Summary The government has amended the Consumer Protection (E-Commerce) Rules, 2020, issued under the Consumer Protection Act, 2019, with the amendments stated to become effective from 1 January 2027. The changes address practices followed by e-commerce platforms and sellers and are presented against the backdrop of complaints received by the National Consumer Helpline, with 29% of all complaints received in 2025 stated to relate to e-commerce platforms. The key changes include requirements concerning dual price display, under which advertised discounts must show both the reduced price and the prior price defined as the lowest price at which the product was offered during the preceding 30 days. The amendments also address search-result manipulation and require clear disclosure for paid or sponsored listings. E-commerce platforms must comply with the 2023 Dark Patterns Guidelines, including restrictions on deceptive practices such as pre-checked boxes, fake countdown timers, false scarcity, forced subscriptions and disguised advertisements, along with yearly self-audits and prominent display of a compliance certificate. The changes further require greater product and seller transparency, including information concerning best-before or use-before dates, returns and refunds, warranties, delivery, payment and seller details. Stricter data-consent requirements provide that consumer data may be used only for purposes expressly and affirmatively consented to, while bundled fees are stated to be prohibited subject to the stated loyalty or membership programme exception. Finally, platforms must compulsorily join the National Consumer Helpline convergence process so that consumer complaints can flow directly into their grievance systems, increasing visibility of unresolved complaints and requiring stronger grievance redressal mechanisms.
Introduction
The government has amended the Consumer Protection (E-Commerce) Rules, 2020 (issued under the Consumer Protection Act, 2019). These rules govern how e-commerce platforms and sellers behave. The amendments will be effective from 1 January 2027.
Why now? Because 29% of all complaints (5.11 lakh of 17.7 lakh) received by the National Consumer Helpline in 2025 were against e-commerce platforms. The government is tightening the screws on deceptive practices.
Key Changes Explained
1. Dual Price Display (Anti-Fake Discount Rule)
- What it means: If you advertise a discount, you must show the reduced price AND the “prior price” which is defined as the lowest price at which the product was offered in the last 30 days.
- Why: Sellers often inflate the MRP (e.g., show ₹2,999 → ₹999 “70% off”) when the product was actually always selling at ₹999. Now the reference price must be genuine.
2. No Search Result Manipulation + Sponsored Label Disclosure
- What it means: Platforms cannot manipulate search results in a way that misleads consumers or reduces the relevance of results to the actual search query.
- Paid/sponsored listings must carry a clear, prominent disclosure.
3. Dark Patterns Ban + Yearly Self-Audit
- What it means: Platforms must comply with the 2023 Dark Patterns Guidelines (practices like: pre-checked boxes for unwanted items, fake countdown timers, “only 2 left” false scarcity, forced subscriptions, disguised ads).
- They must conduct a yearly self-audit and prominently display a compliance certificate on their platform.
For related TaxGuru coverage, see Guidelines for Prevention and Regulation of Dark Patterns, 2023 and CCPA Mandates E-commerce Self-Audits for Dark Patterns.
4. Full Product & Seller Transparency
- What it means: Platforms must provide key information to consumers:
- Best-before / use-before dates
- Return & refund policies
- Warranty details
- Delivery and payment information
- Seller details
- Impact: Listings need to be complete; incomplete product pages = compliance risk.
For the underlying regulatory framework, see Consumer Protection (E-Commerce) Rules, 2020.
5. Stricter Data Consent Rules
- What it means: Consumer data can only be used for purposes explicitly consented to by the consumer (“express and affirmative consent”).
- What’s banned: Bundled fees are banned. Platforms can’t collect fees for services unrelated to the platform. Exception: genuine loyalty or membership programmes (e.g., Amazon Prime, Flipkart Plus) are allowed.
The related requirement for explicit and affirmative consumer consent is also addressed in TaxGuru’s coverage of the CCPA advisory on self-audits for dark patterns.
6. Mandatory National Consumer Helpline (NCH) Integration
- What it means: Every platform must compulsorily join the NCH convergence process i.e., consumer complaints filed with the government helpline will flow directly to the platform’s grievance system.
- Impact: Faster escalation, but also greater visibility of unresolved complaints. Grievance redressal mechanisms must be strengthened.
