New ecommerce rules could add compliance load for small sellers, say industry experts
The new disclosure parameters will be difficult to met by small and unorganised players while it may favour the larger entities.
A new set of ecommerce regulations, aimed at improving consumer protection and transparency, has raised concerns among industry experts regarding the potential compliance burden for small sellers and micro, small, and medium enterprises (MSMEs). These regulations, effective from January 1, 2027, include requirements such as disclosure of ranking parameters, prior price history for discount claims, and mandatory partnership with the National Consumer Helpline.
While the overarching goal of strengthening consumer rights is applauded, experts caution that certain provisions may prove challenging for smaller sellers to implement. Disclosure of ranking factors, in particular, could prove difficult for smaller or unorganized sellers due to the complexity of understanding and navigating the various parameters.
Similarly, the 30-day requirement to disclose the lowest price in a given time frame could impose an additional operational burden on individual sellers who must track and maintain accurate price histories.
The industry also supports the government's commitment to making the ecommerce sector more accountable, as evidenced by the mandatory annual self-audit for dark pattern compliance. However, the challenge lies in ensuring that the burden of compliance does not inadvertently fall on the small sellers and merchants who are already operating with limited resources for compliance.
The aim should be to streamline the process and minimize the compliance load on these sellers, thereby enabling them to focus on their core business functions within a more conducive business environment.
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