Privacy Policy & The DPDPA: A Complete Legal Guide
Definition: What is a Privacy Policy?
A Privacy Policy (often referred to as a "Notice" under Indian Law) is a legally binding document that explicitly outlines how a Data Fiduciary (organization) collects, processes, stores, and protects the personal data of a Data Principal (user). It acts as the foundation for obtaining free, specific, informed, unconditional, and unambiguous consent.
Why is a Privacy Policy Mandatory?
With the operationalization of the Digital Personal Data Protection Act (DPDPA), 2023 via the Rules notified on November 13, 2025, maintaining a comprehensive Privacy Policy is a strict statutory obligation.
- Statutory Mandate: Section 5 of the DPDPA requires a notice to be presented preceding or at the time of seeking consent.
- Transparency Principle: Data Principals must be informed of the purpose of processing and the specific data items collected.
- Consent Architecture: The policy serves as the legal instrument through which "Informed Consent" is derived. Without a valid policy, any consent obtained is void ab initio.
Key Regulatory Frameworks
DPDPA, 2023 & Rules 2025 (India)
Effective: November 13, 2025
Replaces Section 43A of the IT Act. It introduces the concepts of Data Fiduciary, Data Principal, and Consent Manager. It mandates significant penalties for non-compliance (up to ₹250 Crore) and requires consent to be verifiable and withdrawable.
GDPR (European Union)
The General Data Protection Regulation applies to Indian entities if they process data of EU residents. It emphasizes the "Right to be Forgotten" and "Data Portability."
CCPA/CPRA (California, USA)
Focuses on the "Right to Opt-Out" of the sale of personal data. Essential for Indian tech companies with a user base in California.
Essential Components under DPDPA 2023
To ensure a Privacy Policy (Notice) is compliant with the DPDPA and Rules 2025, it must contain specific disclosures:
1. Purpose & Data Categories
2. Withdrawal of Consent
3. Grievance Redressal
4. Rights of Data Principal
- Right to Access and Information
- Right to Correction and Erasure
- Right to Grievance Redressal
- Right to Nominate (in case of death or incapacity)
Understanding New Terminology (DPDPA vs GDPR)
| Role/Concept | Indian Law (DPDPA) | Global (GDPR) |
|---|---|---|
| Data Owner | Data Principal | Data Subject |
| Organization | Data Fiduciary | Data Controller |
| Intermediary | Consent Manager | N/A |
Conclusion
The notification of the DPDP Rules on November 13, 2025, marks a paradigm shift in Indian digital governance. Organizations must transition from generic "Privacy Policies" to specific, verifiable "Data Protection Notices."
Compliance is no longer about tick-box exercises but requires demonstrable accountability. Data Fiduciaries must ensure their policies are accessible, available in required languages (where applicable), and strictly aligned with the principles of the DPDPA, 2023.
Disclaimer: This guide is for educational purposes. For specific compliance audits or policy drafting under the DPDPA 2023, consult a specialized legal professional.
