D2C Brands
Liability Check
D2C brands face high liability risks due to Marketing Consent, Abandoned Cart Recovery, and data sharing with 3rd party processors like Shopify and Meta.
Why D2C Brands is at Risk
D2C brands often rely on implicit consent (pre-ticked boxes) for marketing. Under **DPDP Rules 2025**, consent must be 'free, specific, informed, unconditional, and unambiguous'. If you share customer lists with Meta/Google for ad targeting without explicit consent, you are liable as a Data Fiduciary. Additionally, the **72-hour breach notification** rule applies if your customer database is leaked via a third-party plugin.
Common Violations
- 1.Processing abandoned cart data without prior opt-in.
- 2.Sharing customer phone numbers with logistic partners (Shiprocket/Pickrr) without a valid Data Processor contract.
- 3.Failing to erase customer data after the 'specified purpose' (delivery) is complete, as mandated by the 3-year retention limit for e-commerce logs.
The Immediate Fix
Audit your checkout flow. Ensure the 'Subscribe to newsletter' box is **unchecked by default**. Update your Privacy Policy to explicitly list Meta, Google, and logistics partners as Data Processors.
Projected Compliance Deadline: Immediate