How DPDP Act can reshape rules for influencers and digital marketers

The Indian government has introduced the draft Digital Personal Data Protection (DPDP) Rules, 2025, aimed at strengthening citizens' control over their personal data in the digital space.

With over 950 million internet subscribers, the rules are designed to operationalize the Digital Personal Data Protection Act, 2023, underscoring India's commitment to a robust data protection framework. Public feedback on the draft rules will be accepted until February 18, 2025.

One of the most transformative provisions of the Act is that platforms must obtain explicit consent from users before collecting or processing their personal data. Additionally, businesses are required to delete customer data after three years of inactivity, with a 48-hour prior notification to the user. Non-compliance, security breaches could result in penalties up to Rs 250 crore.

The Shift Toward Ethical Marketing

These regulations are set to significantly impact digital advertising and influencer marketing. Currently, algorithms analyse which posts a user likes, shares and engages with alongside his personal data such as age, gender, location, and online behavior—to personalize content and advertisements.

The DPDP Act's emphasis on data minimization and user consent challenges this model, pushing brands toward more ethical and transparent engagement strategies.

Ayush Nambiar, Chief Strategist & Director at Flags Communications, notes, "The DPDP Act will redefine the way brands, influencers, and platforms operate. While it enforces stricter protocols for data collection and storage, it simultaneously presents an opportunity for brands to embrace a more ethical and transparent relationship with their audience."

Nambiar adds that platforms like Instagram and LinkedIn, which rely on personalized experiences, may initially face challenges adapting their algorithms to comply with the Act's mandates. However, he believes this shift will encourage the industry to innovate beyond invasive targeting, fostering creative, trust-driven engagement.

For influencers and brands, the Act emphasizes the importance of prioritizing consent and responsible data practices. Nambiar suggests that this focus isn't about restricting marketing efforts but empowering brands to redefine their strategies around audience trust.

Example when last year Zepto faced backlash after i-Pill push notification controversy.

Nambiar asserts that effective compliance with the DPDP Act could transform data protection into a competitive advantage, enabling businesses to foster deeper connections with their audiences while standing out as champions of data ethics in an increasingly privacy-conscious world.

Strategic Adjustments for Brands

Ayush Guha, Business Head at HYPP, points out that influencers typically don't collect data directly; instead, platforms handle data collection, and brands utilize this information for targeted advertising. He draws parallels with the European Union's GDPR, where platforms must obtain user consent to capture data, emphasizing that access to personal data should be a fundamental right. Guha anticipates that while there may be adjustments, it will largely be business as usual, with users having the choice to opt out if they prefer.

Regarding strategic adjustments, Guha mentions that brands will need to invest more resources into data management systems to ensure compliance with the new law. Influencer agencies must also exercise caution to adhere to regulations. He notes that while top-tier influencers may not engage in cost-per-click (CPC) campaigns, publications and websites that do will likely increase their charges. Consequently, brands might face higher costs for targeted campaigns.

Siva Balakrishnan, CEO & Founder of Vserve, a global e-commerce provider for big players like Amazon highlights the Act's potential impact on influencer-based campaign metrics.

“With reduced access to granular customer data, brands might face difficulties in precisely measuring campaign ROI, leading to cautious spending on influencer collaborations. Budgets may shift toward influencers who consistently demonstrate high engagement or platforms offering compliant data insights,” he says.

Broader Metrics for Success

Balakrishnan adds that this could redefine the value of influencer partnerships. “The focus will move beyond direct conversions to include broader metrics like content quality, audience authenticity, and brand alignment. Influencers who provide detailed, platform-approved analytics or consistently deliver organic engagement may command higher rates despite restricted data access.”

While the Act adds operational complexity, Balakrishnan believes it presents an opportunity for influencers to differentiate themselves. “Transparent data practices and strong content strategies can offset budget tightening, ensuring sustainable earnings in the long term,” he notes.

Parental Consent and Younger Audiences

The DPDP Act also requires parental consent for social media users under 18, which could impact follower counts and engagement rates. Guha observes that established creators under 18 already involve parental consent for business transactions. He predicts a potential decline in new social media users under 18 due to this requirement but expects minimal impact on influencers themselves, as they aren't directly involved in data collection. However, he foresees an increase in the cost of targeted advertising due to higher data storage expenses to maintain compliance.

Practical Steps for Compliance

Delphin Varghese, Co-founder & Chief Revenue Officer at AdCounty Media, outlines five measures that brands must embrace in 2025 after DPDP Act launch:

• Companies must clearly report what information is being collected, how it will be used, and how long it will be stored. Influencer collaborations should incorporate privacy policies to build trust.
• Varghese advocates for campaigns that encourage voluntary data sharing. Requests for special content, surveys, and contests can motivate users to share information knowingly and willingly, he explains.
• Brands are expected to rely more on direct audience connections via owned platforms like websites and email lists. “This reduces reliance on platform-driven data and increases compliance,” Varghese adds.
• Varghese advises collecting only essential data and avoiding prolonged storage. “This not only reduces compliance risks but also aligns with the principles of privacy by design,” he says.
• “Brands will be obliged to justify data usage and the consent attained for it. Influencers may have little access to bespoke user data unless platforms develop open consent models,” he says.

A New Era of Ethical Advertising

Shrenik Gandhi, Co-founder and CEO of White Rivers Media, views the DPDP Act as an opportunity for the industry to reset its approach.

Gandhi highlights that success in this evolving landscape depends on adopting clear consent systems, demystifying data practices, and empowering influencers with compliance know-how. He notes that retargeting activities may also be affected.

The DPDP Act sets the stage for an ethical, privacy-conscious era of digital advertising. From brands to influencers, stakeholders have the opportunity to redefine strategies, prioritize transparency, and build trust. For brands and influencers alike, the message is clear: privacy isn’t optional—it’s the new standard, he says.