Government Tightens E-Commerce Rules on Discounts

India’s Department of Consumer Affairs notified the Consumer Protection (E-Commerce) (Amendment) Rules, 2026 on 10 September 2026. The amended rules will replace the Consumer Protection (E-Commerce) Rules, 2020 from 1 January 2027 and apply to e-commerce marketplaces and other online platforms operating in India.

Discount Display and Prior Price

The amended rules require platforms that display discounts to also show the “prior price”. The prior price is defined as the lowest price at which the item was offered during the preceding 30 days. This provision applies to online listings that present reduced prices to consumers.

Search Results and Sponsored Listings

The revised framework prohibits manipulation of search results that can mislead users or reduce the direct relevance of a consumer’s query. E-commerce marketplaces must also label paid or sponsored listings clearly and prominently so that they remain distinct from organic search results.

Compliance, Consent and Consumer Grievances

The rules require e-commerce entities to follow the 2023 guidelines on dark patterns, conduct an annual self-audit, and display a certificate of compliance prominently. They also bar the use of consumer information without explicit consent and prohibit bundled fees for unrelated services from 1 January 2027.

Important Facts for Exams

• The Consumer Protection Act, 2019 provides the legal basis for consumer protection rules in India.
• Dark patterns are deceptive design practices used in digital interfaces to influence consumer choices.
• The National Consumer Helpline is a grievance redressal platform for consumer complaints in India.
• E-commerce marketplaces are digital platforms that connect buyers and sellers without necessarily owning the goods sold.

Consumer Protection in Digital Markets

The Consumer Protection (E-Commerce) Rules, 2020 were framed to regulate online marketplaces, sellers and service providers in India. The 2026 amendment adds disclosure, consent and labelling requirements for discount pricing, search ranking and sponsored content.

Grievance Data and Regulatory Context

The National Consumer Helpline received 1,771,622 grievances in 2025, and 511,196 complaints, or 29%, were linked to the e-commerce sector. Nidhi Khare is the Secretary of the Department of Consumer Affairs.