Dealerships that act now will not only ensure compliance but also position themselves as industry leaders.The Digital Personal Data Protection Act (DPDPA) introduces strict regulations on personal data collection, processing, and storage. Draft rules are open for consultation until February 2025, with implementation expected within 24 months. This regulation will significantly impact dealerships, leaving them with limited time to prepare. Dealerships must act today to overhaul their systems and processes to comply with the act.
DPDPA mandates that organisations collecting personal data must obtain consent from employees and customers, promise to use it solely for the stated purpose, and ensure it is kept secure. To comply, dealerships must identify and secure all personal data, eliminate manual processes, and transition to fully digitised operations. Unified systems that integrate all operations are essential for ensuring compliance, streamlining data handling, and mitigating risks. Additionally, dealerships must secure verifiable consent for data collection, conduct regular audits, and implement real-time monitoring to prevent breaches.
The consequences of non-compliance are severe. Government-imposed fines can run into tens of crores of rupees, but the financial risks extend beyond penalties. Criminal lawsuits alleging data mishandling under false promises of security can be initiated by customers or employees, leading to significant legal costs and reputational damage. These risks underscore the urgent need for dealerships to take immediate and decisive action.
Comprehensive digital transformation is not a process that can be rushed. Integrated end-to-end digitisation to replace manual processes and fragmented systems requires careful planning, correct implementation, and employee training. While complex, this transformation is critical for safeguarding customer trust and ensuring data security.
Dealerships that act now will not only ensure compliance but also position themselves as industry leaders. Proactive steps today can enhance operational efficiency, improve customer experiences, and future-proof the business against evolving regulations. Delaying action risks leaving dealerships unprepared and struggling to adapt to an increasingly stringent regulatory landscape.
(Viren Choudhary is the founder and CEO of Readywire. Views are personal.)
