India introduces stricter e-commerce rules on discounts, search and sponsored listings

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New e-commerce rules put greater focus on pricing and consumer transparency Credit: Mint
New e-commerce rules put greater focus on pricing and consumer transparency Credit: Mint

India is set to tighten transparency and consumer protection requirements for e-commerce platforms, with new rules covering discounts, search rankings, sponsored listings, dark patterns and seller information.

The Department of Consumer Affairs has introduced the Consumer Protection (E-Commerce) (Amendment) Rules, 2026, replacing the existing 2020 rules. The amendments will come into force on January 1, 2027.

Under the new rules, platforms announcing price reductions must show both the reduced price and the prior price. The prior price will be defined as the lowest price at which the product or service was offered during the 30 days before the discount was announced.

E-commerce entities will also be prohibited from manipulating search results in ways that mislead users or reduce the relevance of results to their search queries.

“With the changing consumer buying patterns and the expanding scope of e-commerce, it has become important to strengthen the regulatory framework to address emerging concerns in the digital marketplace,” said Nidhi Khare, secretary, Department of Consumer Affairs.

“The new norms seek to enhance transparency, accountability and consumer protection while ensuring a balanced regulatory environment for the growth of the e-commerce sector,” Khare said.

The amended rules introduce specific requirements covering consumer grievances, pricing disclosures, search results, sponsored listings, dark patterns and seller information.

Sponsored listings will have to carry clear and prominent disclosures so consumers can identify paid placements.

The rules also strengthen requirements around dark patterns, which are digital interface practices that can influence or manipulate consumer choices. Platforms will have to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023, conduct a yearly self-audit and prominently display a certificate of compliance.

Every e-commerce entity will also have to become a partner in the National Consumer Helpline (NCH) convergence process. Grievance officers will be required to provide complainants with a copy of their recorded complaint.

E-commerce marketplace entities must provide key seller and product information, including best before/use before dates, return and refund terms, warranty, delivery and payment details. For imported products, platforms must also disclose the importer and country of origin.

Platforms cannot use consumer information for specified purposes without express consent. They will also be prohibited from collecting bundled fees for services unrelated to the e-commerce platform, except where specified for loyalty or membership programmes.

The changes come as India’s e-commerce market is projected to grow from around $140 billion currently to as much as $300 billion by 2030, according to a February 2026 report by Boston Consulting Group. Online shoppers are projected to increase from 280-300 million in 2025 to 420-440 million by 2030.

Consumer complaints have also remained significant. In 2025, the National Consumer Helpline received 17,71,622 complaints, of which 5,11,196, or around 29%, were related to e-commerce.

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