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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics and Law

Under the Information Technology Act, 2000, a body corporate holding sensitive personal data in a computer resource it owns is negligent in maintaining reasonable security practices, and a data breach in its big data platform causes wrongful loss to a customer. What is the consequence under Section 43A?

The body corporate is liable to pay damages by way of compensation to the person affected. Section 43A requires only negligence in maintaining reasonable security practices causing wrongful loss or gain; intention is not needed, and the section does not itself prescribe imprisonment.

  1. AThe body corporate is liable to pay compensation by way of damages to the affected personCorrect
  2. BThe body corporate is automatically liable to imprisonment of three years
  3. COnly the Controller may seek the data, and no compensation is payable
  4. DThe liability arises only if the breach was intentional

Explanation

Section 43A makes a body corporate that is negligent in implementing reasonable security practices, thereby causing wrongful loss or gain, liable to pay damages by way of compensation to the affected person. Negligence suffices; intention is not required, and the section provides compensation, not imprisonment.

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