Data Privacy Laws in India: What Marketers Need to Know About DPDP Act 2023

The Digital Personal Data Protection Act 2023 is reshaping how marketers collect, process, and use customer data. Non-compliance isn't just risky—it's expensive, with penalties up to ₹250 crore.

Understanding DPDP Act 2023

Passed in August 2023, the act governs digital personal data processing in India. It affects every business collecting customer data digitally.

Key Provisions for Marketers

#Consent Requirements

Explicit Consent: Pre-ticked boxes are illegal. Users must actively opt-in.

Granular Consent: Separate consent for different purposes (marketing, analytics, sharing).

Withdrawal Rights: Users can withdraw consent anytime—you must honor it immediately.

#Data Principal Rights

Customers (data principals) have the right to:

• Access their data

• Correct inaccuracies

• Erase data (with exceptions)

• Data portability

• Grievance redressal

#Data Fiduciary Obligations

Businesses (data fiduciaries) must:

• Process data only for specified purposes

• Implement security safeguards

• Delete data after purpose fulfillment

• Notify breaches promptly

Impact on Marketing Practices

#Email Marketing

Before DPDP: Buy email lists, send to anyone

After DPDP: Only email confirmed opt-ins, maintain consent records

#Retargeting

Before DPDP: Track users across sites freely

After DPDP: Explicit consent for tracking cookies required

#Lead Generation

Before DPDP: Collect maximum data "just in case"

After DPDP: Collect only necessary data for stated purpose

#Third-Party Data Sharing

Before DPDP: Share with partners freely

After DPDP: Specific consent for each sharing instance

Compliance Checklist

#Website Compliance

• [ ] Updated privacy policy

• [ ] Cookie consent banner

• [ ] Consent management platform

• [ ] Data request forms

• [ ] Security measures (SSL, encryption)

#Marketing Operations

• [ ] Consent tracking system

• [ ] Data retention policies

• [ ] Vendor agreements updated

• [ ] Employee training completed

• [ ] Breach response plan

#Documentation

• [ ] Privacy impact assessments

• [ ] Data processing records

• [ ] Consent logs

• [ ] Third-party contracts

• [ ] Security audits

Penalties for Non-Compliance

#Financial Penalties

• Data breach: Up to ₹250 crore

• Non-compliance: Up to ₹250 crore

• Repeated violations: Higher penalties

#Business Impact

• Reputation damage

• Customer trust loss

• Competitive disadvantage

• Legal proceedings

Best Practices for Compliance

#1. Privacy by Design

Build privacy into campaigns from conception, not as afterthought.

#2. Data Minimization

Collect only what's necessary. "Nice to have" data is a liability.

#3. Transparent Communication

Clear, simple language in privacy notices. No legal jargon.

#4. Regular Audits

Quarterly reviews of data practices and compliance status.

#5. Employee Training

Everyone handling data needs DPDP awareness training.

Marketing Strategies for DPDP Era

#First-Party Data Focus

Build direct relationships rather than relying on third-party data.

#Value Exchange

Offer clear value for data—exclusive content, discounts, personalization.

#Progressive Profiling

Collect data gradually over time rather than all upfront.

#Consent-Based Personalization

Ask users what they want to see rather than assuming.

Technology Solutions

#Consent Management Platforms (CMPs)

Automate consent collection, storage, and enforcement.

#Customer Data Platforms (CDPs)

Centralize data management with built-in compliance features.

#Privacy-Enhancing Technologies

Differential privacy, homomorphic encryption, federated learning.

Industry-Specific Considerations

#E-commerce

Transaction data retention limits, customer profiling restrictions.

#Healthcare

Sensitive data provisions, additional safeguards required.

#Financial Services

Intersection with RBI guidelines, KYC requirements.

#EdTech

Children's data protection, parental consent requirements.

Action Steps

1. Audit current data practices

2. Update privacy policies and notices

3. Implement consent management

4. Train your team

5. Document everything

How We Can Help

Wit&Wire Media offers DPDP compliance services:

• Compliance audits

• Policy development

• Technology implementation

• Team training

• Ongoing monitoring

Don't let compliance slow your marketing—let it enhance customer trust and drive better results.