Overview
E-commerce operates through data. Customer preferences, browsing behaviour, purchase history, payment information, and delivery addresses enable the personalized experiences that drive conversion. The Digital Personal Data Protection Act, 2023 fundamentally reshapes how this data can be collected, used, and shared. The business model implications are significant.
Consumer consent becomes central. Gone are the assumptions that browsing a website implies consent to data collection. DPDPA requires specific, informed consent with clear purposes. Dark patterns designed to manipulate consent are prohibited. These requirements reshape interface design, marketing practices, and partnership agreements.
The e-commerce ecosystem involves multiple data flows—marketplaces to sellers, platforms to advertisers, retailers to logistics providers, payment processors to fraud systems. Each flow requires contractual treatment. Data sharing that seemed routine now requires explicit authorization, clear purpose limitation, and appropriate safeguards.
Key Considerations
Consent Architecture
Designing consent flows that satisfy DPDPA requirements while maintaining conversion rates and customer experience.
Marketplace Data Governance
Contracts between marketplaces and sellers addressing customer data access, use limitations, and platform responsibilities.
Advertising Data Practices
Agreements governing targeted advertising, customer profiling, and third-party data sharing with ad networks.
Payment Data Security
PCI-DSS compliance integrated with DPDPA requirements for payment information handling.
Logistics Data Sharing
Contracts with delivery partners addressing customer data access limited to fulfilment purposes.
Customer Analytics
Agreements for data analytics services including personalization engines, recommendation systems, and customer segmentation.
Applying the TCL Framework
Technical
- Consent management platform implementation and integration
- Cookie consent and tracking technology compliance
- Data anonymization and pseudonymization for analytics
- Access controls for customer data across systems
- Secure data sharing APIs for ecosystem partners
Commercial
- Data monetization within DPDPA constraints
- Advertising revenue implications of consent requirements
- Partner data sharing fees and restrictions
- Customer data as asset in M&A contexts
- Pricing for privacy-preserving analytics services
Legal
- DPDPA consent requirements implementation
- Consumer Protection (E-Commerce) Rules compliance
- Marketplace seller agreement data provisions
- Advertising partner data processing agreements
- Data principal rights handling procedures
"E-commerce grew by treating customer data as a free resource. That era is ending. The businesses that thrive under DPDPA will be those that earn customer trust through transparent data practices—not those that find clever ways to extract consent customers don't understand."
Common Pitfalls
Dark Pattern Risks
Interface designs that manipulate consent—pre-ticked boxes, confusing language, hiding opt-outs—violate DPDPA and invite regulatory action.
Marketplace Assumption
Assuming marketplace platform can use seller customer data freely when DPDPA requires specific authorization for each processing purpose.
Third-Party Data Blindspots
Sharing customer data with advertising partners without explicit consent for those specific recipients and purposes.
Analytics Overreach
Using customer data for profiling and analytics beyond what consent covers, creating compliance gaps.
Data Retention Excess
Retaining customer data indefinitely for potential future use when DPDPA requires deletion when purpose is fulfilled.
E-Commerce Data Regulatory Framework
DPDPA 2023 establishes consent requirements, purpose limitation, and data principal rights that reshape e-commerce data practices. Consumer Protection (E-Commerce) Rules 2020 require explicit consent for data collection and prohibit discriminatory use. Consumer Protection Act 2019 creates product liability and unfair trade practice frameworks. Information Technology Act provisions on data breach notification apply. Payment Card Industry Data Security Standard (PCI-DSS) governs payment data. RBI guidelines on payment data add localization requirements. CCI investigations have examined data practices of dominant platforms. Draft E-Commerce Policy has proposed additional data sharing requirements. Consumer data protection is receiving increasing regulatory attention across multiple frameworks.
Practical Guidance
- Redesign consent flows for DPDPA compliance—clear language, specific purposes, genuine choice without dark patterns.
- Audit data sharing with ecosystem partners—every flow needs contractual coverage with purpose limitations.
- Implement data retention policies—define retention periods by data type and purpose, build deletion automation.
- Review advertising data practices—third-party sharing for advertising requires explicit consent for those specific uses.
- Address marketplace seller data access—sellers may need order fulfilment data but not customer profiles for their own marketing.
- Build data principal rights handling—access, correction, erasure requests need defined processes and response timelines.
Frequently Asked Questions
Related Practice Areas
Need Assistance with E-Commerce Privacy?
Our team brings deep expertise in sector data privacy matters.