The Personal Data Protection Bill 2019, which is currently being examined by a joint parliamentary committee, has raised several concerns among various stakeholders in the digital economy.
According to the bill, a child is defined as anyone who has not completed 18 years of age. The bill also empowers the Data Protection Authority (DPA) to categorize any online service or website as a "guardian data fiduciary" if it primarily or exclusively offers services to children or processes large volumes of personal data of children.
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One of the contentious provisions of the bill is the requirement of age verification and parental consent for processing the personal data of children.
According to the bill, a child is defined as anyone who has not completed 18 years of age. The bill also empowers the Data Protection Authority (DPA) to categorize any online service or website as a "guardian data fiduciary" if it primarily or exclusively offers services to children or processes large volumes of personal data of children.
Such fiduciaries will have to verify the age of their users and obtain parental consent before collecting or processing their data.
This provision has implications for several sectors that rely on online platforms to reach their customers, such as edtech, gaming and social media.
This provision has implications for several sectors that rely on online platforms to reach their customers, such as edtech, gaming and social media.
These sectors have expressed their worries about the feasibility and effectiveness of age verification and parental consent mechanisms, as well as the potential impact on their business models and user experience.
1. Edtech.
1. Edtech.
The edtech sector has witnessed a surge in demand and growth during the Covid-19 pandemic, as schools and colleges shifted to online learning.
According to a report by RedSeer and Omidyar Network India, the edtech market in India is expected to grow from $2.8 billion in 2020 to $10.4 billion by 2025.
However, the data bill could pose a challenge for this sector, as most of its users are children who would need parental consent to access online education services.
Some edtech players have argued that obtaining parental consent for every session or activity would be cumbersome and impractical, especially for low-income or rural households where parents may not have access to digital devices or internet connectivity.
Some edtech players have argued that obtaining parental consent for every session or activity would be cumbersome and impractical, especially for low-income or rural households where parents may not have access to digital devices or internet connectivity.
They have also raised concerns about the privacy and security of children's data, as verifying their age and identity could expose them to risks of identity theft, cyberbullying or online predators.
2. Gaming.
2. Gaming.
The gaming sector is another booming industry in India, with an estimated 400 million gamers and a revenue of $1.5 billion in 2020. According to a report by KPMG and Google, the online gaming market in India is projected to grow at a compound annual growth rate (CAGR) of 40% to reach $3.7 billion by 2024.
However, the data bill could hamper this growth, as most of the popular games are targeted at children and adolescents who would require parental consent to play them online.
Some gaming companies have pointed out that age verification and parental consent would be difficult to implement and enforce, as there is no reliable or standardized way to verify the age of online gamers.
Some gaming companies have pointed out that age verification and parental consent would be difficult to implement and enforce, as there is no reliable or standardized way to verify the age of online gamers.
They have also expressed concerns about the impact on user retention and engagement, as requiring parental consent could discourage potential or existing users from playing online games.
Moreover, they have questioned the need for such stringent regulations for gaming, which is a form of entertainment and not a sensitive or harmful activity.
3. Social Media.
3. Social Media.
The social media sector is also likely to be affected by the data bill, as it has a large number of users who are below 18 years of age. According to a report by Statista, India had 448 million social media users in 2020, out of which 66% were in the age group of 15-34 years.
The data bill could restrict the access and participation of these users on social media platforms, as they would need parental consent to share their personal data or content online.
Some social media platforms have argued that age verification and parental consent would be impractical and ineffective, as many users may lie about their age or use fake identities to bypass these requirements.
Some social media platforms have argued that age verification and parental consent would be impractical and ineffective, as many users may lie about their age or use fake identities to bypass these requirements.
They have also highlighted the benefits of social media for children and young people, such as learning new skills, expressing their opinions, building social connections and accessing information.
They have suggested that instead of imposing blanket restrictions on children's data, there should be more awareness and education on digital literacy and online safety.
Source: economictimes.indiatimes.com
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