Aligning and Diverging: A Deep Dive into DPDP, GDPR, and CCPA (Part 2)

Welcome back to our deep dive into the world of data privacy! After setting the stage with an introduction to DPDP, GDPR, and CCPA in Episode 1, let’s move to the next step—understanding how these laws align, diverge, and impact organizations in practice. To make this journey relatable, we’ll also explore a real-world scenario from the BFSI sector.

At first glance, DPDP, GDPR, and CCPA share a common purpose: empowering individuals to control their personal data. But as they say, the devil is in the details! So, let’s break down the similarities and differences between these privacy frameworks.

The Common Ground: Shared Principles Across DPDP, GDPR, and CCPA

All three regulations are built on fundamental pillars that emphasize transparency, user rights, and security:

• Data Consent: Whether you’re in Europe, India, or California, obtaining consent is crucial. GDPR requires explicit and unambiguous consent for data collection and processing. DPDP follows a similar path, demanding clear and affirmative consent. CCPA, while more flexible, ensures users are informed when and why their data is collected, offering them the choice to opt out of data selling.
• Rights to Access and Delete Data: Users under GDPR, DPDP, or CCPA can request access to their data and even ask for it to be deleted. GDPR takes it a step further with the Right to be Forgotten, which ensures data is erased under specific conditions. CCPA limits deletion rights to data collected directly, while DPDP aligns closely with GDPR in empowering individuals.
• Security Requirements: Protecting personal data is non-negotiable. GDPR enforces robust technical safeguards and strict breach notification timelines (72 hours). DPDP similarly prioritizes data security and mandates breach notifications, though specifics are still evolving. CCPA, while less prescriptive, holds businesses accountable for lapses, enabling lawsuits under certain conditions.

While these principles form the backbone of each law, their implementation reveals the unique priorities of each region.

The Divergences: What Makes Each Framework Unique

Here’s where DPDP, GDPR, and CCPA chart their distinct paths. To illustrate these differences, let’s step into the shoes of a global bank operating in the EU, California, and India.

?1. Data Consent: The First Step in Customer Trust

Imagine the bank processes credit card applications for customers in all three regions:

• GDPR (EU): Consent must be actively given—no pre-ticked boxes allowed! The bank needs to explain how customer data will be used, such as for credit checks or fraud detection.
• CCPA (California): Instead of explicit consent, CCPA focuses on transparency. The bank notifies customers at the time of data collection and offers an easy-to-find “Do Not Sell My Personal Information” option if data is shared with third parties.
• DPDP (India): Much like GDPR, DPDP requires clear and affirmative consent. The bank must also provide an easy withdrawal option—although this may impact ongoing services like loan processing.

Key Difference: GDPR and DPDP emphasize active consent, while CCPA prioritizes transparency and opt-out rights.

2. Data Rights: Control over Personal Information

Now, let’s say a customer in each region requests access to their data and asks for it to be deleted:

• GDPR (EU): Customers enjoy the Right to Access and the Right to be Forgotten. The bank must fulfill these requests within one month, barring any legal exceptions.
• CCPA (California): Customers can access the categories of data collected and request deletion—but only for data collected directly from them, not from other sources.
• DPDP (India): Indian customers have a similar Right to Access and Right to Erasure, but the timelines and specifics for implementation are still evolving.

Key Difference: GDPR offers the most comprehensive rights, including timelines and broad applicability. CCPA’s rights are narrower, while DPDP falls somewhere in between.

?3. Security: Keeping Data Safe

A hypothetical cyberattack compromises sensitive customer data in all three regions. What happens next?

• GDPR (EU): The bank must notify the relevant authority within 72 hours and inform customers promptly, outlining steps to mitigate risks.
• CCPA (California): CCPA doesn’t have specific breach notification requirements, but negligence could lead to lawsuits under its private right of action.
• DPDP (India): DPDP mandates breach notification to India’s Data Protection Board. The severity and context of the breach will shape the board’s response and timelines.

Key Difference: GDPR offers clear breach protocols, while DPDP’s framework is still developing. CCPA takes a different route, focusing on legal recourse for affected customers.

4. Regional Priorities: Reflecting Unique Values

• GDPR’s Data Minimization: The bank in the EU can collect only the data strictly necessary for its operations. For example, a mortgage application cannot include irrelevant data like social media handles.
• CCPA’s Opt-Out Rights: In California, the bank must allow customers to opt out of having their data sold to third parties, which is crucial for protecting user privacy in targeted marketing.
• DPDP’s Localization Rules: In India, sensitive data like Aadhaar-linked information must be stored locally, reflecting a national priority for data sovereignty.

Key Difference: GDPR minimizes data collection, CCPA ensures opt-out rights, and DPDP mandates data localization for sensitive information.

Why These Differences Matter

These distinctions stem from the socio-economic and cultural contexts of each regulation:

• GDPR reflects the EU’s rights-first approach.
• CCPA balances privacy with business interests in a market-driven economy.
• DPDP addresses India’s digital growth and localization priorities.

For businesses that are global, the challenge lies in navigating this intricate compliance landscape while maintaining user trust.

Key Takeaways

1. Shared Goals, Diverse Paths: DPDP, GDPR, and CCPA share the overarching aim of protecting personal data, but their unique regional priorities shape how they achieve this goal.
2. Regional Priorities Drive Unique Provisions: The extent of data collection, opting out rights and data localization mandates vary across regions.
3. Global Compliance is a Jigsaw Puzzle: Businesses operating across regions must adapt their processes to meet differing obligations, from managing consent logs to addressing regional breach notification requirements.
4. The Evolving Nature of Privacy Laws: With dynamic digital ecosystems, these regulations will continue to grow and evolve. Staying agile, informed, and ready to adapt is crucial for sustained compliance.
5. Transparency and Strong Governance are Critical: A proactive approach—built on transparency, robust data governance, and adaptability—is essential for navigating overlapping regulatory landscapes effectively.

As businesses navigate this complex environment, they contribute to a global movement towards stronger data privacy and security.

What’s Next?

Now that we’ve compared the key features of DPDP, GDPR, and CCPA—understanding their shared principles and unique provisions—the next step is to explore how these regulations intersect with the world of cybersecurity.?Stay tuned for Part 3 of this series, where we’ll explore the critical role regulatory compliance plays in fortifying modern cyber defense and why it’s more important than ever to integrate privacy into your cybersecurity strategy.?

Regards?

Badri Narayanan Parthasarathy

(DNIF Hypercloud)