Government introduces new rules for online trade to combat false discounts
Read more
Aaj Tak
www.aajtak.in

Government introduces new rules for online trade to combat false discounts

Many consumers on online platforms are promised large discounts, sometimes up to 80 percent. However, it turns out that the offered deal is not as profitable as advertised. In this regard, the government is preparing to introduce new regulations that should limit misleading offers from e-commerce companies.

According to the new rules, the government intends to increase the responsibility of companies towards online platforms regarding information on prices, discounts, search results, complaints, and product characteristics.

According to PTI, the government has amended the Consumer Protection Rules (e-commerce) of 2020. These rules were originally developed under the Consumer Protection Law of 2019.

The goal of these revised rules is to ensure transparency in the e-commerce sector and strengthen consumer interests. The new provisions will come into force on January 1, 2027. After this date, e-commerce platforms will be required to indicate not only attractive offers but also certain important details.

The most significant changes concern pricing and discounts in online shopping. When displaying a price reduction or discount on any item, the e-commerce company must indicate both the reduced price and the previous price of the item. The previous price is the cost at which the item was sold on that online platform during the last 30 days. Thus, attempts to create the appearance of a large discount by artificially inflating the old price will be ineffective, and buyers will be able to easily understand the size of their savings.

The government has also tightened requirements for search engines on e-commerce platforms. Companies will not be able to alter search results in a way that misleads the customer or influences the choice based on a query. Furthermore, sponsored placements will have clear identification, and this must be done explicitly. The buyer must understand which product is a regular search result and which one is promoted for a fee.

The government is also closely monitoring 'dark patterns' on online platforms—methods aimed at pushing the customer toward a specific choice or influencing their preferences. E-commerce companies will have to comply with the guidelines related to 'Dark Patterns, 2023'. Moreover, companies must conduct an annual self-audit and provide a certificate of conformity confirming the platform's compliance with the established rules.

The government is also working to strengthen the consumer complaint handling system. Every e-commerce entity must become a partner in the convergence process of the National Hotline for Consumer Protection. According to government data, in 2025, the National Hotline for Consumer Protection received a total of 1,771,622 complaints, about 29 percent of which, or 511,196 complaints, concerned the e-commerce sector. Now, if a client files a complaint, they must receive a copy of that complaint registered by the claims review officer. This ensures the client has an official record of their appeal.

Companies selling goods on e-commerce platforms are also obliged to provide buyers with more information. For products, details such as 'Best before' or 'Use by' must be indicated. It is also required to clearly state the terms regarding returns, refunds, warranty, delivery, and payment. If the item is imported, information about the importer and country of origin must be provided.

Popular