Big tech companies like Google, Meta, Amazon, and other ecommerce platforms may face penalties. According to FE, citing a senior official, the Consumer Protection Act of 2019 allows the consumer affairs department to take action and issue directions to such businesses.
When a specific search related feed appears on Facebook matching what the consumer searched on Google, this is an example of customer data sharing. According to the official, this indicates that big tech companies are sharing user data.
“Because the data belongs to a consumer, if the consumer believes that their data is being shared amongst firms without their express consent, they are free to approach us under the Consumer Protection Act,” an official was quoted in the report as saying.
If data sharing occurs without the user’s consent, users can contact the consumer affairs department. “The Consumer Protection Act and the Central Consumer Protection Authority have the authority to act on such complaints,” the official continued.
Under the Consumer Protection Act, the department of consumer affairs has the authority to penalise such companies for misleading advertisements and unfair trade practises. Consumers have the right to seek redress in the event of unfair or restrictive trade practises or unscrupulous exploitation.
While the approach to using user data is being debated around the world, India’s Digital Personal Data Protection Bill (DPDPB) has yet to be finalised.
In November 2022, the DPDP Bill was published, proposing a number of reforms to govern the Indian digital ecosystem. It proposed the concept of data fiduciary and mandated new changes, such as a user’s right to give, manage, and withdraw consent for information sharing.
If the provisions of the Bill are not followed, a penalty of up to INR 500 Cr may be imposed.
However, there have been a number of controversies surrounding the Bill. Following IT Minister Ashwini Vaishnaw’s statement last week that the Parliamentary panel gave the draught Bill a “big thumbs up,” Member of Parliament (MP) Karti Chidambaram refuted the Centre’s claims. He went on to say that the panel had raised a number of concerns during the preliminary discussion of the Bill in December of last year.
