The Hindu Business Line
Draft e-commerce policy: CII pitches for greater clarity on data-sharing
Industry body CII on Tuesday said the proposed national ecommerce policy should provide greater clarity on data sharing as forced disclosure may raise concerns on privacy.
In its comments on the draft policy floated by the Department for Promotion of Industry and Internal Trade (DPIIT), it said the regulations should not aim at “micro managing” players in the ecommerce sector, but should act as enabler to promote innovations.
In February, the DPIIT floated the draft policy proposing setting up a legal and technological framework for restrictions on cross-border data flow and also laid out conditions for businesses regarding collection or processing of sensitive data locally and storing it abroad.
In its suggestions, the CII said role of an e-commerce platform is that of an intermediary and hence the responsibility of preventing IP infringements while limited, is a joint one with the larger role around liability and gatekeeping on the seller/ manufacturer.
“Forced disclosures and data sharing can infringe privacy concerns and hence greater clarity and calibration are required on the context, procedure and expectations around the government’s right to mandate forced transfer of proprietary information,” the CII said.
The draft says that a business entity that collects or processes any sensitive data in India and stores it abroad, shall be required to adhere to certain conditions. The conditions state that all such data stored abroad shall not be made available to other business entities outside India, for any purpose, even with the customer’s consent.
Further, the data shall also not be made available to a third party for any purpose and it would also not be shared with a foreign government, without the prior permission of Indian authorities, the draft said.