Data Privacy and Implications for India’s Online Dispute Resolution Economy

Abstract

With the rise of digitalization in the legal process, Online Dispute Resolution (ODR) has developed a role to play in the provision of accessible costing justice digitally and providing access to justice. More importantly, the challenge has presented itself to the ODR environment to now find balance between information protection as ODR platforms process vast amounts of personal and sensitive data with need for positive technical performance. This paper will look at how the legal framework of ODR is going to be affected with the coming of the Digital Personal Data Protection Act, 2023 (DPDP Act). The paper explores the DPDP Act's framework and guiding principles of legitimate permission, data minimization, purpose limitation, legal claims to be asserted, and user rights, before examining the implications for platforms, disputing parties, neutrals, and others involved in the ODR ecosystem. The paper highlights emerging issues regarding consent management, cross-border data flow, AI incorporating into dispute systems and deploying its services not as a legally appointed decision maker but as a data fiduciary to support procedural fairness. The paper sheds light on how advanced privacy regulations use tools like a privacy-by-design framework and Data Protection Impact Assessments to include security, accountability, and transparency in digital dispute processes. The paper advocates a privacy-focused ODR framework for India that preserves user trust while promoting innovation in dispute resolution by analyzing legal lacunae, real-life disputes, and policy implications.  It concludes with specific recommendations on how to operationalize data security ideas into India's new on-line justice system.