Introduction
India’s
Digital Personal Data Protection Act, 2023 (DPDPA) represents a milestone in the country’s data privacy journey. It introduces a rights-based approach to personal data processing and imposes substantial obligations on entities known as “data fiduciaries.” At the heart of this framework lies the concept of transparency through privacy notices—a fundamental tool that enables users to make informed decisions about their data.
As organizations gear up for compliance, one of the first and most visible changes they must undertake is rethinking their privacy notices—moving away from generic legal disclaimers and towards user-friendly, purpose-specific, and rights-focused communication. This article explores in depth what needs to change, why it matters, and how to operationalize these changes.
Why Privacy Notices Matter Under DPDPA
Under Section 5 of the DPDPA, a data fiduciary must provide a notice to the data principal (user) before requesting their consent. This notice must:
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Clearly state the purpose for data processing,
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Outline how the data principal can exercise their rights,
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Provide mechanisms for filing complaints or grievances, and
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Share the contact details of the Data Protection Officer (DPO) or responsible person.
Unlike older laws where the onus was on the user to interpret dense legalese, the DPDPA shifts the responsibility to the data fiduciary to ensure that users are genuinely informed.
What Needs to Change—and Why
1. Language Must Be Clear, Concise, and Actionable
Traditional privacy notices often use dense, legalistic language that most users skim or ignore. The DPDPA mandates a plain language approach to ensure accessibility across different levels of digital literacy.
What this means:
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Use active voice and short sentences.
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Avoid legal jargon or define it if necessary.
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Structure the notice using headers, bullet points, and visual cues.
Why it matters:
Clear communication builds trust, reduces the risk of complaints, and ensures that consent is informed and valid under the Act.
Instead of: “Your data may be used for lawful business purposes”
Use: “We use your contact number to confirm orders and send delivery updates.”
Advanced Tip: Consider testing your privacy notice for readability (e.g., Flesch-Kincaid score) and adjust wording for an 8th-grade comprehension level.
2. Purpose Statements Must Be Specific and Granular
DPDPA adopts a purpose limitation principle, meaning that data can only be collected and used for explicitly defined and lawful purposes. This prevents blanket collection for vaguely worded goals like “improving services.”
What this means:
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Articulate each processing purpose separately.
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Break down which data is used for which purpose.
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Avoid combining multiple unrelated purposes into one clause.
Why it matters:
This ensures transparency and limits the organization’s liability in the event of misuse or breach.
✅ “We collect your Aadhaar number to verify your identity under RBI regulations.”
❌ “We collect your personal information for regulatory and operational needs.”
Advanced Tip: Create a purpose-data matrix during data mapping exercises to trace each data element to its use case.
3. Contextual and Real-Time Notices Are Now a Must
The DPDPA expects that privacy notices be delivered just-in-time—before or at the moment of data collection—rather than buried in a long static policy.
What this means:
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Display short, specific notices when requesting data via forms or apps.
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Link to the full policy from every mini notice.
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Use modal windows, tooltips, or consent boxes integrated into the user experience.
Why it matters:
Timely and contextual notice enhances user comprehension and strengthens the legal defensibility of consent.
Example: Before accessing the phone’s location, display:
“We need your location to show nearby diagnostic centres. You can disable this anytime.”
Advanced Tip: Use UI/UX techniques like progressive disclosure—starting with a summary and allowing users to expand sections if they want more detail.
4. Multilingual and Inclusive Communication is Crucial
Given India's linguistic diversity, Section 5(2) of the DPDPA encourages organizations to provide notices in English and other languages listed in the Eighth Schedule of the Constitution, wherever necessary.
What this means:
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Identify the predominant languages spoken by your user base.
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Provide language preferences during sign-up or onboarding.
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Ensure translations are accurate and culturally sensitive.
Why it matters:
Failure to communicate in a user’s preferred language may render the consent invalid and increase exclusion risks—especially in healthcare, finance, and government services.
Example: Offer language toggle buttons and visual iconography to enhance comprehension among semi-literate users.
Advanced Tip: Use language analytics to track which versions of the notice are accessed most and optimize accordingly.
