As many industry experts note, India’s new Digital Personal Data Protection Act, 2023 (DPDPA) will “impose several regulations on e-commerce/D2C businesses”. In practice, this means every Indian direct-to-consumer brand must overhaul its approach to customer data. Consent — the user’s permission to collect and use personal data — is central to the law. D2C companies must secure explicit, informed consent from customers from day one as well as responsibly manage that consent! If they do not, there are risks of legal penalties and loss of customer trust. The good news is that D2C brands can employ clear processes and technologies to fulfill the DPDPA’s high consent standards. D2C brands can actually take compliance to a competitive advantage.
How India’s DPDPA Redefines the Consent Contract for D2C
Specifically, the DPDPA legally defines valid consent with exacting criteria. Section 6 of the Act states that consent must be “free, specific, informed, unconditional and unambiguous with a clear affirmative action”. In other words, customers must actively opt in — they must clearly agree to the exact purpose for which their data is needed, and the action giving consent (like ticking a box) must be obvious. Passive or pre-ticked agreements no longer suffice.
Moreover, both consultants and authorities emphasize that DPDPA consent is purpose-bound and granular. Companies cannot bundle multiple uses under a single blanket consent or hide purposes in fine print. Instead, each checkbox or consent screen must state one specific purpose (e.g. “for order delivery” vs. “for product recommendations”). This “purpose-specific, not bundled” rule forces brands to think through every type of data use and explain it to customers.
Finally, the law enshrines transparency and revocability. Each consent request must provide simple notice on why the data is captured. Consumers must be allowed to withdraw consent as easily as they provided it. For D2C brands, this involves implementing simple opt-out paths. Like big “unsubscribe” links, or visible in-app settings. And immediately stopping all use of data on withdrawal. As one privacy analysis explains, businesses must secure “explicit consent from customers…that is freely given, specific, informed, and unambiguous.” And “allow customers to easily withdraw consent at any time.”
In short, the DPDPA puts consumers firmly in the driver’s seat. Any D2C brand that collects personal data must treat consent as an active, informed choice by the user. Not a box to be checked by default. This represents a sea change from older practices. Consent was often assumed or hidden in terms of service. Brands should plan accordingly.
Consent Under the Law—What Indian D2C Players Cannot Overlook
The DPDPA requires businesses to obtain express, informed consent from individuals before processing any personal data. Consent must be free, specific, and informed, with no ambiguous options for “accept all” or pre-ticked boxes. This requires brands to be precise with their disclosure about what data is being collected, as well as for what purpose. Further, processing of personal data must be restricted solely for the purpose disclosed to the individual. If the purpose for processing personal data changes, new consent must be obtained from the individual. For D2C brands, this means each notice of consent must articulate information for each category of data collected and the purpose for which the data will be used.
The Act states that active consent is the default standard for valid consent. Customers must opt in, for example, by checking an un-checked box or clicking an obvious consent button. Passive acceptance, such as silence, inactivity, or accepting the default, is invalid. For instance, if a brand wishes to send promotional emails, the customer must explicitly check a box saying, “I agree to receive marketing updates.” Until that action is taken, data cannot be collected or used for that purpose.
Equally important is clear communication. A complex, jargon-filled privacy notice tucked away in terms and conditions won’t cut it. D2C brands need to use plain, concise, easily understood language so customers can readily grasp what they are consenting to. A best practice is to use short clear statements, like “We use your phone number to send delivery updates,” along with simple check boxes for optional uses, such as newsletters. This way, customers are giving consent and understanding the consent, so they are in line with the DPDPA well intentioned informed choice framework.
How D2C Brands Must Re-Validate Old Data
The DPDPA consent provisions are not limited to new data. They are also applicable to existing customer records. This presents a significant transition challenge for D2C brands. In Section 5, businesses are obligated to inform customers “as soon as is reasonably practicable.” About the personal data they already have.
This provision invalidates many old-school consents collected through antiquated practices. Generic “I consent” checkboxes or some indirect form of permissions no longer satisfy the Act’s requirements. As the professionals have observed, older consents that lack a today’s requirements are effectively null and void. For most D2C brands, this translates into a renewed campaign of consent — reaching out to tell customers the rules, then ultimately confirming their approval of preferences. When customers have been dormant, or unable to be reached, the law is clear — there is no renewed consent, therefore must delete those records. This is costly; the loss of that record demonstrates the gravity of previous investments in marketing and affordability of acquisition.
Also, the transition reinforces the idea of data minimization. As companies audit their records, they can assess what is required, ditch what is not, and remove it permanently. Data can only have a purpose — anything beyond that can be considered violating the law’s concept of “purpose limitation.” Ultimately, For D2C companies, this exercise of re-validating consent as well as scrapping unnecessary data, will support compliance, reduce storage fees, and lessen the risk of data breaches.
Designing Consent Journeys That Customers Read, Not Ignore
Once the legal groundwork is clear, D2C brands must focus on execution — particularly how to design user interfaces that capture valid consent. The guiding principle is clarity. Every form or app screen seeking customer data should include a concise privacy notice or tooltip. Each data field — whether email, phone number, or address — must carry a short, plain-language explanation of its purpose. By doing so, companies fulfil DPDPA’s transparency requirement while reinforcing consumer trust.
Consent prompts must also be granular and interactive. Instead of one broad “I agree” checkbox, brands should present separate, unchecked boxes such as “Email me order updates,” “Send me promotional offers,” or “Allow sharing of data with partners.” This guarantees that customers actively choose what they want. The Act requires such granularity, which negates vague language that says things like “I accept all terms.” Instead, provide unobscured affirmative statements like “Yes, I agree to get SMS updates about my orders,” which reinforces both user choice and the law.
