From clicks to cash: Legal implications of e-commerce data monetisation

Abstract

The rapid expansion of e-commerce has positioned India as a dominant force in the global digital marketplace. With the proliferation of online platforms employing diverse marketplace models, e-commerce giants entice consumers through substantial discounts and extensive product offerings. While this sector has significantly contributed to India’s economic growth, it simultaneously raises profound legal and regulatory concerns, particularly concerning the monetisation of consumer data. Data-driven strategies enable e-commerce entities to enhance product innovation and amass substantial revenues; however, these practices often encroach upon consumer rights, leading to critical issues such as privacy infringements, unauthorised data exploitation and cross-border complexities in data transfers. This paper critically evaluates the legal implications of e-commerce data monetisation, comparing regulatory frameworks in India and the European Union’s (EU) General Data Protect Regulation (GDPR). It highlights significant legal challenges arising from data-driven marketing strategies, explores consumer rights implications, and assesses the efficacy of India’s Digital Personal Data Protection Act, 2023, against the GDPR standards. By identifying regulatory gaps and suggesting actionable policy enhancements, the study provides strategic insights to policy makers, practitioners and scholars aimed at fostering responsible data monetisation practices and strengthening consumer trust. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.