How will the DPDP Act impact Telemarketing?

November 3, 2023
How does the DPDP Act affect Telemarketing?

Summary

  • Despite TRAI and RBI regulations focused on Unsolicited Commercial Communication (UCC), telemarketing went unchecked due to weak enforcement and regulatory loopholes.
  • The Digital Personal Data Protection Act 2023 is the first authoritative Indian law to strictly prohibit telemarketing without user consent.
  • Penalties of up to ₹50 Crores may apply per instance of violation of the DPDP Act.
  • The DPDP Act holds businesses directly liable for any non-compliant telemarketing activities.
  • Businesses must ensure granular consent for telemarketing, provide valid notice for data collected before the DPDP Act, and offer user rights over data.
  • To manage compliance efficiently, telemarketers should consider onboarding a  Consent Manager to handle consents across all customer interaction channels.

Why is Telemarketing so important?

There are over a billion mobile subscribers, and 64% of Indians receive 3 or more promotional calls every day. The DPDP Act prohibits collection and use of customer data without consent, meaning a complete overhaul is on the horizon.

How will the DPDP Act impact Telemarketing? - illustration
The DPDP Act is much stricter and focused law regulating telemarketing than ever seen before

What does DPDP Act mean for Telemarketing?

Personal data can only be used with granular consent for the specific purpose of marketing. Blanket consents are no longer valid. Violations carry fines up to ₹250 crores per incident.

How will the DPDP Act impact Telemarketing? - illustration
The concept of Consent Managers is new in India but is quite prevalent globally

Leegality Consent Manager can integrate across all your customer acquisition channels and ensure that you remain compliant.

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