JSA Prism | Consumer Protection | September 2026

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E-Commerce rules are amended to strengthen consumer protection and promote transparency in the digital marketplace

The Department of Consumer Affairs, on September 9, 2026, has notified the Consumer Protection (E-Commerce) (Amendment) Rules, 2026[1] (“Amendment Rules”), amending the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”), issued under the Consumer Protection Act, 2019 (“CPA”). The Amendment Rules come into force from January 1, 2027. The amendments introduce a comprehensive set of provisions aimed at strengthening consumer protection in the digital marketplace, covering consumer grievance redressal, search result manipulation, sponsored listings, price reduction disclosures, dark patterns compliance, seller and product information, use of consumer data, bundled fees, imported goods disclosures, and mandatory partnership with the National Consumer Helpline (“NCH”).

 

Background

The E-Commerce Rules were notified in July 2020 under the CPA and provide the regulatory framework for the e-commerce sector. Since their notification, the evolution of business models, digital practices, and increasing volume of consumer grievances have prompted further regulatory intervention.

The Amendment Rules address these regulatory areas and introduce new obligations for platforms operating in India. The key amendments are summarised below.

 

Key amendments

  • Every e-commerce entity is now required to become a partner of NCH under the Central Government. This provision mandates the integration of e-commerce platforms with the national consumer grievance redressal mechanism to channel and track consumer complaints through a centralised system.
  • The Amendment Rules stipulate that every e-commerce entity must ensure that its grievance officer acknowledges receipt of any consumer complaint within 48 (forty-eight) hours, provides the complainant with a copy of the complaint as recorded by the grievance officer, and redresses the complaint within 1 (one) month from the date of receipt.
  • E-commerce entities are now barred from manipulating search results or search indexes based the user’s search query.
  • Every e-commerce entity must ensure that sponsored listings of products and services are distinctly identified with clear and prominent disclosures. This provision enables consumers to distinguish between organic search results and commercially promoted listings.
  • Where an e-commerce entity or seller announces a price reduction for any goods or services on its platform, it must display the reduced price along with the prior price. The ‘prior price’ is defined as the lowest price at which the goods or services were offered during the 30 (thirty) days preceding the announcement of the price reduction.
  • Every e-commerce entity must display the seller’s name prominently in its invoice, in the same font size as that of the e-commerce entity’s name. This will help ensure that consumers are aware of the identity of the actual seller, enabling consumers to direct grievances to the appropriate seller.
  • Every e-commerce entity is required to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023 and must conduct a yearly self-audit to ensure its platform is free from dark patterns. In addition to this, a certificate of compliance must be displayed prominently on the platform.
  • The definition of ‘ranking’ has been substituted to now mean the relative prominence or relevance given to sellers on the platform or to goods or services offered through a marketplace e-commerce entity, as presented, organised or communicated by such entity, irrespective of the technological means used.
  • Marketplace e-commerce entities must provide an explanation of the main parameters, in descending order of significance, which individually or collectively determine the ranking of goods or sellers on the platform, through an easily and publicly available description drafted in plain and intelligible language.
  • Marketplace e-commerce entities are now required to provide detailed seller information, including business name, geographic address, customer care number, website details, email address, and any rating or aggregated feedback about the seller. Product information must include country of origin, best before or use before date, return, refund, exchange, warranty and guarantee, delivery, shipment, cost of return shipping, modes of payment, and grievance redressal mechanism. Additionally, any identification number issued by the Central Government, including Goods and Services Tax Identification Number or Micro, Small and Medium Enterprises registration number, must be disclosed.
  • No marketplace e-commerce entity may use information collected by it for: (a) the sale of goods directly or indirectly by any seller bearing a brand or name common with that of the marketplace e-commerce entity; or (b) promoting or advertising any seller as being associated with the marketplace entity unless express and affirmative consent has been obtained from the relevant consumers.
  • Marketplace e-commerce entities are prohibited from collecting bundled fees from users for services unrelated to the e-commerce platform, subject to an exception for loyalty or membership programmes.
  • Where an e-commerce entity offers imported goods or services for sale, it is required mention the name and details of the importer and provide for identification of goods with the full name of the country of origin, as provided under the Legal Metrology (Packaged Commodities) Rules, 2011.

 

Conclusion

The amendments give e-commerce entities approximately 4 (four) months from notification to achieve full compliance. Entities should review their existing compliance frameworks against the amended provisions and prepare for implementation before January 1, 2027.

Key areas requiring immediate attention would be: (a) integration with the NCH convergence process; (b) implementation of clear sponsored listing disclosures; (c) restructuring price display mechanisms to comply with the prior price requirement; (d) conducting a self-audit on dark patterns and further obtaining a compliance certificate; and (e) reviewing data use practices to ensure compliance with the restrictions on consumer information.

 

This Prism has been prepared by:

 

Probir Roy Chowdhury
Partner

Nikhil George
Senior Associate

Aryaman Kumar
Associate

Ayush A Menon
Associate

 

For more details, please contact km@jsalaw.com.

 

[1]Published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification no. CG-DL-E-10092026-276125

 

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