India to tighten e-commerce rules to curb fake discounts

The Indian government has amended the Consumer Protection (E-Commerce) Rules, 2020, to combat deceptive practices on online marketplaces. The new regulations, set to take effect on January 1, 2027, aim to increase transparency and protect consumers from misleading tactics such as fake discounts and dark patterns.

Under the amended framework, e-commerce platforms must disclose the ‘prior price’—the lowest price offered during the previous 30 days—whenever a discount is advertised. This measure is designed to ensure that price reductions are genuine. Additionally, platforms are prohibited from manipulating search results and must clearly label any sponsored content to prevent consumer confusion.

The rules also target ‘dark patterns,’ which are manipulative design choices used to influence consumer behavior. Companies will be required to conduct annual self-audits and display compliance certificates. Furthermore, marketplaces must provide comprehensive product information, including expiry dates, return policies, and country of origin for imported goods. These changes follow a significant rise in consumer grievances, with nearly one-third of the 1.77 million complaints received in 2025 pertaining to the e-commerce sector.