Understanding the penalties for non-compliance with India's Digital Personal Data Protection Act (DPDPA) is essential for businesses handling personal data, including websites using cookies. This article explores the prescribed penalties, particularly focusing on violations related to transparency in cookie usage and the responsibilities of data fiduciaries.
Prescribed Penalties
The DPDPA outlines specific penalties for violations of data protection regulations, ensuring accountability and deterrence against non-compliance. These penalties are categorized based on the nature and severity of the violations, ranging from fines for individual breaches to significant penalties for security and data breach violations.
1. Fines for Violations by Data Principals
- Violations committed by data principals, such as individuals or entities controlling the data, may result in fines of up to INR 10,000. This penalty underscores the importance of accountability at all levels of data handling.
2. Fines for Violations without Prescribed Penalties
- Violations where no specific penalties are prescribed can incur fines of up to INR 50 crore. This category encompasses a wide range of infractions, including failures to comply with transparency requirements, such as disclosing cookie usage to website visitors.
3. Fines for Security and Data Breach Violations
- Security and data breach violations are subject to the most severe penalties, with fines of up to INR 250 crore. This underscores the critical importance of safeguarding personal data and implementing robust security measures to prevent breaches and unauthorized access.
Transparency in Cookie Usage
Non-compliance with transparency requirements regarding cookie usage can lead to significant financial penalties under the DPDPA. Websites must be diligent in informing visitors about their use of cookies to avoid falling afoul of regulatory requirements and facing potential fines.
Responsibilities of Data Fiduciaries
Data fiduciaries, entities responsible for determining the purpose and means of processing personal data, bear the ultimate responsibility for compliance with data protection regulations. They must ensure transparency in their data handling practices, including cookie usage, to mitigate the risk of penalties imposed by the Data Protection Board.
Negotiating Contracts with Data Processors
Data fiduciaries must exercise caution when negotiating contracts with data processors, as they may be held liable for any violations committed by the processors. It is essential to establish clear terms regarding data handling and security measures to minimize legal and financial risks associated with non-compliance.
Mitigating Legal and Financial Risks
By prioritizing transparency, accountability, and robust data protection measures, data fiduciaries can mitigate the legal and financial risks associated with non-compliance. Proactive measures, such as thorough contract negotiations and comprehensive data handling policies, are crucial for maintaining compliance and avoiding penalties.
Originally published 8 February 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.