What Happens If You Don’t Comply with the DPDP Act? A Risk Breakdown

India’s Digital Personal Data Protection Act (DPDPA), 2023 is now officially live ushering in a new era of accountability for every business that collects, stores, or processes personal data.

But what happens if your business doesn’t comply?

If your website skips the consent banner, forgets to verify a user’s age, or shares personal data without proper notice you're no longer just making a product mistake. You’re entering a legal danger zone.

Here’s a breakdown of the real-world risks, financial penalties, and enforcement actions that await non-compliant businesses in 2026 and how to avoid them.

Why Compliance Is No Longer Optional

Backed by the newly notified DPDP Rules, 2025, the Act requires that all Data Fiduciaries adhere to clear obligations around:

• Verifiable consent collection

• Purpose limitation for data use

• Clarity in privacy notices

• Timely breach notifications

• Cross-border transfer controls

• Grievance redressal mechanisms

• Data erasure and retention policies

Non-compliance doesn’t result in a slap on the wrist it could lead to penalties of up to ₹250 crore per breach, as outlined in Section 33 of the Act.

Real-World Violations and Their Consequences

Let’s look at what common violations could cost you:

• Missing “Reject All” button on cookie banners
  Violates consent parity. May result in penalties for failure to fulfill obligations under Rules 5–9 and Section 33(b).

• Sharing user data with third parties without disclosure
  Breaches the principle of purpose limitation. Penalized under Section 33(a) for processing data beyond consented use.

• Ignoring data erasure requests
  Violates the right of the Data Principal. Covered under Rule 13 and punishable via Section 33(g).

• Failure to notify data breaches within 72 hours
  Non-compliance with Rule 18. Punishable under Section 33(h) with significant fines.

• No grievance officer or escalation system
  Violates user rights under Rule 21. Attracts penalties under Section 33(i).

These are not edge cases they are everyday risks for websites and apps operating without proper safeguards.

Understanding Section 33: The ₹250 Crore Clause

Section 33 empowers the Data Protection Board of India to issue financial penalties for any breach of duty under the Act. The penalty structure includes:

• Up to ₹250 crore for failing to implement safeguards

• Up to ₹200 crore for mishandling children’s data

• Up to ₹150 crore for improper cross-border transfers

Each fine is per violation, not per company meaning a single breach across multiple users could result in cumulative fines.

How the Enforcement Process Works

1. Triggering Event:
   A complaint, breach, or government audit initiates an investigation.

2. Notice of Non-Compliance:
   The Board issues a formal show-cause notice to your organization.

3. Hearing and Response:
   You’re expected to provide evidence, documentation, or testimony to explain or defend your actions.

4. Penalty Imposition:
   Based on the severity and intent, the Board may impose a fine and publish the outcome.

5. Appeals and Mitigation:
   You can appeal, but you must also demonstrate that the issue has been fixed and future risks mitigated.

What Can Your Business Do Right Now to Avoid This Risk?

• Conduct a DPDP Gap Audit:
  Map all your current data flows, third-party tools, and consent practices against each clause of the Rules.

• Implement Consent Management Infrastructure:
  Use platforms that offer verifiable, purpose-linked consent collection with audit trails.

• Update All Privacy Notices:
  Ensure your disclosures are clear, multi-layered, and accessible to all users, including children and the elderly.

• Set Up Breach Notification Protocols:
  Develop workflows to detect, log, and report personal data breaches within the mandated 72-hour window.

• Appoint a Grievance Officer:
  Create a clear channel where users can raise privacy complaints and make sure issues are resolved within 7 days.

How Blutic Reduces Your Legal Exposure

Blutic is a fully compliant, DPDP-aligned consent and data governance platform built for Indian businesses. With Blutic, you can:

• Deploy DPDP-compliant consent banners across all platforms

• Enable purpose-linked consent collection with automatic audit logging

• Fulfill user rights under Rule 13 with Erasure APIs

• Track grievance escalations and maintain a 7-day resolution timeline

• Receive real-time alerts for risky data handling or processing workflows

You don’t need a privacy lawyer to interpret every rule. Blutic does the heavy lifting so you can focus on your product not penalties.

Compliance Is Cheaper Than Consequences

The DPDP Act isn’t just a policy, it’s a trust framework for the digital economy. Every user, every click, every cookie comes with responsibility.

Don’t wait for a ₹250 crore wake-up call. Start small. Start smart. Start with Blutic.