India e-commerce regulatory amendments

The Indian government has introduced amendments to the Consumer Protection (E-Commerce) Rules to combat deceptive digital marketplace practices. Scheduled to take effect on January 1, 2027, the regulations aim to increase transparency regarding pricing, search results, and consumer data.

To prevent fake discounts, platforms must disclose the ‘prior price’—defined as the lowest price offered during the previous 30 days—whenever a discount is advertised. The rules also target ‘dark patterns,’ which are manipulative design choices used to influence consumer behavior, and require companies to conduct annual compliance self-audits.

Regarding search transparency, the amendments expand the definition of ‘ranking’ to include algorithmic and AI-driven mechanisms. This ensures that sponsored content is clearly labeled and not presented as organic results. Additionally, the rules mandate improved grievance redressal through partnerships with the National Consumer Helpline and introduce sector-specific consent requirements for consumer data usage in alignment with the Digital Personal Data Protection Act, 2023.