Get in Touch

New Rules on Discounts and Sponsored Listings: What Indian E-Commerce Websites Need to Change

New Rules for Indian E-Commerce

India’s Department of Consumer Affairs notified the Consumer Protection (E-Commerce) (Amendment) Rules, 2026 on September 9, 2026. These rules come into force on January 1, 2027, and they require meaningful changes to how e-commerce websites display prices, discounts, search results, and paid placements.

This is not a minor compliance update. For any business running an ecommerce website company in India, or any brand investing in a custom ecommerce web design service, these rules directly affect how the front-end of the site must function. The January 2027 deadline is closer than it appears, and the scope of changes is broad enough that websites built without these requirements in mind will need structural rework, not just a copy edit.

Why the Government Moved to Amend the 2020 E-Commerce Rules

The original Consumer Protection (E-Commerce) Rules were introduced in 2020. In the five years since, consumer grievances in the online shopping space have grown substantially. The National Consumer Helpline received over 1.77 million grievances in 2025 alone, of which approximately 29 percent, more than 511,000 complaints, were specifically related to e-commerce. The complaints pointed to recurring patterns: fake discounts where prices were inflated before being “reduced,” paid listings that looked identical to organic results, deceptive design elements that manipulated purchase decisions, and insufficient disclosure of seller and product information.

The 2026 amendment is a direct response to this track record. It moves from a framework that broadly prohibits unfair trade practices to one that imposes specific, enforceable disclosure requirements on the website interface itself.

The Discount Display Rule That Ends Inflated Reference Pricing

One of the most operationally significant changes involves how discounts are displayed. The rules define “prior price” as the lowest price charged for the goods or services in the 30 days before the announcement of a discount. 

What this means in practice is direct: when a product is shown at a reduced price, the website must also display the prior price as defined above. The intent is to prevent the widely practiced tactic of temporarily raising a product’s price and then advertising a large percentage discount against that inflated baseline. Under the new rules, a seller who raises a price on day one and then shows a 40 percent discount on day five will have to show the actual 30-day lowest price as the reference, which may make the claimed discount much smaller or require recalculating it entirely.

For e-commerce businesses, this changes the architecture of product listing pages. The prior price needs to be calculated, stored, and displayed dynamically. Sites that rely on static or manually entered reference prices will need backend logic to track and display the 30-day minimum automatically. This is a technical requirement, not just a policy one.

Sponsored Listings Must Be Clearly Identified

Sponsored listings must be clearly and prominently identified, while marketplaces are required to explain the principal parameters determining product and seller rankings and their relative importance.

Currently, many Indian e-commerce platforms display paid placements in ways that are visually similar to organic results. A small grey label that says “sponsored” buried in a corner does not meet the “clear and prominent” standard the amended rules require. The rule also prohibits manipulating search results or indexes in a manner that misleads users having regard to their search query.

For the website interface, this means: sponsored products and listings need labels that are unmistakably distinct from organic results, both visually and in terms of position and size. For marketplaces that have built their product page and search result designs without this distinction as a priority, this will require interface redesign rather than a simple label addition.

Dark Pattern Compliance Becomes Mandatory

The amended rules make compliance with the Guidelines for Prevention and Regulation of Dark Patterns, 2023, mandatory. These guidelines cover interface design tactics that manipulate consumer decision-making, including false urgency signals, hidden charges that appear only at checkout, subscription traps, and confirm-shaming language used on opt-out buttons. 

Beyond general compliance, the rules require e-commerce entities to conduct an annual self-audit and display a certificate of compliance prominently on the platform.

This means the website itself needs a compliance display mechanism. It is not sufficient to be compliant; the site must visibly demonstrate it. This has direct implications for footer design, trust signals, and the overall UX architecture of the platform.

Additional Disclosure Requirements That Affect Product Pages

Several other amendments affect what must appear on product listing pages and at checkout:

Marketplace entities must disclose key seller and product information, including return and refund policies, warranties, delivery and payment details. For imported goods, they must also disclose the country of origin and importer details.

For product pages, this means country of origin and importer information needs to be a standard visible field for all imported goods, not just an optional attribute that some sellers fill in and others skip. This requires both the backend data structure and the front-end display template to accommodate these fields consistently.

The amended rules further require express consumer consent for specified uses of personal information and prohibit bundled fees for unrelated services, subject to specified exceptions.

Any platform that currently bundles subscription fees or platform service charges with the transaction without explicit disclosure and consent needs to revisit its checkout flow.

What E-Commerce Businesses Should Do Before January 2027

The deadline is January 1, 2027. That gives businesses roughly three months from the time of notification to audit and update their platforms. The practical scope of work breaks down into four areas.

Backend logic for pricing: Build or update systems to track and store the 30-day minimum price for every product, and surface that data automatically on product listings whenever a discount is shown.

Interface redesign for sponsored content: Audit current search result and listing pages for how paid placements are visually differentiated from organic results. Where the distinction is not clear and prominent, redesign the relevant UI components.

Dark pattern audit: Review the entire customer journey from landing page to checkout confirmation against the 2023 dark pattern guidelines. Identify any design elements that manipulate decision-making rather than inform it, and remove or revise them.

Disclosure infrastructure: Add mandatory fields for country of origin, importer details, seller information, warranties, and return policies. Build the checkout flow to capture express consent for data use where required.

Why This Is Also a Design and Development Brief, Not Just a Legal One

The amendments are written as regulatory requirements, but their implementation lives in the design and code of the website. A legal team can map the rules and a compliance officer can audit them, but the actual changes need to happen in the product interface, the database schema, the search result templates, and the checkout flow.

For businesses that built their platform on a generic template or an off-the-shelf marketplace solution, the depth of customisation these requirements demand may exceed what a surface-level update can deliver. Platforms that were built with customisation as a design principle are better positioned to absorb these changes efficiently.

Summit Technology works with e-commerce businesses to build and update platforms that can accommodate regulatory requirements as part of the underlying architecture, rather than as retrofitted compliance patches added on top of a rigid system. Whether the need is a pricing logic update, a sponsored content labelling overhaul, or a full checkout flow redesign, treating these amendments as a technical project brief rather than a legal checkbox produces more durable results.

Conclusion

The Consumer Protection (E-Commerce) (Amendment) Rules, 2026 reshape how Indian e-commerce websites must handle discount display, sponsored listings, dark patterns, and product disclosures. The rules take effect on January 1, 2027, and the implementation work touches every layer of the platform, from backend data systems to front-end UI design.

The businesses best positioned to meet this deadline are those that begin the technical audit now and treat the changes as a structured development project rather than a last-minute compliance fix. For any business working with an ecommerce website company in India or investing in a custom ecommerce web design service, this is the moment to ensure those partners understand what the new rules require at the code and design level, not just the policy level.

Summit Technology helps Indian e-commerce businesses build platforms that meet these requirements without disrupting the commercial experience the platform was built to deliver.

Scroll to Top