India’s amended e-commerce rules could increase the compliance workload for small sellers and micro, small and medium enterprises that depend on online marketplaces, according to industry executives and merchants.
The Consumer Protection (E-Commerce) (Amendment) Rules, 2026, will take effect on January 1, 2027. The Department of Consumer Affairs notified the rules, which will replace the Consumer Protection (E-Commerce) Rules, 2020.
The new framework introduces rules for ranking disclosures, sponsored listings, discount claims, dark patterns and consumer grievance support. While the measures aim to improve transparency and consumer protection, industry representatives have raised concerns about how smaller sellers will manage some of the requirements.
Under the amended rules, e-commerce platforms will need to provide more information about the factors that determine product rankings. The framework also requires disclosure of sponsored listings so that consumers can identify paid promotions more clearly.
A senior industry executive said the goal of improving transparency is welcome but added that smaller sellers may find the ranking requirements difficult to manage. The executive said, “Requirements around disclosure of ranking parameters, particularly the relative importance of different parameters, could be difficult for small and unorganised sellers to navigate.”
The pricing rules could also require sellers to keep more detailed records. Under the new ‘prior price’ requirement, businesses making discount claims will need to refer to the lowest price offered during the previous 30 days.
Industry representatives said this could create extra work because individual sellers often change product prices. Small businesses without dedicated compliance staff may need to maintain detailed price records to ensure that discount claims remain accurate.
The amended e-commerce rules also link online marketplaces with the government’s 2023 guidelines on dark patterns. These guidelines cover online practices that can mislead or pressure consumers into making choices they may not otherwise make.
Businesses will have to conduct an annual self-audit related to dark patterns. Industry executives said the sector supports stronger accountability for consumer experience. However, they want clarity on how the certification process will operate for sellers that use large online marketplaces.
The senior industry executive said, “An annual self-audit is a reasonable way of doing that.” However, the executive also questioned whether some compliance duties could eventually move from platforms to individual merchants.
Small sellers and MSMEs often operate with limited staff and resources. Therefore, industry representatives have asked policymakers to make sure the new compliance system remains manageable for businesses of different sizes.
The amended framework also requires e-commerce platforms to partner with the National Consumer Helpline. The measure aims to make consumer complaint handling more accessible and improve coordination between online platforms and government-backed grievance systems.
Flipkart welcomed the government’s focus on consumer protection and transparency. A company spokesperson said, “We welcome the Government’s focus on strengthening consumer protection and transparency in e-commerce.”
The spokesperson added that Flipkart remains focused on supporting consumers as well as sellers, including small businesses, MSMEs and farmers. The company said it will study the detailed rules and continue discussions with the government.
Marketplaces play a major role in connecting small businesses with customers across India. As the January 1, 2027 implementation date approaches, sellers and online platforms will need to prepare for new disclosure, pricing, audit and consumer-support requirements under the amended e-commerce rules.
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