Startups sitting on big data they have collected over the years are excited about monetizing this data. Problem is, is that legal? (Not exactly).
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A startup client we work with, one with a million and half users, is sitting on big data it has collected over the years. They are excited about emerging possibilities to finally monetize such data in ways that it never anticipated before. But can they?
The implementation of these Regulations is so lax, that most data collection entities are unaware of these provisions. However going forward, one should only expect more comprehensive regulations and more stringent implementation in the future, what with growing awareness and consequent claims of breach of privacy by users. Today a nine judge bench of the Supreme Court (a rare occurrence signifying utmost constitutional importance) is sitting in consideration on whether privacy is a fundamental right, in a milieu where a stricter regulatory regime for data collection and privacy is emerging globally. Take for example, the passage of the General Data Protection Regulation in the EU which comes into effect in 2018 and imposes some of the highest sanctions for non-compliance including revenue based fines which could go up to 4 per cent of annual worldwide turnover of the company in default of privacy and data protection related requirements set out thereunder.
These trends are likely to be mirrored in India. Accordingly, if one has to prepare for future monetization of data, it is essential to collect data and take consent for use today in a manner that will muster approval under future regulation and privacy concerns of users.
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