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Economy, business and finance
Mint Explainer | India has new rules for online shopping. Will consumers truly benefit?
New rules taking effect January 2027 target discount claims, search rankings, sponsored listings and dark patterns on e-commerce platforms.
Almost 30% of complaints received by India’s National Consumer Helpline (NCH) in 2025 were related to e-commerce. With online shoppers expected to rise from about 300 million now to more than 420 million by 2030, according to Boston Consulting Group, concerns are also mounting over how platforms influence what consumers see, pay for and buy.
The Department of Consumer Affairs has responded with amended e-commerce rules tightening requirements around discounts, search rankings, sponsored listings and platform design. Will that make online shopping safer and better for consumers? Mint explains:
What has India changed in e-commerce rules?
The Centre this month introduced the Consumer Protection (E-Commerce) (Amendment) Rules, 2026, amending the 2020 rules, with the changes effective 1 January 2027.
When announcing a price reduction, platforms must display the lowest price at which the product was offered in the preceding 30 days. They must clearly identify sponsored listings, and cannot manipulate search results to mislead users or make results less relevant to their queries.
Platforms must comply with the government's 2023 dark-pattern guidelines and conduct an annual self-audit, with a compliance certificate displayed prominently.
Marketplace platforms must also provide more seller and product information, including return and refund terms, warranties, delivery details and, for imported products, the importer and country of origin. They must participate in the NCH's convergence process and provide consumers copies of complaints recorded by their grievance officers.
Why target discounts, search rankings and sponsored listings?
These practices can influence what consumers buy and how much they pay. A discount can appear larger depending on the reference price, while a product's position in search results can determine whether a consumer sees or buys it, particularly when sponsored listings are not clearly identified.
A product appearing first could be there because it is relevant, because a seller paid for visibility or because of other ranking factors. Similarly, a displayed discount can anchor consumers to an earlier price without showing whether that price was representative.
The rules seek to make these behind-the-scenes influences more visible, giving consumers more information about prices, advertising and rankings.
What are dark patterns?
Dark patterns are design practices intended to manipulate consumers through a platform's interface or purchase flow. These include false urgency, adding products to a basket without clear consent, revealing fees only at checkout, making cancellation difficult, disguising advertising and hiding charges. India identified 13 such practices under its 2023 guidelines.
The consumer protection authority has already acted against some. In a Rajya Sabha response this August, Minister of State for Consumer Affairs B.L. Verma cited action taken against multiple platforms, including a ₹7 lakh fine on quick-commerce platform Zepto after it was found to reveal handling charges only at checkout and to add a membership without consent.
The new rules make compliance with the 2023 guidelines a direct requirement, alongside annual self-audits and prominent display of a compliance certificate.
How could this change e-commerce?
Much of the impact will be behind the screen. Platforms may need to track prices more closely across millions of products and sellers, retain historical data to establish the lowest price over 30 days and modify search-ranking algorithms.
The pricing rules could also alter promotional strategies. A short-lived discount on one marketplace could affect the reference price for a later promotion. Coupons, bank offers, membership benefits and other incentives could become harder to structure when the price actually paid differs from the listed selling price.
That could eventually affect how platforms compete and differentiate, particularly if discounts and pricing differences become less central to that competition.
Will consumers actually benefit?
The rules aim to give consumers more information while restricting manipulative design. That could give them greater control over purchasing decisions, but the outcome will depend heavily on enforcement.
The Central Consumer Protection Authority already has powers to investigate unfair trade practices and impose penalties, and its action on dark patterns shows it is using those powers. Search rankings could be harder to police. Platforms will have to disclose the main parameters determining rankings and their relative importance, but their algorithms remain commercially sensitive. Regulators will still have to distinguish legitimate ranking decisions from manipulation.
Greater transparency also does not necessarily mean lower prices. Consumers may make better-informed purchases without necessarily paying less.