Is Your App Privacy Policy Compliant? A Legal Guide for Indian Startups

Introduction

With India’s data privacy landscape evolving rapidly, every mobile or web application handling user data must prioritize legal compliance. A well-drafted privacy policy is not just a legal checkbox—it’s a business imperative. Failing to comply can invite scrutiny from regulators, erode user trust, and lead to hefty penalties under the IT Act and the upcoming Digital Personal Data Protection Act, 2023 (DPDP).

This legal guide for Indian startups helps them understand what makes a privacy policy compliant and future-proof in 2025.

1. Why Every App Needs a Privacy Policy

A privacy policy outlines how your app collects, stores, uses, and shares user data.

• Required under the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011

• Soon to be governed by the Digital Personal Data Protection Act, 2023

• Mandatory for apps that collect personal or sensitive data (e.g., names, contact info, payment details, health data)

2. Key Clauses Your Privacy Policy Must IncludeEnsure your privacy policy covers these essential areas:

• Data Collected: List all types of data you collect—personal, sensitive, device-specific, etc.

• Purpose of Collection: Explain why you need each data point (e.g., for personalization, payments, analytics)

• Data Sharing: Disclose if data is shared with third parties (e.g., analytics providers, payment gateways)

• Data Storage: Mention where and how data is stored and the duration of retention

• User Rights: Inform users about their rights to access, correct, or delete their data

• Grievance Redressal: Provide the name and contact info of a grievance officer (mandatory under Indian law)

• Security Measures: Describe encryption, access control, and other security protocols used

3. Special Considerations Under the DPDP Act, 2023

Once notified, this Act will bring in:

• User Consent Requirements: Specific, informed, and revocable

• Data Fiduciary Duties: App developers must ensure purpose limitation, data minimization, and transparency

• Data Principal Rights: Users will have stronger rights to withdraw consent and seek erasure

Tip: Start aligning your privacy policy now to future-proof your app.

4. What Happens If You Don’t Comply?

• Under the IT Act, penalties can go up to ₹5 crores for data breaches or negligent data handling

• The DPDP Act proposes fines up to ₹250 crores for violations

• App stores may delist non-compliant apps

• Users may file complaints or stop using your service

5. Best Practices for App Privacy Compliance

• Keep the language clear and concise—avoid legal jargon

• Make your privacy policy easily accessible within the app and website

• Implement a consent mechanism (pop-ups, opt-ins, checkboxes)

• Update your privacy policy regularly to reflect new features or data uses

Conclusion

Data privacy isn’t just a legal formality—it’s a marker of your startup’s professionalism and user trustworthiness. With regulators and users becoming more privacy-conscious, a robust, compliant privacy policy can be your competitive edge.

At Apar Law, we help Indian startups build legally compliant privacy policies tailored to their business model and user base.