E-commerce firms brought under tighter regulation, Pg10

Key Highlights:

• The Union Consumer Affairs Department has notified new rules to tighten regulations for e-commerce platforms, effective from January 1, 2027.
• These Consumer Protection (E-Commerce) (Amendment) Rules, 2026 aim to protect consumers from emerging concerns like dark patterns and bundled fees.
• E-commerce entities must disclose details such as the importer and country of origin for imported goods.
• Platforms are mandated to provide comprehensive company and customer care information, including details of a grievance officer.
• The grievance officer must acknowledge complaints within 48 hours and resolve them within one month.

E-Commerce Rules.jpg

Detailed Insights:

• The Consumer Protection (E-Commerce) (Amendment) Rules, 2026 amend the original Consumer Protection (E-Commerce) Rules, 2020, both framed under the Consumer Protection Act, 2019.
• The new rules prohibit e-commerce entities from manipulating search results and mandate clear identification of sponsored listings.
• Platforms are required to display both the reduced price and the "prior price" (lowest price in the preceding 30 days) when announcing price reductions.
• E-commerce entities are barred from using consumer information for specified purposes without explicit and affirmative consent.
• Compliance with the Guidelines for Prevention and Regulation of Dark Patterns, 2023 is now mandatory, including an annual self-audit and display of a compliance certificate.
• Every e-commerce entity must integrate with the National Consumer Helpline (NCH) to streamline complaint handling.

Key Concepts Involved:

• Dark Patterns: Deceptive design elements in digital interfaces that manipulate users into making unintended choices, often benefiting the platform.
• Bundled Fees: Charges collected by e-commerce platforms for services unrelated to the primary transaction, now largely prohibited except for loyalty programs.
• Grievance Officer: A designated official on e-commerce platforms responsible for acknowledging and redressing consumer complaints within specified timelines.