CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics
A company plans to run analytics on customer personal data to predict buying behaviour. Under India's Digital Personal Data Protection Act, 2023, which approach is consistent with the Act?
The consistent approach is to process personal data only for a lawful purpose, on valid consent or another permitted ground, and within the purpose notified to the individual. Being an analytics exercise or already holding the data does not exempt the company from these obligations, and unrestricted third-party sharing is not permitted.
- AProcess the data only for a lawful purpose, with valid consent or another permitted ground, and limit use to the stated purposeCorrect
- BProcess the data freely because analytics produces only aggregated insights
- CProcess the data without notice because the company already holds it
- DShare the data with any third party once analysis begins
Explanation
The Act requires personal data to be processed for a lawful purpose based on consent or a permitted legitimate use, with notice to the individual. Analytics intent does not exempt the company, and holding data does not remove notice and purpose obligations. Unrestricted sharing is not allowed.
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