Unveiling Insights: Decoding the ASCI White Paper on Data Privacy and Advertising in Digital Bharat

Online advertising underpins India's digital economy by enabling free access to diverse content and global connections for consumers. It sustains online publishers, empowers creators, boosts MSMEs' market reach, and fuels startup growth. Initiatives like Startup India support this ecosystem. Despite resource constraints, online ads offer cost-effective audience reach, fostering fair competition and diversifying the business landscape. Integral to India's digital realm, online advertising drives revenue generation, economic growth, job creation, and innovation.

The white-paper by ASCI underscores that with a dynamic regulatory environment, and concerns over data privacy among consumers, it is essential to understand the intricacies of the relevant laws and also build resilient strategies which foster trust and transparency.

Impact of DPDP Act on the Advertising Industry

While the DPDP Act received Presidential Assent in August 2023, its enforcement is anticipated soon. It mandates consent for data processing, limits data use, promotes accuracy, restricts storage duration, and enforces security measures. These principles may challenge conventional data-driven advertising practices reliant on extensive profiling and micro-targeting.

The Act prohibits targeted advertising towards children, imposes strict consent requirements, and mandate's purpose limitation in data collection. It grants individuals rights over their data and places certain restrictions on cross-border data transfers. Advertisers must ensure compliance with third parties, thus affecting the advertising and marketing ecosystem.

The White-Paper sheds light on the implications of the Act for the advertising industry vis-à-vis the consumers, and highlights the following challenges which might arise as the advertisers bring in compliance measures-

●????? Consent Fatigue: Consumers experiencing frustration from excessive requests for data sharing, leading to frustration despite initially consenting.

●????? Lack of Understanding: Consumers may not grasp the full extent of data collected about them, leading to unwitting approval.

●????? Implicit Coerciveness: Pressure to agree to data sharing due to an imbalance in information and power.

●????? Inundation of Requests: Feeling overwhelmed by the volume of data-sharing requests across various platforms, resulting in a loss of control over personal information.

The Need for Experts

While the white-paper talks about certain strategies, for adapting to the new landscape, such as conducting a data audit, implementing training programs for staff and third parties, and updating privacy policies to comply with the DPDPA, to align advertising practices with regulatory requirements, it argues that the role of experts cannot be understated. The advertising industry, would require the assistance of professionals in order to-

●????? Identifying personal data: Determine types of data collected and stored, like employee or vendor data.

●????? Mapping data flows: Chart how data moves within and outside the organization with robust data mapping practises.

●????? Assessing processing purpose: Verify that data collected aligns with processing goals.

●????? Assessing activities: Evaluate collection, storage, usage, sharing, and disposal practices.

●????? Reviewing policies: Assess internal and third-party data handling and consent notices and processes.

●????? Reviewing agreements: Scrutinize agreements with consumers, vendors and third-parties for data privacy provisions.

●????? Reviewing breach response plan: Evaluate the organization's data breach response strategy.

Laying a Strong Foundation with Privacy by Design

The most intriguing part of this white-paper is perhaps its focus on Privacy-by-Design (PbD). It talks about how PbD proactively embeds privacy safeguards into digital products and services. It prioritizes privacy from the outset, anticipating and addressing potential risks pre-emptively.

Modern data protection laws, like the DPDPA, are adopting PbD principles, requiring compliance with privacy regulations from the inception of data collection and processing.

The following can be characterised as the key principles of PbD-

●?????? Proactive approach: Anticipate and mitigate privacy risks beforehand.

●?????? Privacy as default: Default settings prioritize user data protection.

●?????? Embedded design: Privacy is integral throughout the design process.

●?????? Full functionality: Balance privacy and functionality for positive outcomes.

●?????? End-to-end security: Ensure data security across its lifecycle.

●?????? Visibility and transparency: Users understand data usage and have access to privacy settings.

The Role of New Technologies

Privacy-Enhancing Technologies (PETs) and Privacy-Preserving Technologies (PPTs) advance informational privacy by safeguarding individuals' data while maintaining its utility.

For the white paper, Privacy-Enhancing Technologies (PETs) were categorized into:

Types of PETs

The white-paper highlights that no single PET is a panacea; each has strengths and weaknesses, often combined for better effectiveness. PETs can transform the advertising ecosystem and the internet, enabling personalization while safeguarding user data. This fosters trust, regulatory compliance, and sustainable commercial growth.

Conclusion

India’s Digital Revolution requires balancing personalization and data privacy, fostering trust and collaboration among stakeholders to ensure responsible governance and meaningful consent.

While India’s internet economy is poised to breach the $1 trillion mark in the next decade, there is a need to strike a fine balance between personalisation and privacy. It is perhaps crucial that all stakeholders, join hands together to realise this goal.

Needless to say, but new technologies, combined with expertise, can help the industry grow by leaps and bounds, while remaining compliant, fostering trust and ensuring transparency.

Link to the white-paper: https://www.ascionline.in/wp-content/uploads/2024/03/Report-Privacy-Progress_-Pillars-of-Digital-Bharat.pdf

Shivang Mishra

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