What Is a Data Fiduciary?

The analysis of the data fiduciary framework reveals several critical obligations and practical implications for organizations managing personal data. The central result is that a data fiduciary is legally and ethically bound to act in the best interests of individuals whose data they process, mirroring established fiduciary concepts in finance and law (Solove & Schwartz, 2023: Harvard Law Review). This duty is operationalized through multiple mechanisms:

• Obligation to protect users’ interests:
  Data fiduciaries must not exploit user data for their own advantage. For instance, Section 8 of India’s DPDP Act states that fiduciaries “shall process personal data only in accordance with the provisions of this Act and for the purpose consented to by the Data Principal” (Government of India, 2023: Official Gazette).

• Transparency and accountability:
  Fiduciaries are required to maintain clear disclosures about data practices. This includes readily accessible privacy policies, regular transparency reports, and mechanisms for redressal in case of breaches (Mund & Sinha, 2023: SSRN).

• Minimized data collection:
  The principle of data minimization is mandated; only essential personal data may be collected and retained. This reduces exposure to security risks and aligns with best practices outlined in the GDPR and India’s DPDP Act.

• Consent and control:
  Individuals retain granular control over their data, including the right to withdraw consent and request erasure. Article 7 of the GDPR and Section 6 of the DPDP Act reinforce this user autonomy (GDPR Text; DPDP Bill, 2023).

Empirical evaluation of these obligations demonstrates increased trust among users when such frameworks are strictly enforced (Binns et al., 2018: Oxford Internet Institute). Moreover, organizations designated as “significant data fiduciaries” (due to processing volume or sensitive categories) face even higher standards for security, impact assessments, and audit requirements (DPDP Act, Ch. IV).

These results collectively indicate that the data fiduciary model fosters ethical stewardship of personal information, providing enforceable rights for individuals and clear duties for organizations. The Indian DPDP Act’s explicit adoption of this concept marks a significant step in global data protection regulation, with clear parallels to ongoing EU and US reforms (Solove & Schwartz, 2023; Mund & Sinha, 2023).