No More Fake Discounts? Centre Tightens E-Commerce Rules for Online Shopping

The Union Ministry of Consumer Affairs, Food & Public Distribution has amended the Consumer Protection (E-Commerce) Rules to curb deceptive online sales tactics, unverified discounts, and search manipulation across digital marketplaces in India. The Consumer Protection (E-Commerce) (Amendment) Rules, 2026, were formally notified by the Department of Consumer Affairs and will come into force on January 1, 2027. Government officials stated that the draft aims to protect online shoppers from unfair business practices while balancing regulatory requirements for digital enterprises.

Under the updated framework, platforms are required to show the "prior price" alongside any discounted price. The "prior price" is defined as the lowest price at which the item was offered in the 30 days preceding the discount announcement. The rule targets misleading flash sales and artificial price markups before promotional discounts. VOKKA and Zepto Show How Quick Commerce Is Becoming a Launchpad for Occasion-Led Gifting.

Additionally, the rules strictly prohibit search result manipulation that distorts seller rankings or misleads consumers. Platforms must explicitly label sponsored products with prominent visual indicators. E-commerce sites must also adhere to the Guidelines for Prevention and Regulation of Dark Patterns (2023), conduct an annual self-audit, and publish a compliance certificate on their domain. Deceptive user interfaces, commonly known as dark patterns, include techniques like hidden fees (drip pricing), auto-adding items to carts (basket sneaking), confirm-shaming, and subscription traps designed to manipulate consumer choices.

The ministry noted that the National Consumer Helpline (NCH) logged 17,71,622 grievances in 2025, with e-commerce complaints accounting for approximately 29 percent (5,11,196 cases). To streamline dispute resolution, all registered e-commerce entities must integrate with the NCH grievance platform and automatically send formal complaint receipts to consumers.

Marketplaces will also face tighter transparency mandates for product listings. Sellers must state details regarding return policies, warranties, shelf life (best-before dates), payment terms, and delivery schedules. For imported inventory, the country of origin and importer details are mandatory. India's E-commerce Market to Hit USD 345 Bn by 2030; Gen Z, Tier-II, III Cities to Drive Growth: Report.

Furthermore, digital platforms are barred from collecting bundled fees for unrelated services—excluding official membership programs—and cannot share consumer data for unauthorized secondary purposes without explicit, affirmative consent.

(The above story first appeared on LatestLY on Sep 10, 2026 08:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).