India tightens e-commerce rules on ads, pricing and dark patterns

MUMBAI: The online shopping cart is getting a compliance check. The government has tightened India’s e-commerce rules, introducing new requirements around search rankings, sponsored listings, discounts, dark patterns, seller disclosures and consumer data, with the changes taking effect from January 1, 2027.

The Department of Consumer Affairs has notified the Consumer Protection (E-Commerce) (Amendment) Rules, 2026, updating the framework introduced in 2020 as digital marketplaces and consumer concerns have evolved.

One of the biggest changes brings e-commerce platforms closer to the National Consumer Helpline (NCH). Every e-commerce entity will have to become a partner in the NCH convergence process and provide consumers with a copy of complaints recorded by its grievance officer.

The move comes against a sizeable complaint backdrop. The NCH received 17,71,622 complaints in 2025, with 5,11,196, or around 29 per cent, linked to the e-commerce sector.

Search is also coming under sharper scrutiny. Platforms will not be allowed to manipulate search results in ways that mislead consumers or reduce the relevance of results to their queries. Sponsored listings must also carry clear and prominent disclosures, giving shoppers a better chance of telling paid placements from organic results.

Discounts are getting a new rulebook too. When a price reduction is advertised, platforms will have to show both the reduced price and the previous price. Crucially, the previous price will mean the lowest price at which the product or service was offered during the 30 days before the discount was announced.

That could make the familiar sale-season price tag a little harder to play with, giving consumers a clearer reference point for judging whether a discount is actually a discount.

Dark patterns design practices that can influence or manipulate consumer choices are also facing greater oversight. E-commerce entities will have to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023 and conduct a self-audit every year. They must also prominently display a certificate of compliance.

The rules further require marketplace platforms to provide consumers with information including best before or use before dates, return and refund policies, warranty details, delivery information and payment details.

For imported products, marketplaces will also have to disclose the importer’s details and country of origin.

Consumer data gets its own guardrail. Marketplace entities will not be permitted to use consumer information for specified purposes without obtaining express and affirmative consent.

The government has also moved to tackle bundled charges. Marketplace e-commerce entities cannot collect bundled fees for services unrelated to the e-commerce platform, although loyalty or membership programmes are exempted from this restriction.

The amendments expand the Consumer Protection (E-Commerce) Rules, 2020, introduced under the Consumer Protection Act, 2019 to address unfair trade practices in digital marketplaces.

While the government has described the changes as an effort to strengthen consumer protection while maintaining a balanced approach to Ease of Doing Business, the practical impact could be felt across the online shopping journey from what appears first in search results to how a discount is displayed and what information a buyer sees before clicking ‘buy’.

E-commerce companies now have until January 1, 2027 to update their systems, disclosures and compliance processes before the new rules take effect.