What are the potential legal risks in the business scenario: 'Company XYZ plans to launch a new service that uses biometric data for user authentication. They want to store this data in their servers but are concerned about privacy issues.' under Indian law?
Company XYZ could face legal risks related to data protection and privacy under the Information Technology Act, 2000, and its rules. Mismanagement of biometric data or failure to obtain proper consent could lead to penalties. They may also be subject to the provisions of the Personal Data Protection Bill, depending on its current status and application.