The Department of Consumer Affairs has amended the Consumer Protection (E-Commerce) Rules, 2020 to strengthen consumer protection norms, according to an official release issued on Thursday.
The amendments seek to address emerging consumer concerns while taking into account the need for Ease of Doing Business, with the government aiming to maintain a balance between protecting consumer interests and avoiding unnecessary regulatory burdens on e-commerce entities.
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A key provision requires every e-commerce entity to become a partner in the convergence process of the National Consumer Helpline (NCH). The move is aimed at strengthening the integration of e-commerce platforms with the national consumer grievance redressal mechanism.
The new rules will come into force from Jan. 1, 2027.
What Are The Key Amendments?
As per the amended rules, e-commerce entities will be required to provide a copy of the complaint as recorded by their grievance officer to the consumers.
The rules also prohibit e-commerce entities from manipulating search results in a way that misleads users or adversely affects the relevance of results to their search queries.
Platforms will also be required to provide clear and conspicuous disclosures for sponsored listings, helping consumers distinguish paid listings from ordinary search results.
The amendments also introduce greater transparency around price reductions. Whenever a price reduction is announced, both the reduced price and the prior price must be displayed. The prior price will mean the lowest price at which the goods or services were offered during the 30 days preceding the announcement.
New Rules On Dark Patterns
E-commerce entities will also have to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
They will be required to conduct a yearly self-audit and prominently display a certificate of compliance.
The amended Rules further require marketplace e-commerce entities to provide key information about sellers and products, including best before/use before dates, return and refund policies, warranty, delivery and payment details.
The objective is to enable consumers to make more informed purchasing decisions.
Restrictions On Consumer Data And Bundled Fees
Marketplace e-commerce entities will not be permitted to use consumer information for specified purposes without obtaining express and affirmative consent.
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The Rules also prohibit marketplace e-commerce entities from collecting bundled fees for services unrelated to the e-commerce platform, subject to the specified exception for loyalty or membership programmes.
For imported goods, e-commerce platforms will have to disclose importer details and the country of origin.
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