As of August 28, 2025, new data privacy regulations, including India’s Digital Personal Data Protection Act (DPDPA) and global laws like GDPR, are reshaping how shoppers and retailers interact. Consumers gain control over personal data, while retailers face stricter compliance. Rules mandate explicit consent, data minimization, and transparency in data collection. Impacting retail globally, with India’s DPDPA and U.S. state laws leading the charge. Enforced in 2025, with India’s rules effective from August. Retailers must adapt practices, while shoppers enjoy enhanced privacy and trust.
India’s DPDPA: A Game-Changer at Checkout
India’s DPDPA, enacted in 2023 with draft rules released in 2025, prohibits retailers from collecting personal data, like phone numbers, without clear purpose and explicit consent. Shoppers must receive plain-language notices detailing data use and can withdraw consent easily, with penalties up to ₹250 crore for violations. For example, asking for a phone number at checkout for billing now requires a keypad entry to avoid public disclosure. This empowers consumers like Arjun, who can refuse data sharing without losing service, fostering trust.
Global Privacy Laws Impacting Retail
Globally, the EU’s GDPR, China’s PIPL, and U.S. state laws like California’s CPRA (effective 2023) set stringent standards. GDPR requires opt-in consent for EU residents’ data, while PIPL mandates data localization in China, impacting global retailers. In the U.S., 20 states, including Colorado and Virginia, enforce laws giving consumers rights to access, delete, or opt out of data sales. Retailers face challenges aligning with these fragmented regulations, with non-compliance fines reaching 4% of annual revenue under GDPR.
What It Means for Shoppers
Shoppers gain unprecedented control. In India, DPDPA ensures they aren’t coerced into sharing details, with 79% of Americans surveyed by Cisco expressing data privacy concerns, a sentiment echoed globally. Consumers can opt out of targeted ads, access their data, or request deletion, per ROI Revolution. For instance, loyalty programs now require clear consent, and shoppers can avoid verbal data sharing at counters.
Challenges and Opportunities for Retailers
Retailers must overhaul data practices, adopting technologies like anonymized analytics to avoid collecting personally identifiable information (PII), per Retail Customer Experience. Data clean rooms, as noted by Albertsons’ Andrew Tobel, enable privacy-conscious personalization, though they aren’t foolproof, per Grocery Dive. Compliance costs are high, but transparency builds trust, with 83% of shoppers willing to pay more for secure data practices, per Modern Retail. Will retailers view privacy as a burden or a competitive edge? In 2025, embracing first-party data and ethical AI, as suggested by KPMG, can enhance customer loyalty.
-By Manoj H
