Need for a data protection law

Why in news?

Former chairman of the UIDAI has called for a new data protection and empowerment law.

What is the need for a data protection law?

• The present time period is said to be the ‘age of data’ as private companies store huge volumes of information, a lot of it outside India’s borders.
• Data-colonising companies like Facebook, WhatsApp use the collected information in numerous ways about which individuals have limited control.
• Digital India roll-out, push on digital payments and rising e-commerce penetration mandates a stronger data protection regime to foster trust in the data ecosystem.
• Cybercrime and data breaches are also on the rise.
• Cross-border data flows are increasingly becoming a key determinant for claiming a country’s share in the global digital trade.
• A stronger data protection regime would act as an enabler for business growth and employment opportunities especially for the Indian IT industry.
• Collection of data by governments and agencies could be used by criminals for illegal trade, trafficking and money laundering apart from recruitment to various terror outfits.
• Lack of a stringent legal framework for data protection has led to privacy violations going unpunished, limitations on consumers’ rights to claim compensation and constrains in government’s ability to impose fine and penalties.

What should be done?

• The present Information Technology (IT) Act 2008 is not a substitute for a data protection regime.
• Most government departments and agencies do not come under the regulation of the act.
• India should develop a data-protection regime that suits the Indian context and safeguards against privacy violations, but does not stifle technology innovation.

• India should address the issue of privacy, data colonisation and competition.
• It is important to look at the issue from both privacy as well as national security perspectives.

Source: The Hindu, Livemint