A data fiduciary is an entity that decides why personal data is collected and how it will be processed. In simple terms, if you are the one choosing the purpose and method of handling someone’s data, you hold the role of a data fiduciary. This idea plays a major role in India’s Digital Personal Data Protection (DPDP) Act, which places clear responsibilities on anyone managing customer information.
For most online businesses, especially eCommerce stores, being a data fiduciary is not optional. When you collect a visitor’s email for marketing, ask for their shipping details during checkout, or store their order history, you are making decisions about their personal data. That means you must follow key obligations such as requesting clear consent, explaining your data practices, safeguarding user information, and allowing customers to access or correct their data when needed.
The DPDP Act also places additional requirements on entities managing large volumes of data or handling sensitive information. Understanding these duties helps businesses build trust and avoid compliance issues.If you want a detailed breakdown of how the DPDP Act works and what it means for businesses, you can explore our full guide on Understanding India’s Digital Personal Data Protection (DPDP) Act for Businesses.