Obligations of Data Fiduciaries under the DPDP Act

The DPDP Act defines a data fiduciary as any individual or group responsible for deciding the purpose and means of processing personal data - this concept resembles data controller in other laws. A significant data fiduciary will have additional obligations depending on its size and sensitivity of data it processes as well as national concerns like its potential impact on electoral democracy, sovereignty, public order or security.

Significant data fiduciaries must, among other requirements, hire an independent data auditor and conduct periodic data audits. Furthermore, they should designate a Data Protection Officer as well as conduct data protection impact assessments on both their own behalf and with joint controllers.

The DPDP Act gives data principals certain enumerated rights, though these are more limited than what's provided under modern GDPR-style legislation. According to its mandate, data fiduciaries must establish readily available mechanisms for data principals to exercise their rights and publish clear timelines for resolving grievances.

Consent Management

Significant Data Fiduciaries must not only abide by DPDP Act regulations, but should also adopt enhanced transparency measures. This includes providing detailed privacy notices to their principals containing information on how their personal information will be processed and shared; data fiduciaries should ensure data processing takes place with maximum confidentiality ensuring third-party processors adhere to similar standards of operation.

SDFs must keep records of the types of personal data they process, conduct regular audits to assess compliance with the DPDP Act, and report back the results to Data Principals.

SDFs must also implement systems for real-time monitoring of data breaches and establish notification protocols that enable them to notify both the DPB and affected data principals within legally mandated time frames. They must also make contact details readily available to affected parties in order for complaints and inquiries to reach them quickly, while offering voluntary undertakings if found violating DPDP Act requirements.

Notification of Data Breaches

If your company handles sensitive personal information in large volumes, the government could classify you as a Significant Data Fiduciary. This classification encompasses tech companies that manage millions of user accounts, financial institutions that handle critical banking data, healthcare providers storing sensitive medical records etc.

Following any breach, Social Development Funds must notify all affected individuals promptly. They should include information on what type of data was compromised, what measures have been taken to investigate and address it, as well as provide contact details in case there are further inquiries or inquiries from individuals about what has happened. Furthermore, SDFs are required to inform all nationwide consumer reporting agencies without delay of the incident.

Voluntary Undertaking

As personal information becomes more digitised in today's world, protecting individual privacy and upholding ethical data processing practices have never been more crucial. The Data Privacy Protection Act of 2023 establishes a strong framework to guarantee these rights by mandating companies classified as Significant Data Fiduciaries to comply with stringent requirements.

Data Principals must obtain valid consent before providing their data for use and sharing with third-parties, while fiduciaries must ensure there is an effective process in place for redressing grievances. Therefore, businesses should develop strong incident response protocols and communication strategies so as to meet their legal obligations for breach notifications on time.