Firms developing new tech can avail of exemption from data privacy rules

The government has proposed that companies developing innovative technologies for public good can avail of exemption from the proposed data privacy rules for a limited period.

As part of the draft Data Protection Bill, 2019, cleared by the Union Cabinet last week, the Centre has proposed the creation of a “regulatory sandbox” to ensure that the privacy law doesn’t curtail the ability of companies, especially start-ups innovating around emerging technologies, in the initial phases.

Sandbox refers to a testing environment that enables isolated execution of new software or programme before its mass roll-out.

“The authority shall, for the purposes of encouraging innovation in