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Submitting comments on the Digital Personal Data Protection Bill, 2022, traders’ body, the Confederation of All India Traders (CAIT) has said that it is important to put restrictions on cross border data flows to ensure that user data is not misused.
In a letter to Union Communications Minister Ashwini Vaishnav, the CAIT said that data protection rules are critical for ensuring that the retail and ecommerce sectors are not negatively impacted by the data collection and processing activities of big tech companies. “It has been observed that these large companies misuse the personal data of Indian consumers to gain a competitive edge over local traders and retailers,” it said.
“Limitations on cross-border data flows are essential for developing nations like India to ensure that citizen data is used properly, and also to prevent economic harm resulting from the unchecked processing of personal data by global big tech companies. The global tech giants collect and process global user data, and apply predatory algorithms to benefit their bottom line, at the expense of local sectors and economies,” said the letter written by Praveen Khandelwal, national secretary general, CAIT.
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The proposed legislation should also clarify that in the event of conflicts with sectoral rules and regulations, such as in the case of the RBI data localisation mandate, the proposed personal data protection legislation is to be read in addition to the sectoral rules, and is not to be construed in derogation of existing rules and frameworks established by sectoral regulators, said the letter.
CAIT in its letter said that mandating large global tech companies to store and process the data of Indian citizens within the territorial boundaries of India will improve compliance with the provisions of the intended rules, enhance the ability of local law enforcement and pursue and deliver effective recourse in the event of misuse or breach of personal data. It will also prevent the economic harm associated with big techs unchecked and unrestricted processing and consequential misuse of the personal data of Indian citizens.
