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Indian law does not directly deal with the use of cookies or equivalent technology.
Section 43 of the IT Act imposes a restriction on accessing, downloading, copying or extracting any data, computer database or information from any computer, computer system or computer network without the permission of the owner or the person in charge. The IT Act imposes both compensation and criminal penalties in case of a breach. The IT Act's language in this regard is broad enough to cover cookies and accordingly consent is technically required for the use of cookies.
Penalties and compensation
Under Section 43A, if a breach results in a wrongful gain or loss, the adjudicating officer or the courts (as the case may be) can order compensation to be paid. There is no maximum compensation prescribed.
How to inform users
Top banner pop-ups:
They pop up the first time a user visits a website, and are right in the main line of sight. These banners are a great way to quickly inform a user that cookies are in use on your website, provide a link to your Cookie Policy, and request consent to place cookies by including something such as a clickable “Continue” link. The user has the option to click “Continue” to give actual consent and is informed that by continuing to browse, even without clicking “Continue,” consent will be assumed.
General pop-up messages:
Providing a pop-up box anywhere on your website will give adequate notice to users that cookies are in use on your website, so long as the pop-up box is conspicuous and clearly states what the purpose of the message is.
A Sample/Generic cookie template :
https://docs.google.com/document/d/1ZgVtL6naS64U1XYz0tu4WQRLTrV6O6fhvSb_Bz5Tp9w/edit?usp=sharing
