{"id":85143,"date":"2025-11-24T00:00:00","date_gmt":"2025-11-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/mena-india\/enterprise-explains-new-data-privacy-law-will-increase-compliance-and-operational-costs-for-businesses\/"},"modified":"2025-11-24T00:00:00","modified_gmt":"2025-11-24T00:00:00","slug":"enterprise-explains-new-data-privacy-law-will-increase-compliance-and-operational-costs-for-businesses","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/mena-india\/2025\/11\/24\/enterprise-explains-new-data-privacy-law-will-increase-compliance-and-operational-costs-for-businesses\/","title":{"rendered":"Enterprise Explains: New data privacy law will increase compliance and operational costs for businesses"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Decoding the new data laws: <\/strong>India\u2019s recently implemented Digital Personal Data Protection (DPDP) Act has introduced stricter data-governance rules that will increase compliance and operation costs as businesses introduce structural changes to their systems, Meghna Bal, director at the Eysa Centre and a tech-policy expert, told EnterpriseAM.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">(<strong>** Tap or click the headline above to read this story with all of the links<\/strong> to our background and outside sources.)<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The framework tightens consent requirements<\/strong>, limits how long firms can retain customer information, and restricts the conditions under which personal data can be shared with third parties. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s changing?<\/strong> Businesses must clearly state data-use purposes upfront and delete customer information after three years of inactivity unless the data is needed to meet legal requirements. Users must be notified 48 hours before their data is erased. The rules also require firms to maintain detailed records and implement processes to support user requests for data access, correction, and erasure.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Compliance costs will squeeze small businesses:<\/strong> \u201cThe costs are going to be massive, and I don\u2019t think companies realize just how much this legislation will cost,\u201d Bal said, noting that the act was \u201cframed with big companies in mind, with little concern for the ability of small firms to comply.\u201d She added that small businesses may need temporary exemptions under <a target=\"_blank\" href=\"https:\/\/www.meity.gov.in\/static\/uploads\/2024\/06\/2bf1f0e9f04e6fb4f8fef35e82c42aa5.pdf\" style=\"\" rel=\"noopener\">Section 17(3)<\/a> \u201cto remain viable\u201d during the transition.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And multinationals will feel pressure, too: <\/strong>Bal said multinational companies may face bottlenecks as compliance decisions \u201caren\u2019t made locally\u201d and require global coordination. She noted that the legislation\u2019s failure to recognize contractual necessity creates challenges for sectors dependent on third-party data flows. \u201cFor telcos, even terminating a call on another network becomes unclear because the other operator won\u2019t have consent from non-customers \u2014 it upends interconnection,\u201d she said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Compliance will require broad structural changes to how companies design user <\/strong><strong>interfaces and the rebuilding of backend systems.<\/strong> \u201cA data protection law impacts everything from internal data operations to external interfaces,\u201d Bal told us, adding that companies need time to redesign systems \u201cin ways that don\u2019t increase user friction.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It\u2019s going to have a big impact on how companies advertise: <\/strong>With tighter limits on data sharing, companies will need to rely more on their own first-party datasets for behavioural targeting. Reduced consent-driven datasets may prompt companies to rethink marketing workflows and data-handling systems. \u201cShifting to first-party systems is not easy \u2014 smaller businesses compete today because they can leverage the targeted advertising capability of larger platforms,\u201d Bal said. She added that using public datasets will also become harder since companies must verify whether the individual made the data public \u2014 \u201can impossible task under the current wording of the act.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The timeline: <\/strong>The DPDP Act gives companies up to 18 months to get their houses in order on consent management, breach reporting, and deletion protocols. \u201cThe 18-month window is already compressed compared to the EU, Japan, and Brazil, all of which provided 24 months,\u201d Bal said. The new law is more burdensome than in any of these jurisdictions because it requires consent as a basis for almost all data processing.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Firms will need to ensure they can trace data flows end-to-end<\/strong> to avoid incomplete or inaccurate deletions that could attract penalties.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>IN CONTEXT: <\/strong>India\u2019s new DPDP Act \u2014 the country\u2019s first comprehensive digital privacy law \u2014 came into effect on 14 November. It requires explicit consent for collecting or processing personal data and grants users the right to access, correct, and erase their information. Companies must disclose why data is being collected, ensure secure processing, and report breaches within 72 hours. The law applies to all digital personal data in India, including overseas firms offering goods or services to users in the country.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Companies face tighter consent flows, shorter retention windows, and tougher compliance timelines under India\u2019s new privacy regime<\/p>\n","protected":false},"author":1,"featured_media":85144,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2603],"tags":[2569,2402,2467,2602],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-85143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-policy-watch","tag-digital-personal-data-protection-act","tag-enterpriseam-india","tag-policy","tag-policy-watch","wpautop","entry"],"acf":{"mongo_id":"195a8240-07da-48a4-a5bf-1efaa8af619e","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/11\/1624.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Enterprise 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