What is a data fiduciary?

A data fiduciary is an entity responsible for managing and safeguarding user data in a way that serves the best interests of individuals. This framework, inspired by fiduciary duties in finance and law, ensures that organizations handling personal data do so ethically and transparently.

Key aspects of data fiduciary:

• Obligation to protect users’ interests: Data fiduciaries must not misuse user data for their own benefit, ensuring privacy is maintained.
• Transparency & accountability: They should clearly explain how data is used and comply with privacy regulations.
• Minimized data collection: Only the necessary data should be collected and used.
• Consent & control: Users should have control over their data and be able to consent or withdraw consent easily.

India’s Digital Personal Data Protection Act (DPDP) introduces this concept, enforcing strict obligations for companies managing large-scale personal data.