DATA PROTECTION AND CORPORATE LIABILITY: BALANCING OF LAW AND SELF REGULATION

Abstract The advent of digital age has posed an increasing challenge for the privacy and protection of electronic data. The corporate liability which rests on the corporations for protection of personal data which they handle is an increasing concern for the free flow of information in international commerce. Several upcoming laws which are being proposed whether in EU, US and India propose to pose all the more stricter liabilities whether in terms of criminal or compensatory provisions. However, the need of the hour is the balance of self regulations and legislations. There are several factors to be considered whenever we are trying to establish a framework of corporate liability for data protection. Most of the big corporations have a trans-national character of work in this global age and establishing a rigid and one way approach to data protection regime can be detrimental to the future of a healthy economy. The corporations have to be given a space for implementing their own regulations with respect to data protection to manage the free flow of the huge amount of information which they need to handle. Otherwise the implications are going to be negative in terms of efficient business performance. This paper seeks to analyse the effectiveness of the present law and the road ahead for the future of legal framework of data protection vis a vis corporate liability in India. The whole country at this juncture is seeking to have an all comprehensive legislation for data protection as EU is having, however it is also necessary to understand and determine the ambit and scope of its applicability so that the liability regime is justified and certain in ensuring the optimum and desired results.