CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Database Management
A fintech company mines its big-data store of customer records to profile individual behaviour and sells the profiles to advertisers. The records include personal data collected earlier for loan processing only. Which view is correct under Indian data protection principles, including the Digital Personal Data Protection Act, 2023?
Selling profiles is not allowed. Under the Digital Personal Data Protection Act, 2023, personal data may be processed only for the lawful purpose for which consent was given or under a recognised legitimate use. Holding the data in a warehouse does not authorise new commercial uses.
- AAllowed, since the data is already held in the data warehouse
- BAllowed, if the data is aggregated by the IT department
- CNot allowed, as data is processed only for the lawful purpose for which consent was given, unless another lawful ground appliesCorrect
- DAllowed, because mining is a technical process outside the law
Explanation
The DPDP Act, 2023 ties processing to the purpose for which the Data Principal gave consent, or to a specified legitimate use. Storage in a warehouse or internal handling by the IT team does not create a new lawful basis. Being technical does not take mining outside the law.
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