5. Users’ Rights Must Be Explained in Practical Terms
The
DPDPA gives users rights to access, correction, erasure, grievance redressal, and nomination. Your notice should explain these rights in a way that is both easy to understand and act upon.
What this means:
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List each right clearly.
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Include clickable links or buttons for each action (e.g., “Update My Info”).
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Provide realistic timelines and grievance escalation steps.
Why it matters:
An empowered user is more likely to trust and remain loyal to your service. It also ensures procedural fairness and mitigates the risk of enforcement actions.
“To correct or delete your data, visit your Profile Settings or write to privacy@company.com. We’ll respond within 7 days.”
Advanced Tip: Develop a "Rights Management Dashboard" within user accounts for transparency and convenience.
6. Notices Must Acknowledge Special Scenarios: Children and Consent Managers
Children’s data and the role of “consent managers” (as defined by the DPDPA) require special treatment in privacy notices.
What this means:
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For children (under 18, unless the rules specify otherwise), obtain verifiable parental consent.
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Clearly disclose when a consent manager is involved and explain their role.
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Avoid behavioural profiling or targeted advertising for children.
Why it matters:
The penalties for unlawful processing of children’s data can be severe. Furthermore, transparency around consent managers helps build accountability and user confidence.
Example: “Because you are registering a child, we require a parent or guardian’s approval. Please upload a verification document.”
Risks of Non-Compliance
Organizations that fail to align privacy notices with DPDPA requirements face:
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Hefty fines (up to ₹250 crore),
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Reputational damage in a privacy-conscious market,
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Operational disruptions due to user complaints and audits.
Beyond penalties, unclear notices weaken the validity of consent, making organizations more vulnerable to litigation and regulatory intervention.
Best Practices for DPDPA-Compliant Privacy Notices
Here are practical steps to align your notices with the new regime:
1. Layered Notice Design
Offer a tiered experience:
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First Layer: Summary of the most critical information (e.g., purpose, rights, contact).
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Second Layer: Detailed processing logic and data types.
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Third Layer: Full privacy policy with legal terminology for reference.
2. User-Centric Layout and Design
Design for digital-native users:
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Use expandable sections, collapsible menus, and icons.
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Ensure compatibility with screen readers and mobile responsiveness.
- Avoid information overload by chunking content.
3. Integration with Consent Workflows
Sync privacy notices with your consent mechanisms:
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Use checkbox-based or slider-style opt-ins.
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Track user interaction with notices and store logs securely.
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Allow easy revocation or modification of consent.
4. Periodic Reviews and Version Control
Privacy notices are living documents:
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Review them during every product update or feature launch.
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Maintain an archive of previous versions for accountability.
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Notify users of material changes via email or in-app messages.
Sector-Wise Implications
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Healthcare: Must provide granular purpose disclosures, especially when sharing with labs, insurers, or regulators. The data being collected is often classified as sensitive personal data—including patient health records, biometric identifiers, lab reports, and prescription history. Under the DPDPA, collecting this data demands explicit and informed consent and clear disclosures about why the data is needed and who it will be shared with.
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E-commerce: Contextual notices at checkout, account creation, and product review stages are essential. E-commerce platforms collect vast amounts of personal data through user profiles, shopping behaviour, payment details, and customer feedback. Under the DPDPA, every instance of data collection must be accompanied by a clear, timely, and purpose-specific notice—not buried in a general privacy policy.
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Fintech: Clearly differentiate between mandatory (e.g., KYC) and optional data collection. Fintech platforms deal with high-risk data such as Aadhaar, PAN, bank details, and credit history. While some data is legally required under RBI or SEBI guidelines (e.g., for KYC or AML compliance), other data may be collected for business intelligence, cross-selling, or analytics.
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EdTech: Must align notices with child protection guidelines and require parental consent. Many EdTech platforms serve minors—students under the age of 18. The DPDPA treats children’s data with elevated protection, requiring verifiable parental consent before collection or processing and prohibiting behavioural profiling or targeted advertising for minors.
Concluding Reflections
The DPDPA demands a fundamental rethinking of how organizations engage with their users on privacy matters. Privacy notices are not just a compliance document—they are the first expression of your organization’s commitment to ethics, transparency, and respect.
In a world increasingly driven by data, your privacy notice is your first handshake with the user. Make it count.
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