Centre tightens e-commerce rules on fake discounts

The government has introduced stricter regulations for e-commerce companies, requiring them to display both the discounted price and the original price when offering deals. Additionally, sponsored listings must be clearly identified. These amended Consumer Protection (E-Commerce) Rules, 2020, set to take effect on January 1, 2027, aim to combat the growing number of consumer complaints against online platforms.

Presently, 29% of the over 1.77 million grievances received by the National Consumer Helpline (NCH) in 2025 pertain to e-commerce. The new rules prohibit ecommerce platforms from manipulating search results to mislead consumers or reduce the relevance of search results. They also mandate clear disclosures for sponsored listings and compliance with the 2023 guidelines on dark patterns, which are deceptive tactics used to push consumers into purchasing unnecessary products.

Furthermore, platforms must provide key seller and product information, including return and refund policies, to enhance transparency and protect consumer rights.