Finally, because DPDPA requires verifiable consent, monitoring systems should automatically track each action to remember the selection the user made, when it was made and how it was done. Even if we did not have a set full Consent Management System, form designs should be nested with tracking in the back end. In practice, every consent request is a micro-learning moment: identify the situation, explain the necessity, show choices and record responses. This ensures consent is specific, informed and unmistakable, not only in the letter of the law but the spirit of the law.
From Policy to Practice Engineering the Consent Backbone
A CMP provides a single source of truth for all consents. It blends automated compliance processes. And provides a straightforward user experience for organizations and end-users. The CMP manages and tracks the consent lifecycle. From opt-in through to audits. Using documented and distributed decision making, process, and technology.
On a technical level, each consent must provide a Consent Artifact, which also generates the metadata for each consent (time stamp, user ID, language, purpose). This provides an immutable proof of the user’s consent of a particular use, when it was granted. Before any data is processed, the system verifies the consent is still valid; if not, it will deny the request. This simply closes off the use of certain data types if they can’t match the original consent use, so they are not misused.
Consent infrastructure also needs to consider updates and renewals of consent. If data is going to be used in a new way, users need to be prompted to consent again, with the prior records kept separate. For consents with rules around time, reminders can automatically generate for renewals before the end date of the consent.
Also just as important is the ability to withdraw consent. Under DPDPA the withdrawal of consent needs to be just as simply as giving the consent. A CMP should provide a straightforward dashboard. It allows users to see what permissions they have provided to organizations. And also allows the immediate withdrawal of consent. Once consent is withdrawn, any processing of personal data for that purpose must stop immediately. Unless required to do so by law.
Consent Compliance Checklist for D2C Brands
To make the above requirements concrete, the table below maps key DPDPA consent provisions to practical steps a D2C brand should take:
| DPDPA Consent Rule | What It Means for D2C Brands | Best Practice for Implementation in India |
|---|---|---|
| Affirmative Opt-In | Consent must be given through clear user action; defaults or pre-ticked boxes are invalid. | Keep all consent boxes unchecked. Require users to actively tick each option (e.g., delivery updates, promotions). |
| Purpose-Specific Consent | Each consent must be tied to a single purpose; bundling is not allowed. | Provide separate checkboxes/toggles for uses like order fulfillment, marketing emails, and third-party sharing. |
| Informed Transparency | Users must know what data is collected and why. | Use plain language notices, short tooltips, and clear links to privacy policies. |
| Easy Revocation | Customers must be able to withdraw consent anytime, as easily as they gave it. | Offer “unsubscribe” links in emails/SMS and a self-service privacy dashboard. Stop processing immediately when consent is revoked. |
| Data Minimization | Only essential data for the stated purpose may be collected. | Regularly audit forms; remove unnecessary fields. Clearly explain why each field (e.g., phone for delivery) is required. |
| Consent Record-Keeping | Brands must log proof of who consented, when, and for what purpose. | Maintain a secure CMP or database that records user ID, purpose, and timestamp. Ensure logs are encrypted and audit-ready. |
Embedding Consent in Company Culture
Compliance is not simply a technical exercise, it is an organizational mindset. Brands with a D2C model need to equip their teams, and educate customers about the new consent norms. Marketers, customer support, and even finance, and legal teams must also understand that personal data now has borders and requires a guarded approach.
Communication with the customer is important too. When asking for consent, it helps to explain consent will allow them to receive helpful information, such as “When you consent, you receive timely updates on your order and appropriate offers – you can change your mind at any time.” Clarity and transparency gives trust in the customer. Businesses should also promote their commitment to the DPDPA. Privacy can be a selling point (have some small badge on website, or note in an email about how you handle data securely) to provide reassurance to consumers. Grant Thornton highlights that today’s savvy consumers are increasingly aware about privacy, and they “are much more likely to transact with companies that they trust to keep their data safe.” Accepting consent as part of customer experience design enables brands to utilise compliance to help create loyalty with the customer.
Also, accountability measures must be obvious. For any sizeable D2C brand, we recommend appointing a DPO or designated person to manage and oversee consent procedures. The function of the DPO is to monitor compliance, refresh policies as rules change in the future, and has the authority to connect with regulators when necessary. Documentation that is audit ready-both electronic audit logs for consents and physical policies-will be important for any examples of regulators wanting to see evidence of compliance. In summary, compliance should be considered part of the daily business of the organisation and not an afterthought.
Trust as the Ultimate Dividend of Responsible Consent
The DPDPA’s consent framework represents a major transition for Indian D2C brands. Successfully building a compliant business model will require companies to shift their passive data collection practices to a consent-first model: they must transparently share their data use, capture active opt-ins, and honor user preferences at every turn. Although this will likely take some work — changing websites, working with employees, and possibly abandoning some unconsented legacy data — the benefit is potentially high. Complying with the Act’s requirements for “explicit, informed” consent is how brands avoid penalties, and gain the trust of their customers. D2C companies that can show they respect user privacy can set themselves apart in a crowded marketplace: as one analysis notes, compliance, in today’s world, can become a competitive edge.
Fundamentally, DPDPA compliance and customer trust are linked. When D2C brands implement transparent and user-friendly consent processes, they signal to consumers that the company respects their autonomy, which fosters loyalty and motivates engagement. So Indian D2C leaders should not look at the new consent rules as a burden, but as an opportunity: an opportunity to build strong customer relationships by protecting their data. That is a strategy that our overflowing, privacy-minded era is sure to reward.
