Data Protection, Trust, and Sustainability in Digital Commerce: A Legal Analysis of India's Digital Personal Data Protection Act, 2023

Abstract The rapid expansion of digital commerce and e-business platforms in India has altered market structures, customer behavior, and corporate strategies. This swift digitization has concurrently heightened apprehensions over personal data exploitation, monitoring, algorithmic profiling, and the deterioration of customer trust. The Digital Personal Data Protection Act, 2023 (DPDP Act) is India's first complete set of laws that govern how personal data is used in digital settings. This paper examines the DPDP Act, 2023 about the governance of digital commerce, emphasizing privacy protection, regulatory accountability, and sustainable digital business practices. This study utilizes a doctrinal and analytical research methodology to rigorously evaluate major components of the DPDP Act, encompassing consent management, data fiduciary responsibilities, cross-border data transfers, grievance resolution mechanisms, and penalties for non-compliance. The document contextualizes these regulations within the practical frameworks of e-commerce platforms, fintech services, digital marketplaces, and AI-driven business models. Comparative analyses of worldwide data protection regulations, especially the EU GDPR, are utilized to assess the sufficiency and shortcomings of India's developing data protection framework. The study concludes that although the DPDP Act enhances consumer rights and establishes accountability within digital commerce ecosystems, persistent structural and enforcement issues exist, especially with platform asymmetry, informed consent, and regulatory capacity. The paper contends that the effective execution of the DPDP Act can substantially improve consumer confidence, ethical data utilization, and the enduring viability of digital commerce in India. The article concludes by asserting that strong data protection is not only a legal obligation but also a fundamental component for inclusive, resilient, and sustainable digital economic development.