Section 7 DPDPA

Certain legitimate uses.


7. A Data Fiduciary may process personal data of a Data Principal for any of following uses, namely:—
(a)for the specified purpose for which the Data Principal has voluntarily provided her personal data to the Data Fiduciary, and in respect of which she has not indicated to the Data Fiduciary that she does not consent to the use of her personal data.

Illustrations.

(I) X, an individual, makes a purchase at Y, a pharmacy. She voluntarily provides Y her personal data and requests Y to acknowledge receipt of the payment made for the purchase by sending a message to her mobile phone. Y may process the personal data of X for the purpose of sending the receipt.
(II) X, an individual, electronically messages Y, a real estate broker, requesting Y to help identify a suitable rented accommodation for her and shares her personal data for this purpose. Y may process her personal data to identify and intimate to her the details of accommodation available on rent. Subsequently, X informs Y that X no longer needs help from Y. Y shall cease to process the personal data of X;
(b) for the State and any of its instrumentalities to provide or issue to the Data Principal such subsidy, benefit, service, certificate, licence or permit as may be prescribed, where––
(i) she has previously consented to the processing of her personal data by the State or any of its instrumentalities for any subsidy, benefit, service, certificate, licence or permit; or
(ii) such personal data is available in digital form in, or in non-digital form and digitised subsequently from, any database, register, book or other document which is maintained by the State or any of its instrumentalities and is notified by the Central Government,
subject to standards followed for processing being in accordance with the policy issued by the Central Government or any law for the time being in force for governance of personal data.

Illustration.

X. a pregnant woman, enrols herself on an app or website to avail of government’s maternity benefits programme, while consenting to provide her personal data for the purpose of availing of such benefits. Government may process the personal data of X processing to determine her eligibility to receive any other prescribed benefit from the government;

(c) for the performance by the State or any of its instrumentalities of any function under any law for the time being in force in India or in the interest of sovereignty and integrity of India or security of the State;
(d) for fulfilling any obligation under any law for the time being in force in India on any person to disclose any information to the State or any of its instrumentalities, subject to such processing being in accordance with the provisions regarding disclosure of such information in any other law for the time being in force;
(e) for compliance with any judgment or decree or order issued under any law for the time being in force in India, or any judgment or order relating to claims of a contractual or civil nature under any law for the time being in force outside India;
(f) for responding to a medical emergency involving a threat to the life or immediate threat to the health of the Data Principal or any other individual;
(g) for taking measures to provide medical treatment or health services to any individual during an epidemic, outbreak of disease, or any other threat to public health;
(h) for taking measures to ensure safety of, or provide assistance or services to, any individual during any disaster, or any breakdown of public order.
Explanation.—For the purposes of this clause, the expression “disaster” shall have the same meaning as assigned to it in clause (d) of section 2 of the Disaster Management Act, 2005; or
(i) for the purposes of employment or those related to safeguarding the employer from loss or liability, such as prevention of corporate espionage, maintenance of confidentiality of trade secrets, intellectual property, classified information or provision of any service or benefit sought by a Data Principal who is an employee.

Applicable DPDP Rule 2025

Rule 7: Notice given by Data Fiduciary to Data Principal

Section 8 DPDPA →
DPDPA
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Legal Interpretation of the

Section 7 of the Digital Personal Data Protection Act, 2023 (DPDPA)

1. Purpose and Scope of Section 7

Purpose: Section 7 facilitates essential data processing activities that may not be feasible with individual consent. It ensures legitimate uses such as public welfare, legal compliance, and emergency responses while balancing privacy rights.

Scope: It applies to specific situations, including compliance with legal obligations, State functions, emergencies, and fraud prevention.

2. Alignment with Constitutional Principles

Right to Privacy: Recognized as a fundamental right under Article 21 in Justice K.S. Puttaswamy v. Union of India (2017). Non-consensual processing must serve a legitimate aim, be necessary, and proportionate.

Public Interest vs. Individual Rights: Indian jurisprudence emphasizes prioritizing public interest while ensuring proportionality.

3. Practical Examples for Legitimate Uses

  • Compliance with State Functions: Aadhaar data for welfare schemes.
  • Legal Obligations: Banks collecting KYC data under the Prevention of Money Laundering Act.
  • Judicial Orders: Transaction details provided for fraud investigation.
  • Medical Emergencies: Accessing patient records for life-saving treatment.
  • Public Health: Contact tracing data during a pandemic.
  • Disaster Management: Using location data for flood rescue efforts.
  • Employment Purposes: Employee performance data for appraisals.
  • Fraud Prevention: Monitoring transaction patterns for suspicious activity.
  • Voluntary Provision: Email addresses provided for e-receipts.

4. Implications for Data Fiduciaries and Data Principals

For Data Fiduciaries:

  • Accountability: Must document the necessity and proportionality of processing.
  • Transparency: Notify Data Principals where feasible.
  • Compliance: Adhere to strict statutory requirements.

For Data Principals:

  • Reduced Consent Rights: Processing in these scenarios may not require explicit consent.
  • Privacy Concerns: Rely on fiduciaries and regulators for protection.

5. Summary of Safeguards to Prevent Misuse

  • Purpose Limitation: Data processed only for specific purposes.
  • Necessity and Proportionality: Strict necessity for processing.
  • Regulatory Oversight: Fiduciaries are subject to audits and penalties.
  • Data Minimization: Process minimal data required.
  • Redress Mechanisms: Complaints can be lodged with the Data Protection Board.

Conclusion

Section 7 of the DPDPA balances non-consensual data processing with privacy rights, ensuring legitimacy, necessity, and proportionality. By implementing robust safeguards, it protects individual trust while facilitating operational efficiency.

© 2024 Advocate (Dr.) Prashant Mali