliance. Legal tech platforms can help map compliance requirements[8], track deadlines, generate compliance reports and even automate submissions to relevant authorities, reducing the administrative burden and minimizing the risk of non-compliance[9].

Conclusion:

Navigating the complexities of the Digital Personal Data Protection Act, 2023 can be challenging, but with the right legal tech tools, your journey to compliance becomes significantly more manageable. By automating tasks, providing templates, and ensuring you stay on top of deadlines, legal tech can empower your organization to protect personal data while maintaining efficiency. As the regulatory landscape continues to evolve, investing in legal tech can be a wise choice for any business committed to data protection and compliance.

Incorporating legal tech into your data protection strategy can be a game-changer, simplifying your compliance journey and helping you stay on the right side of the law. As you embark on your DPDPA 2023 compliance journey, consider how legal tech can be your trusted ally in safeguarding personal data and building trust with your customers.

[1] AIR 2017 SC 4161

[2] https://egazette.gov.in/WriteReadData/2023/248045.pdf

[3] Section 2(t)

[4] Section 3

[5] Eg: OneTrust and TrustArc

[6] Eg: Collibra and TrustArc

[7] Eg: Canopy

[8] Complius – a comprehensive compliance management software

[9] See: ManageEngineEventLog Analyzer as an example of compliance reporting software