The government has announced significant changes to e-commerce regulations aimed at enhancing consumer protection. These amendments to the Consumer Protection (E-Commerce) Rules, 2020, are set to come into effect on January 1, 2027. The revisions are designed to create a transparent regulatory framework for online marketplaces, ensuring fair practices while protecting consumer interests.

The Department of Consumer Affairs highlighted that the new rules will influence various aspects of online shopping. They focus on enhancing price visibility, improving search results, and addressing consumer complaints, ultimately fostering a more reliable online shopping environment.

Enhanced Pricing Transparency and Search Results

A fundamental change introduced is related to how discounts are presented. E-commerce platforms will now be required to display both the discounted price and the original price prior to the discount. According to the official release, the original price should reflect the lowest price at which the item was sold in the 30 days preceding the discount. This measure aims to assist consumers in assessing whether promotional claims, such as “50 per cent off,” are legitimate.

Moreover, the revised regulations prohibit e-commerce platforms from manipulating search results in a manner that misleads users or affects the relevance of results. This provision aims to ensure that users are presented with the most relevant products based on their queries, rather than being directed towards more expensive items or those associated with the platform itself.

The amendments also stipulate that sponsored listings must be clearly marked. This is intended to help consumers differentiate between organic search results and paid placements, promoting transparency regarding advertising practices on these platforms.

Regulation of Dark Patterns and Bundled Fees

The new rules mandate that platforms adhere to the Guidelines for Prevention and Regulation of Dark Patterns, 2023. These guidelines encompass deceptive practices such as false urgency and subscription traps. As part of compliance, e-commerce entities will be required to conduct annual self-audits and display a compliance certificate, thereby reinforcing accountability.

Additionally, platforms are prohibited from collecting bundled fees for unrelated services unless specifically authorised for loyalty or membership programmes. This aims to prevent hidden charges that could mislead consumers during transactions.

In light of consumer complaints, online marketplaces must now provide a documented copy of grievances lodged by users to their grievance officers. This modifies existing processes and mandates that platforms become more integrated with the National Consumer Helpline (NCH), thereby centralising the consumer complaint feedback system.

Mandatory Disclosure of Product Information

The revised regulations require e-commerce entities to furnish essential product and seller information, such as expiration dates, return policies, warranty terms, and payment details. This information aims to enable consumers to make informed purchasing decisions in an increasingly crowded online marketplace.

For imported products, platforms must disclose the identity of the importer and the country of origin. Such requirements are intended to enhance traceability and accountability in product sourcing.

Furthermore, e-commerce platforms are prohibited from using consumer information for specified purposes without obtaining explicit consent from users. This regulation prioritises consumer privacy and reinforces the need for transparency in data handling practices.

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