CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Internet and Other Technologies
A Hyderabad company stores customers' personal data on a cloud provider's servers located abroad. A data breach occurs at the provider. Which statement best reflects the legal position in India?
The company stays accountable. The entity that decides why and how personal data is processed remains responsible for protecting it, and engaging a cloud provider as processor, even one abroad, does not remove that accountability.
- AThe company is relieved of all liability because the provider is a separate legal entity
- BThe company, as the party that decided to collect and use the data, is still accountable for protecting it and cannot escape responsibility merely by outsourcing storageCorrect
- COnly the foreign provider can be proceeded against, since the servers are outside India
- DLiability arises only if the company had stored the data in a private cloud
Explanation
Under India's data protection and IT law approach, the entity that determines the purpose and means of processing remains accountable, even when it engages a processor such as a cloud provider. Outsourcing storage does not shift that accountability, and the cloud model chosen does not decide liability.
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