The government has implemented important amendments to the Consumer Protection (E-Commerce) Rules, 2020, enhancing regulations for online shopping in India. From January 1, 2027, all e-commerce platforms will be mandated to display both the discounted price and the previous price when discounts are advertised. The previous price must reflect the lowest price at which the product was available in the 30 days preceding the discount announcement.

This new requirement aims to offer consumers clarity about whether the discounts being advertised are genuine, thus aiding in more informed purchasing decisions. Online shoppers will now have a clearer understanding of price reductions, effectively addressing potential confusion regarding pricing practices.

Changes to Search Result Manipulation and Sponsored Listings

In an effort to ensure consumers have accurate information, the amended rules stipulate that e-commerce platforms must not manipulate search results. This means that products must be displayed based on their relevance to user queries, rather than according to misleading promotional tactics.

Additionally, the updates mandate that any sponsored products appearing in search results must be clearly identified as advertisements. This disclosure will help consumers make a distinction between organically listed products and those promoted through paid sponsorships.

These measures are designed to maintain integrity in how products are presented to shoppers, ensuring that consumers are not misled by false representations of product popularity or availability.

Information Provision and Consumer Rights Enhancements

Another significant amendment involves the requirement for e-commerce platforms to provide comprehensive information regarding products before a purchase is made. Details such as best before dates, return and refund policies, warranty information, delivery specifics, and payment-related data must be made readily available to consumers.

The inclusion of this information is particularly crucial for products where expiry dates are a key consideration, as it empowers consumers to make decisions based on complete product data.

Moreover, the rules now require shoppers to be informed about the country of origin and details about the importer for all imported products. This transparency aims to equip consumers with the necessary information regarding the sources of their purchases.

Regulation of Dark Patterns and Consumer Information Use

The Centre’s amendments also address the issue of “dark patterns,” which are design strategies that can lead consumers to make choices that may not align with their preferences. E-commerce companies are now required to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023, which includes conducting annual audits to ensure compliance.

Furthermore, the new regulations restrict how e-commerce platforms can utilise consumer information. Platforms will need to obtain explicit consent before using consumer data for specified purposes and cannot charge bundled fees for unrelated services unless within loyalty or membership programmes. This aims to enhance consumer trust by safeguarding personal data.

Every e-commerce entity will also be required to participate in the National Consumer Helpline process, promoting a more integrated approach to consumer grievances and assistance. Collectively, these changes are aimed at fostering a more transparent and accountable online shopping environment.

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