Restrictions On Cross-Border Data Flows To Ensure User Data Is Not Misused: CAIT
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Restrictions On Cross-Border Data Flows To Ensure User Data Is Not Misused: CAIT

The Confederation of All India Traders (CAIT) has emphasised the importance of data protection rules in ensuring that the retail and e-commerce sectors are not negatively impacted by big tech companies’ data collection and processing activities.

CAIT stated that it is critical to impose restrictions on cross-border data flows to ensure that user data is not misused, particularly as a result of big tech companies’ endless and unchecked processing of personal data.

Limiting cross-border data flows is critical for developing countries like India to ensure that citizen data is used appropriately, as well as to prevent economic harm caused by unchecked processing of personal data by global big tech companies, CAIT said in a written submission to IT Minister Ashwini Vaishnaw on draught data protection norms.

According to the trade body, supporters of unrestricted cross-border data flow, such as big tech companies, falsely claim that free flowing cross-border personal data benefits countries.

CAIT, there is no evidence that the unrestricted transfer of personal data, even if anonymized, to foreign jurisdictions benefits anyone other than these global players, as per CAIT.

Limiting cross-border data flows is critical for developing countries like India to ensure that citizen data is used appropriately and to avoid economic harm caused by unchecked processing of personal data by global big tech companies, according to CAIT in a written submission to IT Minister Ashwini Vaishnaw on draught data protection norms.

According to the trade body, proponents of unrestricted cross-border data flow, such as large tech firms, falsely claim that free flowing cross-border personal data benefits countries.

According to CAIT, there is no evidence that the unrestricted transfer of personal data to foreign jurisdictions, even if anonymized, benefits anyone other than these global players.

The revised bill also eliminates the previous classification of personal data into critical and sensitive personal data in favour of an umbrella definition that covers all types of personal data, ignoring the disproportionate potential for harm that comes with misuse and breach of sensitive information, According to CAIT.

According to CAIT, requiring large global tech companies to store and process data of Indian citizens within Indian territorial boundaries will improve compliance with the provisions of the intended rules, improve the ability of local law enforcement, and provide effective recourse in the event of personal data misuse or breach.

It would also prevent the economic harm associated with big tech’s unchecked and unrestricted processing and subsequent misuse of Indian citizens’ personal data.

The Confederation of All India Traders (CAIT) represents over 8 crore small and medium traders in India.

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