India amends e-commerce rules to enhance consumer protection

The Indian Department of Consumer Affairs has notified the Consumer Protection (E-Commerce) (Amendment) Rules, 2026, which are set to take effect on January 1, 2027. These amendments aim to increase transparency and consumer protection within the digital marketplace by tightening regulations on pricing, search rankings, and seller disclosures.

Key provisions include new rules for price reductions, requiring platforms to display both the reduced price and the lowest price offered in the preceding 30 days to prevent artificial price inflation. The rules also expand the definition of ‘ranking’ to include algorithmic and AI-driven mechanisms, ensuring that sponsored listings are clearly labeled and not misleadingly presented as organic results.

Furthermore, the amendment formally integrates guidelines to prevent ‘dark patterns’ and requires e-commerce entities to conduct annual compliance self-audits. To improve grievance redressal, platforms must now partner with the National Consumer Helpline and provide complainants with a formal copy of their recorded grievances. These changes also introduce sector-specific consent requirements for consumer data usage, which must be implemented alongside the Digital Personal Data Protection Act, 2023.