The Indian government is now cracking down on the practice of misleading consumers with fake discounts on e-commerce platforms. The government is introducing new regulations that will improve transparency for customers. Let's explore these in detail.
People will get relief from fake discounts
Many people are promised huge discounts on online platforms, including up to 80% off. Ultimately, they discover that the deals aren't as cheap as advertised. The government is implementing new regulations that will curb misleading offers from e-commerce companies.
Under the new rules, the government is going to increase the accountability of companies regarding prices, discounts, search results, reports/complaints and product information on online platforms.
PTI reports that the government has amended the Consumer Protection (E-Commerce) Rules, 2020. These rules were enacted under the Consumer Protection Act, 2019.
According to the report, the revised rules aim to bring transparency to e-commerce businesses and strengthen customer interests.
The new rules will come into effect from January 1, 2027. After this, e-commerce platforms will have to mention some important details along with showing attractive deals.
Clear information about price and discount
The biggest change in online shopping is regarding pricing and discounts. When showing a price cut or discount on any item, e-commerce companies must also disclose the prior price along with the reduced price.
The prior price is essentially the price at which a product has been sold on an online platform within the past 30 days. Therefore, any attempt to inflate the previous price and offer a significant discount will be unsuccessful, and customers will be able to easily understand the savings they will receive.
Ban on arbitrariness in search results too
The government has also tightened regulations regarding the search systems of e-commerce platforms. Companies cannot alter search results in a way that misleads customers or influences the results of a search query.
Sponsored listings must also be clearly and prominently identified. Customers should be able to distinguish which products are regular search results and which are being highlighted as a paid promotion.
The government is also keeping an eye on dark patterns
Strict action is also being taken against dark patterns on online platforms that push customers towards a particular option or influence their choice.
E-commerce companies will be required to comply with the "Dark Patterns 2023" guidelines. Furthermore, they will be required to conduct annual self-audits and provide a compliance certificate to demonstrate that their platforms are complying with the regulations.
The customer will have a grievance record
The government has also prepared to strengthen the consumer complaints system. Every e-commerce entity will be required to participate in the convergence process of the National Consumer Helpline.
According to the government, the National Consumer Helpline received a total of 1,771,622 complaints in 2025. Of these, 511,196 complaints, or about 29 percent, were related to the e-commerce sector.
Now, if a customer files a complaint, they must provide the same copy of their complaint as recorded by the Grievance Officer. This will ensure the customer has an official record of their complaint.
It is necessary to provide complete details of the product
Companies selling goods on e-commerce platforms will also need to provide more information to customers. For products, information such as Best Before or Use Before will be required. Furthermore, conditions related to returns, refunds, warranties, delivery, and payment will need to be clearly stated. If the goods are imported, the importer's information and country of origin will also need to be disclosed.
