New e-commerce rules: What changes for your online shopping

Recent updates to India's e-commerce rules will impact online shopping experiences. The Department of Consumer Affairs amended the Consumer Protection (E-Commerce) Rules, 2020 in preparation for regulations to take effect on January 1, 2027. These changes aim to enhance consumer protection and promote transparency within the e-commerce sector.

Key changes include the requirement to display both the reduced price and the prior price whenever a discount is announced. The prior price refers to the lowest price at which a product or service was offered in the 30 days preceding the discount announcement. This allows shoppers to better assess the value of the discount being offered.

E-commerce platforms are also prohibited from manipulating search results to mislead users or affect the relevance of search results. This regulation ensures that search rankings accurately reflect a product's relevance to a user's search query, rather than being influenced by the platform's interests.

Paid or sponsored listings must be clearly marked, allowing consumers to distinguish between organic search results and advertisements. Platforms are required to audit themselves for "dark patterns", design techniques that manipulate users into making unintended choices. Examples include false urgency, basket sneaking, and hiding important information.

Consumers will receive a copy of their complaint from the e-commerce entity's grievance officer. Additionally, platforms must connect with the National Consumer Helpline to integrate more closely with the national consumer grievance-redressal mechanism.

Marketplace e-commerce entities cannot collect bundled fees for unrelated services, except in the case of loyalty or membership programs. For imported goods, platforms must disclose the importer's name and details, as well as the product's country of origin. Lastly, consumer data cannot be freely used for certain purposes without the consumer's explicit consent. The new rules collectively aim to improve transparency, protect consumers, and maintain a balanced regulatory framework for the e-commerce sector.