Compliance
Child Data Rules under DPDP Act and the ₹200 Crore Penalty
Section 9 of the Digital Personal Data Protection Act forces businesses to obtain verifiable parental consent before handling a child’s data and bans tracking, behavioural monitoring and targeted ads, with non‑compliance attracting a schedule ceiling of up to ₹200 crore.
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Child Data Rules under DPDP Act and the ₹200 Crore Penalty
The DPDP Act defines a child as anyone who has not completed eighteen years of age. This definition is fixed by the statute and does not depend on school enrolment, toys or any other indicator. The age threshold applies to every data processing activity, irrespective of the product’s intended audience.
Verifiable Parental Consent Required
Before a data fiduciary processes personal data of a child, it must obtain consent that can be verified, not merely a self‑declaration. The consent must come from a parent or, where the child has a lawful guardian due to disability, from that guardian. Verification typically involves methods that can be audited, such as OTPs to a registered mobile number or government‑issued IDs, raising the compliance bar above a simple tick‑box.
Absolute Prohibitions on Tracking and Ads
Section 9 places three clear bans: tracking or behavioural monitoring of children, targeted advertising directed at children, and any processing likely to harm a child’s well‑being. These are outright prohibitions; they cannot be waived by parental consent. The law treats these activities as inherently unsafe for minors, so businesses must redesign any feature that attempts to profile or serve ads to users under eighteen.
Common Pitfalls to Avoid
Businesses that overlook these obligations expose themselves to the schedule ceiling of up to ₹200 crore. The Data Protection Board will determine the exact amount based on factors such as the nature of the breach, the scale of affected data, and steps taken to mitigate harm. This penalty sits alongside a separate ₹250 crore security head, highlighting the financial stakes of non‑compliance. Implementing compliant consent flows often requires technical changes, such as integrating identity verification APIs and maintaining audit logs. Companies must also audit existing data pipelines to ensure no tracking scripts or behavioural models run on users identified as minors. Failure to strip such logic can be deemed processing likely to cause detrimental effects, attracting additional liability. For startups and small enterprises, the cost of compliance may appear steep, but the alternative—potential fines in the hundreds of crores—can be existential. Early investment in compliant design, clear privacy notices, and robust consent management can mitigate both financial risk and reputational damage. The Act also empowers the Central Government to notify a lower age for data fiduciaries that can demonstrate verifiable safety. Until such a notification is issued, the eighteen‑year threshold remains the operative standard, and businesses should plan their data handling policies accordingly. Regular training for staff handling personal data, periodic privacy impact assessments, and a documented response plan for breaches are practical steps. These measures not only help meet the DPDP requirements but also build trust with customers and regulators alike.
- Relying on a self‑declared age tick box as ‘verification’ – the law demands a higher standard of proof.
- Assuming the rules apply only to products marketed to children – they apply to any processing of a child’s data, regardless of the audience.
- Thinking parental consent unlocks tracking or ads – the prohibitions are absolute and consent does not change them.
- Using a lower age limit from another jurisdiction – under the DPDP Act the default age is eighteen unless the Central Government notifies otherwise.
Common questions
What age is considered a child under the DPDP Act?
A child is anyone who has not completed eighteen years of age. The Act allows the Central Government to notify a lower age for fiduciaries that can prove a verifiably safe process, but the default remains eighteen.
Can parental consent allow targeted advertising to children?
No. Section 9 expressly bans targeted advertising, tracking and behavioural monitoring of children. These prohibitions cannot be overridden by parental consent, making such practices unlawful regardless of consent.
What constitutes verifiable parental consent?
Verifiable consent means the data fiduciary must obtain proof that a parent or lawful guardian has agreed, using methods that can be audited, such as OTP verification, government‑issued IDs or other reliable identity checks, not just a self‑declaration tick box.
How much can a business be fined for breaching child‑data rules?
The Schedule sets a ceiling of up to ₹200 crore for non‑fulfilment of the child‑specific obligations. The Data Protection Board will fix the actual amount based on factors outlined in section 33(2) of the Act.
Related reading
- DPDP Consent Notice: Checklist and Format for Websites & Apps — Section 5 makes a standalone consent notice mandatory before collecting any personal data. What it must contain, where to place it, and common mistakes.
- What Is the DPDP Act 2023? Plain-English Summary for Indian Businesses — India’s Digital Personal Data Protection Act explained without legal jargon — who it applies to, the core rules, and what your business must change.
- DPDP vs GDPR: 7 Key Differences Every Indian Business Must Know — DPDP is not European GDPR with the section numbers changed. Lawful bases, DPO rules, cross-border transfers and penalties compared side-by-side.
Written by Swaraj Layek
Published 26 September 2026. Founder & CEO at VidhiSar. I have watched four companies pay for the same mistake, and it was never the mistake anyone expected. VidhiSar is software, not a law firm: every answer names the section it relies on so you can check it, and anything turning on your specific facts is worth putting to a professional. More about who builds this
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