ARTICLE
15 January 2025

Penalties Under India's Data Protection Law DPDPA 2023

ZG
Zou Global Services

Contributor

As leading data privacy consultants, we specialize in empowering organizations of all sizes to navigate the intricate landscape of data protection. With our unwavering commitment to safeguarding sensitive information and ensuring compliance with ever-evolving regulations, we’re the trusted partner you can rely on for all your Data Privacy Compliance as well as other data privacy needs.

At Zou Global Services, ensuring data compliance standards isn’t just our expertise – it’s our passion. Our team of seasoned professionals, including data compliance experts, legal advisors, and IT specialists, bring years of experience to the table. This rich blend of skills allows us to offer comprehensive data compliance services in India that span various sectors and industries.

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.
India Privacy

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More