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Explained | What is the Data Protection Bill of 2023?


The story so far:

The journey towards a data protection legislation can be traced back to 2017 when an expert committee was constituted by the Ministry of Electronics and Information Technology (MeiTY). The major development came in December 2021 when the Data Protection Bill, 2021 (DPB, 2021) was released. However, it was withdrawn in Parliament by Minister for Communications and Information Technology Ashwini Vaishnaw on August 3, 2022. On November 18, 2022, a draft of the Digital Personal Data Protection Bill, 2022 (DPDPB, 2022) was released for public consultation. The submissions made under this consultation process were not made public. The request to publicly release the submissions was also denied in a Right to Information application. One year on, the 2023 Bill has been tabled in Parliament without clarifying how and on what basis these changes were incorporated.

Who does it protect?

In a first, the new Bill introduces duties and penalties on a data principal (DP). Clause 11 of Chapter III states that the DP has the right to request from the data fiduciary (DF), a summary of the personal data being processed, identities of all the DF with whom its personal data has been shared and so on, subject to a few exceptions. Under Clause 12, users can seek correction, completion, update and erasure of their personal data. Interestingly, the provision which allowed a DF to reject this request has been removed. Users have also been given the right of grievance redressal (Clause 13) and the right to nominate another individual in the event of death or incapacity to exercise their rights (Clause 14).

While the impetus for a data protection legislation must be to protect a DP’s personal data from being unwittingly exploited, the Bill appears to be designed in a manner that this protection is compromised. Interestingly, the Bill further goes on to impose duties and penalties on the DP.

To exemplify the above, Clause 15(d) of this chapter states that the DP must ensure not to register a false or frivolous grievance or a complaint with a DF or the Data Protection Board (DPB), and failure to adhere with this may enable a penalty of ₹10,000 (Chapter VIII). This is an onerous obligation which may effectively prevent a DP from raising grievances.

Who does it exempt?

Data breaches are becoming regular occurrences. It was reported in June 2023 that a major privacy breach with respect to the CoWIN portal had taken place and personal details of vaccinated users had been leaked on Telegram. Recently, in July 2023, about 12,000 confidential records of State Bank of India employees were reportedly made public on Telegram. In view of this, a cause of great concern that arises in the Bill is the exemption under Clause 17(2)(a) which, if notified, is granted to the government and its authorities.

On five specified grounds, the Bill exempts government authorities, as notified, marking a discernible expansion of the scope of exemption. Personal data which is processed for research, archiving, or statistical purposes will also be exempted under Clause 17(2)(b).

While previous iterations of the Bill also provided exemptions, this has now been broadened to state that data processing undertaken by the Union government on information provided to it by an exempted instrumentality will continue to remain exempted from the purview of this law.

What does it seek to amend?

The changes that the Bill seeks to implement by way of Clause 44 are significant. For instance, Section 43A of the Information Technology Act, 2000 (IT Act) imposes an obligation on corporates to award damages to affected persons in case of negligent handling of their sensitive data. Clause 44(2) of the Bill aims to exclude the application of Section 43A, thereby rendering an individual who has suffered breach of their data without any relief.

Clause 44(3), which seeks to amend the entire Section 8(1)(j) of the Right to Information (RTI) Act, 2005 and replace it with “information which relates to personal information”, has received heavy criticism from stakeholders. Previously, qualifiers existed which narrowed the information that could be withheld by the public information officers. Now, the removal of “has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual” widens the scope of withholding information.

Does it protect users?

A widely appreciated departure from the previous iterations is the DF’s obligation to notify the DP in case of personal data breach. Other obligations imposed on DF include notifying the DP about the purpose for which their data may be processed, and the manner in which they may make a complaint to the DPB, withdraw consent, and seek grievance redressal.

However, as discussed before, there is a deviation from DPB 2021 with removal of the provision for compensating a user affected by personal data breach. In further departure, Clause 5, which outlines notice obligations on DF does not mandate them to inform DPs about data being shared with third-parties, duration of storage of data, and transfer of data to other countries. Lack of obligation on the part of DF to notify DP at the offset makes the DP’s right to obtain information pertaining to their personal data perfunctory.

“The assumed consent framework of DPDPB, 2023, on the other hand, remains unchanged. In place of using the term “deemed consent”, which was present in DPDPB, 2022, Clause 7 uses the term “certain legitimate uses”, which outlines the various situations in which personal data may be processed without obtaining the DP’s informed consent. The DPDPB, 2023 fails to differentiate between “personal data” and “sensitive personal data”, consequently negating the elevated level of protection associated with the latter.” Chapters V and VI deal with the DPB which is the primary authority for ensuring that DPDPB, 2023, is upheld. DPB’s independence has also been in question since the 2019 version. DPDPB, 2023, mandates all its members to be appointed by the Union Government. A favourable evolution is the clarification that salary, allowances, and other terms of service of DPB members cannot be varied to their disadvantage post appointment. However, only adjudicatory and not regulatory powers have been bestowed upon the DPB.

Radhika Roy is the Associate Litigation Counsel and Tejasi Panjiar is the Associate Policy Counsel at Internet Freedom Foundation.


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