E-commerce has changed more than the way goods and services are bought and sold. Digital platforms influence the choices available to consumers through search results, rankings, recommendations, sponsored placements, pricing displays and the design of the interface through which a transaction is completed. The information placed before a consumer, the order in which it appears and the way commercial incentives are presented affects a purchasing decision. Consumer protection now extends beyond ensuring that basic product and seller information is available, requiring transparency in mechanisms that shape consumer choice.
The Consumer Protection (E-Commerce) Rules, 2020 established the principal regulatory structure for e-commerce entities in India by laying down obligations relating to disclosures, grievance redressal, unfair trade practices and the responsibilities of marketplace entities and sellers. However, areas such as algorithmic ranking, sponsored listings, reference pricing, and manipulative interface design have become more relevant. These mechanisms have also created a need to ensure that consumers can distinguish commercial promotion from organic results and understand the basis on which products, services, and sellers receive visibility on a platform.
Against this background, the Department of Consumer Affairs notified the Consumer Protection (E-Commerce) (Amendment) Rules, 2026 through G.S.R. 789(E) dated September 9, 2026, introducing a wider set of transparency, grievance redressal and consumer-protection obligations for e-commerce entities operating in India. The amendments modify the Consumer Protection (E-Commerce) Rules, 2020 and will come into force on January 1, 2027. The changes are intended to address emerging consumer issues arising from evolving business models and digital practices, alongside maintaining a balanced regulatory approach for the e-commerce sector.
Ranking and Platform Visibility
One of the first changes is to the definition of “ranking” under Rule 3. The 2020 Rules defined ranking with reference to the relative prominence or relevance given to goods or services offered through a marketplace. The amended definition extends the concept to the relative prominence or relevance given to sellers on the platform. The change recognises that visibility within an online marketplace can be influenced not only by the positioning of individual products or services but also by the prominence given to specific sellers.
Platforms are also required to explain the main parameters that are most substantial in determining the ranking of goods or sellers individually or collectively. These parameters must be stated in descending order of importance, along with information on their relative significance, in an easily and publicly available description presented in plain and intelligible language. However, this requirement is not a mandatory disclosure of the underlying algorithm or source code, but requires platforms to provide consumers with important information about the principal factors influencing visibility on the marketplace.
Grievance Redressal and Consumer-Facing Disclosures
The amendments also expand the general duties of e-commerce entities under Rule 4. Every entity must provide its legal name, principal geographic address, addresses of its branches, website details and the contact information of its customer care and grievance officers. The existing requirement for a grievance officer to acknowledge a consumer complaint within 48 hours and redress it within 1 month continues, with the additional obligation to provide the complainant with a copy of the complaint as recorded by the grievance officer. Every e-commerce entity must also become a partner in the convergence process of the National Consumer Helpline, creating a closer link between platform-level grievance redressal and the national consumer grievance mechanism.
Search Results and Sponsored Listings
The amendment also addresses how consumers find search results and commercial listings. E-commerce entities are prohibited from manipulating search results or search indexes in a way that misleads users or adversely affects the relevance of the results to a user’s search query. Sponsored listings of goods or services must also be identified through clear and prominent disclosures. This seeks to enable consumers to distinguish between listings appearing because of their relevance to a search and those receiving visibility because of a commercial arrangement.
Price Reduction Claims
Where an e-commerce entity or seller announces a reduction in the price of goods or services, both the reduced price and the prior price must be displayed. The “prior price” has been defined as the lowest price at which the goods or services were offered during the 30 days preceding the announcement of the reduction. The requirement creates a defined benchmark for discount claims and addresses situations where an inflated reference price may give consumers an inaccurate impression of the extent of a discount.
Dark Patterns and Annual Compliance Review
Dark patterns have also been incorporated into the e-commerce compliance regime. Every e-commerce entity must comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023, undertake a yearly self-audit to verify that its platform is free from dark patterns and clearly display a certificate of such compliance. This makes examination of user journeys, consent mechanisms, subscription processes and other consumer-facing interface practices a recurring compliance exercise for e-commerce businesses.
Seller Identification and Pre-Purchase Information
The amendments also improve seller identification and pre-purchase disclosures. Marketplace entities must make specified information about sellers available to consumers, including business details, contact information, ratings or aggregated feedback and other information necessary to enable an informed purchase decision. Information relating to returns, refunds, exchanges, warranties, guarantees, delivery, shipment, payment methods, grievance redressal and best-before or use-before dates must also be provided, as applicable. After completion of a purchase, a consumer may seek additional information regarding the seller in writing where such information is necessary for effective dispute resolution.
Use of Consumer Information and Bundled Charges
Consumer information cannot be used for specified sales or promotional activities involving sellers bearing a name or brand common with that of the marketplace, or sellers promoted as being associated with it, without the express and affirmative consent of the consumers to whom the information relates. Marketplace entities are also prohibited from collecting bundled fees for services unrelated to the e-commerce platform, subject to the stated exception for loyalty or membership programmes and benefits, services, offers or incentives associated with such programmes.
Obligations for Sellers and Imported Goods
Sellers operating through marketplace platforms must provide information required for an informed pre-purchase decision, including country of origin, best-before or use-before dates, return and refund terms, warranty and guarantee information, delivery and shipment details, return-shipping costs and available modes of payment. For imported goods, importer details and the full name of the country of origin must also be disclosed in accordance with the applicable legal metrology requirements. Comparable disclosure requirements would apply to inventory e-commerce entities.
Transparency in Invoices
The amended Rules also require greater transparency in transactional documentation by mandating that the seller’s name appear clearly and prominently on the invoice, in the same font size as the e-commerce entity’s name. This is especially relevant in marketplace transactions, where the platform’s branding may be far more visible to consumers than the seller’s identity.
Effects of the Amended Framework
The 2026 amendments extend e-commerce regulation beyond conventional seller and product disclosures to the mechanisms that structure consumer choices online. Search visibility, sponsored content, price representations, use of consumer information and interface design now form an express part of the compliance landscape. With the amended Rules taking effect from January 1, 2027, e-commerce entities, marketplace operators and sellers will need to examine their ranking practices, pricing systems, consent architecture, seller disclosures, grievance procedures, invoices and dark-pattern compliance processes to ensure that their digital practices meet the revised requirements.
Authors: Manisha Singh and Shivi Gupta