The National Company Law Appellate Tribunal (NCLAT) has issued an order “clarifying” a previous Competition Commission of India judgment concerning WhatsApp’s privacy policy.
The tribunal’s decision mandates that Meta and its subsidiary WhatsApp must allow users to freely choose whether to share their data and grants users greater authority over their personal information.
The NCLAT specified that WhatsApp users must be provided with a genuine opt-in and opt-out mechanism related to data collection. This move is designed to ensure that individuals can decide what data is collected about them, the purposes for which it is used, and the duration it is stored.
The tribunal emphasised that these mechanisms should be clear, accessible, and not buried in lengthy terms and conditions, so users can make informed decisions about their privacy.
According to the tribunals order, users must retain the right to determine the use of their data at every level. The judgment highlights that any collection or use of data for non-essential purposes, including cross-utilisation for advertising, must only occur with the concerned users express and revocable consent.
Meta and WhatsApp cannot claim unilateral or unrestricted rights over the personal data of users under this directive. The tribunal emphasised the importance of user autonomy, noting that individuals should have final authority over whether their personal details are accessed or processed by the platform.
The NCLATs order gives Meta and WhatsApp a three-month period to implement a revised privacy policy that enables users to both grant and revoke consent for all types of data usage.
This period is intended to provide the companies with sufficient time to adjust their data practices and comply with the new requirements.
The tribunal expects visible and effective changes in how consent is obtained, managed, and respected across all user interactions within the app.
The tribunal’s decision comes amidst ongoing debates about digital privacy and the rights of users in the context of large technology companies’ data practices.
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