India Tightens E-commerce Rules Ahead of Festive Season

India's government has strengthened rules for e-commerce, set to take effect in January 2027. The new Consumer Protection (E-Commerce) (Amendment) Rules 2026 will replace the 2020 regulations. The amendments aim to enhance transparency and fortify provisions related to consumer grievances, sponsored listings, and seller disclosures.

The government mandates all e-commerce platforms to become convergence partners with the National Consumer Helpline (NCH) to facilitate quicker and amicable resolution of customer complaints. The new regime prohibits online marketplaces from manipulating search results in a misleading manner and requires clear identification of sponsored listings. When announcing price reductions, platforms must display both the discounted price and the prior price, defined as the lowest price offered in the preceding 30 days.

Furthermore, platforms are barred from using consumer data without express consent and from collecting bundled fees for non-e-commerce related services, excluding loyalty or membership programs. Details of importers and country of origin will now be mandatory for imported goods.

The new norms come into effect before India's busy festive season, a period that typically sees an increase in e-commerce-related complaints. In 2025, over 5.1 lakh complaints were registered against e-commerce and quick commerce platforms on the National Consumer Helpline, with Flipkart, Amazon, and Meesho receiving the majority. The government has previously taken action against deceptive practices, imposing penalties on companies for such violations.