Childproofing Consent: Adapting to the DPDP Law on Children’s Data

February 15, 2024

Anahad Narain

Founder's Office

Summary

  • The Digital Peronal Data Protection Act mandates parental consent for processing a child's personal data, requiring verification of the user's age, the guardian's identity, and the legitimacy of their relationship.
  • There are no fool-proof age verification methods currently.
  • The government is developing some techno-legal frameworks to solve for this such as Digilocker, Consent Token systems, and Aadhar based QR codes.
  • The DPDP Act prohibits processing activities harmful to children's well-being, such as exposure to inappropriate content, behavioural monitoring, and ads targeted towards children.

The Digital Personal Data Protection (DPDP) Act marks a historic evolution in India's data privacy landscape. With an emphasis on individual consent, the DPDP Act empowers users with rights and unprecedented control over their data. Read our detailed breakdown of the DPDP Act to know more about India’s first data protection law.

The DPDP Act provides specialised protections for children and persons with disabilities. It is crucial for businesses to understand these laws to manage their systems in a compliant manner. Failure to comply with the DPDP’s provisions on children’s data can attract penalties up to ₹200 Crores.

What is the DPDP law on children’s consent?

DPDP Law says that a child’s personal data cannot be processed without parental consent. The same applies for persons with disabilities and their lawful guardians. To collect valid consent for using a child’s personal data you must:

  • Verify if the user is a child (person below 18 years of age);
  • Validate the guardian's identity and age to verify they are not minors themselves;
  • Verify legitimacy of the relationship between the parent and child;
  • Collect ‘verifiable’ consent from the parent/guardian;

To meet the threshold of verifiable consent, you must maintain detailed records showing that you fulfilled the above prerequisites for children’s consent. Naturally, all of the usual consent obligations such as obligation to give clear and specific notice, option of easy withdrawal of consent and erasure of data must also be provided. Remember that legally it is the Data Fiduciary’s responsibility to ensure that the consenting user is not a child. This inevitably means you must verify the age of all of your users. 

You will need to verify the age of every single customer

How do you verify the age of every single user?

There is no perfect solution for age gating as of now. Some common methods include self declarations, quizzes, facial or biometric scans etc. Each of these has their pitfalls: self declarations are unreliable, quizzes can be gamed and hard ID verifications raise privacy concerns. None of the existing solutions are fully compliant with the DPDP standards for children’s consent. Even globally there is no perfect one size fits all solution.

Self declaration is a highly unreliable method of age verification

However, lack of a solution will not absolve you from compliance

Consider the case of GDPR where a third of its fines issued to social media platforms have been linked to children’s data protection, with Instagram and Tiktok amassing over €765 million in fines. It is quite possible for Indian companies to face the same level of scrutiny and penalties if they fail to comply with DPDP’s standards for children’s data. 

How do you collect verifiable parental/guardian consent? 

Let us assume you have successfully age gated your portal and verified the user is in fact a child. Now, how do you collect parental consent?

Presently there is no foolproof solution to authenticating the age or consent of a parent/guardian. The government is in the early stages of developing some techno-legal frameworks to solve for this. So far they have talked about the following approaches:

  1. Digilocker is an online repository for storing government IDs such as Aadhar and driving licence. Parents will be able to add their kids’ Aadhaar details to their DigiLocker platform and businesses would be able to ping DigiLocker to verify if their user is a child. The consent for processing the child’s data will be authenticated via OTP sent to the parent. Within DigiLocker, a consent artefact will show the receipt of parental consents.
  2. An electronic Consent Token system wherein a Consent Manager takes the customer’s government ID, encrypts it to safeguard the ID's content, and only provides the age and name information to the Fiduciary. The Data Fiduciary can run these parameters to verify the user’s age. Such a token system is envisaged in a leaked copy of upcoming DPDP rules.
  3. An Aadhar based QR code or virtual ID generated by Unique Identification Authority of India (UIDAI) that can be used to verify if a person is below 18 years of age without revealing the exact age or other personal data.

We expect the framework for executing children’s consent and age gating to be notified in the upcoming DPDP Rules. It is essential to stay updated on the developments in the techno-legal frameworks to prepare to adapt before it is too late. 

What are the other obligations on children’s data

Parental consent and age gating are undoubtedly onerous compliance hurdles. But that’s not all, the Digital Personal Data Protection Act puts further restrictions on processing children’s data extending beyond the foundational challenges of age gating. 

No processing likely to cause detrimental effect

The DPDP Act bans processing that is likely to cause 'detrimental effect' to well being of children

The Act prohibits processing activities likely to cause any ‘detrimental effect’ on the well-being of a child. The term ‘detrimental effect’ has not been defined in the law. These likely refer to activities that could compromise a child's privacy, security, and overall mental and emotional health. 

For instance, exposure to inappropriate content such as violent or explicit material may have adverse effects on a child's development and psychological well-being. Similarly, engaging in digital behaviours that could lead to harassment, cyberbullying, or identity theft can compromise children's safety and mental health. 

No tracking or targeted ads to children 

The DPDP Act prohibits tracking, monitoring and ads targeted at children

The DPDP Act further prohibits tracking or behavioural monitoring of children or targeted advertising directed at children. These terms are also not defined making the exact scope of the obligation unclear. The prohibition may extend to age gating, content filtering or a total bar on monitoring of children's online activities and preferences over time.

For example, a gaming app might analyse a child's gameplay patterns, such as their level progression or in-app purchases to tailor ads to their preferences and gaming habits. Google and Youtube were fined $170 million for tracking children’s online activities without consent and targeting them with personalised ads. Such profiling and targeted promotion would also be prohibited under the DPDP Act. 

Potential exceptions

The government has reserved the power to notify exceptions to the DPDP law on children’s consent on the basis of: 

  • Classes of data fiduciary to whom the obligations will not apply. Educational institutions, healthcare providers, NGOs or other types of entities may be exempted to allow ease of operations for the benefit of children.
  • Specific purposes of processing that will be exempt: processing for child welfare or academic purposes may be exempted.
  • A lower age for the applicability of the rules on parental consent and tracking: the age of 18 may be lowered to 16, 13 or other appropriate number depending on the notification. This will only happen if the government is satisfied that the fiduciary is processing children’s data in a verifiably safe manner. 

The exact scope of the exceptions will depend on the rules and notifications to be released in the future. Please note that these exceptions will not exempt you from activities likely to cause detrimental effects to children. 

The path forward

As the government moves towards finalising the DPDP Rules, businesses must remain vigilant, anticipating potential exceptions and making timely changes. It is imperative to prioritise age verification mechanisms that balance accuracy with accessibility, ensuring that children's rights are upheld while facilitating their online engagement. Collaborative efforts between government agencies and industry stakeholders will be essential in developing comprehensive guidelines that promote children's safety and privacy in the digital realm.

In the near future you can expect further refinement of age verification technologies, greater clarity on regulatory exemptions, and increased awareness of children's digital rights. By embracing a holistic approach to children's data protection, organisations can foster a culture of responsible data stewardship, safeguarding the next generation's digital future while fostering innovation and inclusivity.

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