E-commerce marketplaces and D2C brands collect personal data at every step: sign-up, browsing, checkout, delivery, returns and reviews. Much of it then flows to payment gateways, logistics partners, ad platforms and analytics tools. Under the Digital Personal Data Protection Act 2023, the brand remains the Data Fiduciary for all of it.
How DPDP applies to e-commerce
- Purpose-specific consent: data needed to fulfil an order is different from data used for marketing, personalisation or retargeting. Each purpose must be itemised in the notice, and consent for marketing cannot be a condition of buying.
- Trackers and pixels: sharing customer identifiers or behaviour with ad and analytics platforms is processing that needs a lawful basis and must be covered in the notice.
- Inactive accounts: the Rules require large e-commerce entities above a prescribed user threshold to erase personal data after a set period of user inactivity, with advance notice to the user.
- Dark patterns: pre-ticked boxes and confusing opt-outs undermine the requirement that consent be free and unambiguous, and also sit uneasily with consumer protection guidance on dark patterns.
Gaps commonly found in e-commerce
- One checkbox covering terms, privacy policy and marketing together
- Marketing pixels firing before the user has seen any notice
- Unsubscribe links that stop emails but not SMS, WhatsApp or retargeting
- Customer data exported to spreadsheets for campaigns and never deleted
- Logistics and customer-support vendors with full customer data access and no processor terms
- No clear retention period for dormant accounts and old orders
- Account deletion requests handled manually, inconsistently, or not at all
Priorities before May 2027
- Separate order-fulfilment consent from marketing and personalisation consent.
- Audit every tag, pixel and SDK on the site and app, and what data each sends.
- Make withdrawal work across all channels, not just email.
- Define retention periods and automate erasure for inactive accounts.
- Add processor clauses to logistics, payments, support and marketing vendor contracts.
See DPDP Rules 2025 explained for the timeline, and the DPDP audit checklist for a full self-assessment.
