How brands can build trust in the age of data privacy concerns

A major e-commerce platform in India recently faced public outcry for ambiguous consent forms, resulting in a drop in user trust and app deletions. In a world where data is currency, trust is the new competitive advantage. With frequent data breaches and online scams in India, data privacy is an increasing concern for both consumers and businesses. As government departments and financial institutions are educating the consumers and with introduction of Digital Personal Data Protection Act (DPDPA), consumers are more aware than ever of how their  personal information is being collected, used, and shared. As a result, businesses must adopt responsible data and privacy handling practices to build trust and credibility. 

The impact of data privacy laws on marketing 

The Digital Personal Data Protection Act (DPDPA), passed in 2023, has significantly influenced how Indian brands collect, store, and process consumer data. This law mandates explicit consent for data collection, restricts data retention periods, and imposes strict penalties for non-compliance. Brands must now ensure that they collect only essential data and provide users with clear options to manage their preferences. Failure to comply can lead to substantial fines and reputational damage, making privacy-first marketing strategies a necessity rather than an option.  

One of the most effective ways brands can navigate these regulatory changes is by implementing clear, transparent, and consumer-friendly privacy policies. A well-defined privacy policy not only helps businesses comply with legal requirements but also reassures consumers that their data and privacy are handled responsibly. A strong set of guidelines serve as the foundation for trust, ensuring that users understand how their personal information is collected, used, and protected. Prioritising privacy protection is key to long-term success in a data-driven economy. 

What to include in your privacy policy 

A well-structured privacy policy is crucial for gaining consumer trust and complying with Indian data protection laws. Your data handling guidelines should clearly outline the following: 

Types of data collected: Specify the personal and non-personal data your brand collects, such as names, contact details, browsing behaviour, and payment information. 

Purpose of data collection: Explain why the data is being collected, whether for marketing, customer support, order fulfilment, or personalisation. 

Consent mechanisms: Describe how users provide consent and how they can modify or withdraw it at any time. 

Data storage and security measures: Detail how consumer data is stored, encrypted, and protected from breaches to enhance privacy protection. 

Third party sharing: If data is shared with third parties, such as advertising partners or analytics providers, explicitly mention it and explain how these third parties handle the data and privacy. 

User rights and accessibility: Outline how consumers can access, modify, or delete their data, in accordance with DPDPA guidelines. 

Data retention policy: Specify how long consumer data will be retained and when it will be deleted. 

Grievance redressal mechanism: Provide a contact point for consumers to raise concerns or data-related issues. 

In the digital economy, the brands that will thrive are the ones that treat consumer data not just as a resource, but as a responsibility. By ensuring that your privacy policy is comprehensive, easy to understand, and regularly updated, you can strengthen consumer confidence and demonstrate your commitment to privacy protection.