DPDP Rules: Govt may give extension on consultation period
Industry stakeholders raise concerns over children’s data restrictions and virtual consent mechanisms, as Minister Vaishnaw hints at a 15-day extension for deliberations.
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On January 14, Ashwini Vaishnaw, India’s Minister for Electronics and Information Technology, led a key industry consultation in New Delhi on the government’s draft Digital Personal Data Protection (DPDP) Rules. The meeting, the first in a series of planned consultations, marked a significant step in the government's effort to refine the proposed regulations before they are finalized.
Vaishnaw emphasized the government’s commitment to engaging with a broad spectrum of stakeholders, stating that they will continue to conduct a series of exhaustive consultations to ensure that all viewpoints are heard.
Among the key concerns raised during the meeting were issues related to consent mechanisms and the requirements for data localization. Industry representatives expressed apprehension over how these provisions could impact innovation and the broader digital economy. Vaishnaw, however, assured participants that future discussions would be focused on striking a balance between robust regulation and fostering technological growth.
Approximately 350 stakeholders participated in the first consultation. The suggestions were "excellent,” he shared on social media platform X, adding that further “focused discussions” would follow to address these concerns and refine the draft rules.
Meity recently released draft rules for the Digital Personal Data Protection Act (DPDPA) to solicit public feedback. Stakeholders had expressed concerns about the limited consultation period and are requesting an extension. Feedback is currently being accepted until February 18.
According to sources familiar with the discussions, Vaishnaw suggested during the meeting that the ongoing consultations could extend beyond the initially planned timeline, potentially by up to 15 days. This extension would allow for more in-depth deliberations and ensure that all stakeholder concerns are thoroughly addressed before the rules are finalized.
The consultation in New Delhi was attended by a diverse group of stakeholders, including representatives from social media platforms, e-commerce firms, banks, payment companies, insurance providers, telecom operators, and large conglomerates. The meeting, which was chaired by Vaishnaw and attended by IT Secretary S. Krishnan, focused on the DPDP Rules, a crucial step toward implementing the DPDP Act that was officially notified in August 2023.
During the consultation, several key issues were raised regarding the draft DPDP Rules. Among the most pressing concerns was the use of virtual tokens to obtain Virtual Private Consent (VPC) for users under the age of 18. Participants sought clarification on how these tokens would function in practice, particularly in terms of safeguarding the interests of minors.
Concerns about the impact on children’s digital experiences were also voiced. Some participants worried that stringent restrictions on processing children’s data could result in the delivery of irrelevant content to young users. Others expressed apprehension that these regulations could lead to higher customer acquisition costs for MSMEs and content creators targeting children, as the limitations on targeted advertising would likely make marketing less efficient.
