The DPDP Act marks a significant shift in India’s approach to data governance, aiming to build a safer and more secure digital environment. Amid rapid digital transformation, the misuse of personal data has emerged as a notable concern, prompting the urgent need for a structured regulatory framework.
Addressing this need, the Ministry of Electronics and Information Technology (MeitY) introduced the Digital Personal Data Protection (DPDP) Act, 2023, an extensive framework designed to replace the fragmented data protection norms with a unified, consent-based framework.
Let’s walk through what the DPDP Act expects, what digital consent means in practice, and how your organization can stay compliant without compromising user trust
What Is the DPDP Act, and Why Does It Matter Now?
The DPDP Act was designed to address a major gap in India’s data protection framework. Although the digital services have expanded significantly over the past decade, clear rules governing how companies can collect, store, and use personal data were lacking.
That changed with this Act.
Built on the idea that privacy is a fundamental right, the DPDP Act brings India closer to global frameworks, such as the EU’s GDPR, but with a localized approach. It recognizes that users deserve clarity, control, and confidence over how their data is used, especially in a country with diverse languages, literacy levels, and digital access.
What Counts as Digital Consent Under the DPDP Act?
Consent under this law isn’t passive. It’s active, clear, and specific. Organizations can no longer assume silence is acceptance or hide terms behind long-winded privacy policies.
Think of a scenario where you download a fitness app. If it asks for access to your location, contacts, and health data in one go, without explaining why, that’s not valid consent anymore.
Here are a few pointers that come under the DPDP Act, valid digital consent must be:
1) Freely given – Not bundled with unrelated services or forced upon users
2) Informed – Users must clearly understand what data is being collected and why
3) Specific – Consent applies only to the stated purpose, not blanket access
4) Unambiguous – There must be clear affirmative action (like ticking a box)
5) Revocable – Users can withdraw consent at any point, and the business must respect it
Who Is the Data Principal?
At the centre of the DPDP Act is the Data Principal, that’s you and me, the individuals whose data is being collected.
The Act defines a Data Principal as any individual to whom the personal data relates. So, if you sign up for an e-commerce website, share your name, email, and preferences, that makes you the Data Principal.
Rights of the Data Principal:
As a Data Principal, you now have a stronger voice than ever before. You have the right to:
1) Access your data – Know what data is being collected
2) Correct your data – Ask for errors to be fixed
3) Erase your data – Request deletion when it’s no longer needed
4) Nominate a representative – In case you’re incapacitated
5) Withdraw consent – Anytime, for any reason
Let’s say you once subscribed to an online magazine but no longer use it. Under the DPDP Act, you can ask them to erase your details, and they must comply.
So, What Does Compliance Look Like for Businesses?
To comply with the DPDP Act’s digital consent rules, organizations will need to move beyond the basics. Consent must be operationalized across systems, teams, and customer journeys.
Here’s what that looks like in practice:
Transparent Consent Notices
Users should be able to understand what they’re agreeing to at a glance, not after scrolling through pages of jargon.
1) Use simple, clear language
2) Break it down by purpose (e.g., marketing, analytics, service delivery)
3) Offer notices in regional languages when possible
If your users don’t understand your consent prompt, you’re already at risk.
Granular User Control
Give users the ability to choose what they share—and with whom. For example:
1) One checkbox for email updates
2) Another for third-party sharing
3) A separate one for behavioural tracking
This shows respect, and more importantly, it builds trust.
Consent Logs and Audit Trails
Organizations must now record and store every consent interaction. This includes:
1) Timestamped records of when and how consent was given
2) Version control of what privacy notice shown at that time
3) Records of when and how consent was withdrawn
Think of this as your compliance safety net; it’s what you’ll need in case of audits or investigations.
Easy Consent Withdrawal
Withdrawing consent must be as easy as giving it. If users can sign up with one click but need to send three emails to opt out, that’s non-compliance.
Set up:
1) User dashboards or preference centers
2) “Manage my data” options
3) Easy-to-find revocation buttons
Remember, a frictionless exit builds confidence in your onboarding, too.
Also Read: The Hidden Cost of API Chaos: Why Companies must rethink vendor integration strategies
What the DPDP Act Means for Data Fiduciaries and Consent Managers
Data Fiduciaries
The Act defines Data Fiduciaries as any person or entity that determines how and why personal data is processed. That includes most businesses, platforms, service providers, and even startups.
You’ll be expected to:
1) Process only the necessary data
2) Appoint a Data Protection Officer (DPO) if you’re classified as a Significant Data Fiduciary
3) Provide grievance redress mechanisms
4) Cooperate with audits and investigations
Consent Managers
In addition, the Act introduces Consent Managers, government-recognized intermediaries who help users manage their consents across platforms. Integration with these Consent Managers may become essential, especially for apps handling large volumes of personal data.
Let’s say you’ve given your data to five different apps. Instead of visiting each one, a Consent Manager helps you manage all your consents from one place, kind of like a privacy control panel.
Children’s Data? Stricter Rules Apply
For individuals under 18, the DPDP Act sets a higher bar. Businesses are required to:
1) Obtain verifiable parental consent before collecting data
2) Avoid targeted ads, tracking, or behavioral nudging of minors
3) Not process data in a way that is detrimental to their well-being
If your business engages with young users, compliance is not just a legal duty—it’s an ethical one.
Cross-Border Data Transfers: Yes, But With Conditions
The Act does allow the transfer of personal data outside India, but with a key condition: the destination countries must be approved by the central government.
That means global platforms and SaaS providers working with Indian users will need to:
1) Verify country-specific permissions
2) Maintain traceable consent records
3) Align with India’s data sovereignty guidelines
What Happens If You Don’t Comply?
The penalties are steep. Non-compliance can result in:
1) Fines up to ₹250 crore
2) Government-ordered takedowns or platform restrictions
3) Lawsuits, investigations, and brand damage
And let’s not forget the loss of customer trust, which in today’s privacy-conscious climate, can be more damaging than the fine itself.
Digital Consent as a Competitive Advantage
Yes, compliance is critical, but smart businesses are viewing this moment as more than just a regulation. It’s a chance to reset the user relationship.
By getting digital consent right, you’re not just ticking a legal box. You’re:
1) Empowering users
2) Creating transparency
3) Enhancing brand credibility
In an increasingly privacy-aware digital world, this could be your edge.
Final Thoughts: Make Consent a Culture, Not a Click
The DPDP Act is a milestone, not just for data privacy law, but for how India views digital dignity. Organizations that take this seriously will thrive in a future where ethical data practices define business leadership.
Start by reviewing your consent flows. Simplify your language. Be transparent about data purposes. Enable easy opt-outs. And, most importantly, build systems where respecting user choices is the default, not the exception.
After all, in the digital world, trust is currency, and consent is how you earn it.
Frequently Asked Questions
1) What is digital consent under the DPDP Act?
Digital consent must be freely given, informed, specific, unambiguous, and revocable. It is the legal basis for processing personal data in most cases.
2) What is a Data Fiduciary?
Any entity that decides how and why personal data is processed. Most businesses fall under this definition.
3) What happens if a user withdraws consent?
You must stop processing their data immediately, unless there’s a legal obligation to retain it.
4) Does the DPDP Act apply to foreign companies?
Yes. Any company that processes personal data of Indian users must comply, regardless of where they’re based.
5) What is the role of a Data Protection Officer (DPO)?
A DPO ensures the organization complies with the DPDP Act and handles user grievances and audits.
6) What is a Consent Manager?
A government-authorized platform that helps users manage and revoke consents across services.
