Centre tightens e-commerce sales rules, puts ‘fake’ discounts on watch

New Delhi: The government has made it compulsory for ecommerce companies to display both the reduced price and the prior price when offering discounts, and clearly identify sponsored listings under the amended Consumer Protection (E-Commerce) Rules, 2020. The amended rules, notified under the Consumer Protection Act, 2019, will come into force on January 1, 2027, the department of consumer affairs said on Thursday.

The new rules bar ecommerce platforms from manipulating search results. They must also strengthen grievance redressal mechanisms and compulsorily join the convergence process of the National Consumer Helpline (NCH), which is run by the department of consumer affairs.

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The move comes amid a sharp increase in consumer complaints against online platforms.

About 511,000, or 29%, of the more than 1.77 million grievances that the NCH received in 2025 were related to the ecommerce sector, according to the government.

Under the new rules, where a discount or price reduction is advertised, platforms must display the reduced price alongside the "prior price", defined as the lowest price at which the product or service was offered in the preceding 30 days. The change is aimed at curbing practices where sellers inflate a reference price before advertising what appears to be a steep discount.

Platforms will be prohibited from manipulating search results in a way that misleads consumers or reduces the relevance of results to their search query. Paid or sponsored listings will have to carry clear and prominent disclosures.

The amendments tighten rules around dark patterns that push consumers to buy things they may not need. Ecommerce companies will have to comply with the government's 2023 guidelines on dark patterns, conduct a yearly self-audit and prominently display a compliance certificate.

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Marketplace platforms will also have to provide consumers with key seller and product information, including best-before or use-before dates, return and refund policies, warranty, delivery and payment details.

The amended rules further restrict the use of consumer information for specified purposes without express and affirmative consent and bar platforms from collecting bundled fees for services unrelated to the platform, barring specified exceptions for loyalty or membership programmes.