DATA PROTECTION & ITS IMPACT ON TECHNOLOGY SERVICE PROVIDERS

Delhi based Monish Panda & Associates is predominantly a Tax Regulation firm handling complex Commercial, Regulatory, Criminal, Tax and Civil Disputes and Disputes Advisory.

- Monish Panda and Amit Kumar Bhattacharyya

Technology plays a central role in our lives in the 21st century. Today, people constantly feel the need to catalogue and share each and every moment of their lives on the internet. Instagram, Facebook and Snapchat are more than just applications; they are lifelines. In fact, gravity of the situation is such that the Waldorf School in Silicon Valley, the educational destination for the kids of tech-giants, has decided to limit technological exposure of its students to a certain point. Like every commercial enterprise, technology service providers (TSPs) seek to build a unique selling point (USP) of their own. The model adopted by them is to calibrate their accuracy based on the consumer’s personal data. And therein lays the concern.

Tailor made services are often the key to building a loyal customer base. Therefore, when customers gladly provide consent for their personal information to TSPs, the duty to protect it automatically falls on the State. The Information Technology Act, 2000 (ITA) governs all modes of electronic communication. Section 43A clearly lays down that a body corporate which fails to protect any personal data shall be liable to pay damages. Section 72 mandates that anyone who breaches the confidentiality of any person by accessing his personal information without their consent shall be liable for imprisonment for up to two years or pay a fine up to Rs. 1 lakh or both.