Nearing Public Consultation, DPDP May Offer Consent Framework For Firms Instead Of Exact Rules

Nearing Public Consultation, DPDP May Offer Consent Framework For Firms Instead Of Exact Rules

SUMMARY

As per ET, the rules will likely mandate using a government-issued ID for age and consent verification, while allowing companies to develop their own systems in the future

The rules may exempt schools, colleges, and universities from obtaining parental consent for processing children’s data, but this exemption is unlikely to apply to ed-tech companies, according to a source

The DPDP Act classifies users under 18 as children and mandates social media or internet intermediaries, known as data fiduciaries, to obtain explicit parental consent before processing any data from children

With the rules to implement the Digital Personal Data Protection (DPDP) Act set to be released for public consultation by the end of this month, a report suggests that these may prescribe an umbrella framework for companies on consent management instead of issuing exact rules. 

As per ET, the rules will likely mandate using a government-issued ID for age and consent verification, while allowing companies to develop their own systems in the future.

“There will be broad prescriptions on the norms that institutions must follow while following parental consent guidelines, along with the different types of identity cards that can be used,” a source told ET.

This approach aims to prevent business disruptions for smaller entities while ensuring compliance with the Act, according to the source.

“The rules will need to be followed even by smaller organisations like schools and in some cases universities which deal with a lot of children’s data. These organisations may not always be willing to spend a lot to build a large infrastructure for consent management,” the person added.

The rules may exempt schools, colleges, and universities from obtaining parental consent for processing children’s data, but this exemption is unlikely to apply to ed-tech companies, according to a source.

The DPDP Act classifies users under 18 as children and mandates social media or internet intermediaries, known as data fiduciaries, to obtain explicit parental consent before processing any data from children.

In July, it was reported that the central government was looking to finalise the draft rules for the DPDP Act 2023 and planned to release them for public consultation in the second or third week of August.

Earlier, it was reported that social media platforms are exploring methods like QR codes, virtual Aadhaar IDs, or age verification at the app store level to comply with the DPDP Act of 2023. However, this provision encountered pushback from industry executives who were concerned about the privacy implications associated with these tools for establishing children’s ages and verifying parental connections.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Nearing Public Consultation, DPDP May Offer Consent Framework For Firms Instead Of Exact Rules-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Nearing Public Consultation, DPDP May Offer Consent Framework For Firms Instead Of Exact Rules-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Nearing Public Consultation, DPDP May Offer Consent Framework For Firms Instead Of Exact Rules-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Nearing Public Consultation, DPDP May Offer Consent Framework For Firms Instead Of Exact Rules-Inc42 Media
Nearing Public Consultation, DPDP May Offer Consent Framework For Firms Instead Of Exact Rules-Inc42 Media
You’re in Good company