E-commerce rules tightened: Search manipulation, hidden fees and misleading discounts face new curbs

New Delhi: The government has tightened e-commerce rules to strengthen consumer protection and bring greater transparency to online marketplaces, with new provisions covering search results, sponsored listings, discounts, dark patterns, seller disclosures and consumer data.

The Consumer Protection (E-Commerce) (Amendment) Rules, 2026, notified by the Department of Consumer Affairs, will come into force from January 1, 2027.

The amendments seek to address emerging concerns in the digital marketplace while maintaining a balance between consumer protection and ease of doing business.

E-commerce platforms must integrate with NCH

A key change requires every e-commerce entity to become a partner in the convergence process of the National Consumer Helpline (NCH), strengthening the link between online platforms and the national grievance redressal mechanism.

The move comes amid a significant rise in e-commerce-related complaints. In 2025, the NCH received 17,71,622 grievances, of which 5,11,196, or around 29%, were related to e-commerce.

Platforms will also have to provide consumers with a copy of complaints recorded by their grievance officers.

Search rankings, sponsored listings under scrutiny

The amended rules prohibit e-commerce entities from manipulating search results in ways that mislead users or compromise the relevance of results to their queries.

Sponsored listings will have to be clearly and prominently identified, making it easier for consumers to distinguish paid placements from organic search results.

The rules also introduce greater transparency around discounts. When a price reduction is advertised, platforms must display both the reduced price and the prior price. The prior price will mean the lowest price offered during the preceding 30 days.

Dark patterns, seller disclosures tightened

E-commerce companies will have to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023, conduct an annual self-audit and prominently display a compliance certificate.

Marketplace platforms will also be required to provide important product and seller information, including best-before dates, return and refund policies, warranty, delivery and payment details.

Consumer information cannot be used for specified purposes without express and affirmative consent.

The rules further prohibit marketplaces from collecting bundled fees for services unrelated to their platform, subject to an exception for loyalty or membership programmes.

For imported products, country of origin and importer details will have to be disclosed.

The government said the amendments aim to create a more transparent, accountable and consumer-centric digital marketplace while giving businesses greater clarity on their regulatory responsibilities.