That giant “70% OFF” label on an online shopping app may soon have to work much harder to prove it is real.
The Indian government has amended the Consumer Protection (E-Commerce) Rules, 2020, introducing tighter requirements for discounts, search results, sponsored listings, consumer complaints and deceptive online design.
The new framework will come into force on January 1, 2027.
A discount needs a real reference price
When an e-commerce platform displays a reduced price, it will also have to show a prior price.
The prior price is defined as the lowest price at which the item was offered during the 30 days before the discount was announced. That matters because inflated “original prices” can make ordinary selling prices look like spectacular bargains.
Search results are also in focus
Online marketplaces will not be allowed to manipulate search results in ways that mislead users or make results less relevant to what a customer actually searched for.
Sponsored listings also face clearer disclosure requirements. That could make it easier for shoppers to distinguish between “this is the best match” and “this seller paid to appear here.”
What are dark patterns?
Dark patterns are interface tricks designed to push users into decisions they may not otherwise make. Examples can include creating artificial urgency, hiding cancellation options, pre-selecting paid additions or making one option visually much harder to refuse.
Complaint handling will become more formal
E-commerce companies will also have stronger obligations around consumer grievance handling, including participation in the National Consumer Helpline convergence process for covered entities.
Why this matters
India’s online shopping economy is enormous. A countdown timer, an exaggerated discount or a sponsored result presented as an organic recommendation can influence millions of buying decisions.
That is why regulation is moving beyond simply asking whether a product was delivered. The new question is: Was the customer manipulated into buying it?
Source: PIB