E-commerce Rules

Industry executives as well as merchants have said the government's amended e-commerce rules, while well-intentioned on consumer protection and transparency, could impose a disproportionate compliance burden on small sellers and MSMEs who form the bulk of sellers on online marketplaces, particularly around ranking disclosures and price-history requirements. The Consumer Protection (E-Commerce) (Amendment) Rules, 2026, notified by the Department of Consumer Affairs, will come into force from January 1, 2027, replacing the 2020 rules. The amended framework covers disclosure of ranking parameters, sponsored listings, a new "prior price" requirement for discount claims, compliance with the 2023 dark patterns guidelines, and mandatory partnership with the National Consumer Helpline. A senior industry executive said the broad objective of strengthening consumer protection and transparency is welcome, but some of the provisions need closer examination from the standpoint of the small seller

Amended rules require greater disclosure on pricing, search results, dark patterns and product information, with companies given until January 2027 to comply

Platforms will have to disclose the prior price when announcing discounts, clearly mark sponsored listings and provide more information on products, returns, warranties and delivery

The Department of Economic Affairs under the finance ministry has notified changes in Foreign Direct Investment (FDI) norms to allow e-commerce firms to maintain inventory only for export purposes. These firms will have to export goods manufactured or produced in India. Also, FDI in inventory-based e-commerce retailing has not been permitted. The department in a September 2 notification has added a provision in this regard in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. "An e-commerce entity is permitted to engage in inventory-based model of e-commerce exclusively for the export of goods or products manufactured or produced in India in accordance with the provisions of the Foreign Trade Policy 2023 read with the Handbook of Procedures (HBP) and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015," the provision says. With this, the decision announced in July has now come into force. "The restrictions on Business to Consumer (B2C) .

The EU has fined Alibaba-owned AliExpress a record $629 million, citing failures in content moderation, seller enforcement, and efforts to stop the sale of illegal products

The new industry platform has brought together more than 70 companies to foster collaboration with the government and support policy, research and best practices in digital commerce

A new BIS standard lays down voluntary guidelines for online platforms on seller verification so that consumers can make informed decisions during transactions

Internet has been tariff-free for decades; if that changes, it's because the world has decided it can't allow the US to run its digital empire forever

US Trade Representative Jamieson Greer said Washington would work with like-minded partners outside the WTO if the moratorium is not restored

The Central Consumer Protection Authority (CCPA) has initiated suo motu action against e-commerce platforms for listing and selling unauthorised walkie-talkies in violation of the Consumer Protection Act, 2019 and telecom laws, issuing final orders against eight entities and imposing penalties totalling Rs 44 lakh. Notices were issued to 13 e-commerce entities -- Chimiya, JioMart, Talk Pro, Meesho, MaskMan Toys, TradeIndia, Antriksh Technologies, Vardaanmart, IndiaMart, Meta Platforms Inc. (Facebook Marketplace), Flipkart, Krishna Mart, and Amazon, following the identification of over 16,970 non-compliant product listings across platforms. The CCPA found that platforms were facilitating the sale of Personal Mobile Radios (PMRs) operating outside the license-exempt frequency band, without Equipment Type Approval (ETA) certification or proper disclosure of licensing requirements. Penalties of Rs 10 lakh and Rs 1 lakh imposed The authority imposed penalties of Rs 10 lakh each on Meesh

According to a report by Blume Ventures, an early-stage venture fund, India's qcom market surged from $300 million in FY22 to an expected $7.1 billion in FY25

The ₹2,000 crore investment into Amazon India will go towards expanding fulfilment centres, improving safety and automation, and more

The consumer authority has directed all platforms to complete a self-audit within three months and submit a declaration to ensure they do not use deceptive design practices

After receiving the notice earlier this year, the platform has tweaked its interface, allowing customers to choose whether they wish to donate or not

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The monthly transacting users in the sector increased by over 40 per cent in 2024 and the average monthly orders per customer rose from 4.4 in 2021 to 6 in 2024

The government's draft highlights new challenges in consumer protection and trust introduced by e-commerce

The government has rolled out draft guidelines for e-commerce platforms, mandating self-regulatory measures to protect consumers from fraudulent practices amid the fast-growing digital shopping landscape in India. The draft guidelines, titled 'E-commerce-Principles and Guidelines for Self Governance', have been prepared by the Bureau of Indian Standards (BIS) under the Food and Consumer Affairs Ministry's supervision, seeking stakeholder comments by February 15. "...the rise of e-commerce has introduced new challenges, particularly in terms of consumer protection and trust. The importance of clear and effective rules and norms for self-governance in e-commerce cannot be further emphasized in this context," the draft stated. The framework introduces three-phase principles covering pre-transaction, contract formation, and post-transaction stages for e-commerce operations. Under pre-transaction requirements, platforms must conduct thorough KYC of business partners, especially third-pa

Major e-commerce platforms such as Zomato, Ajio and Ola will adopt a Safety Pledge on National Consumer Day on December 24 as part of steps to enhance product safety for online shoppers. The voluntary commitment, announced by the Department of Consumer Affairs, aims to detect and prevent the sale of unsafe and spurious products on digital marketplaces, an official statement said. A committee chaired by consumer activist Pushpa Girimaji developed the pledge after extensive stakeholder consultations in November 2023. With India projected to have 500 million online shoppers by 2030 and currently hosting 880 million internet users, the initiative addresses critical challenges in the rapidly expanding e-commerce landscape. The pledge requires platforms to cooperate with statutory authorities and raise product safety awareness among sellers. "The unique nature of e-commerce, where physical product examination is impossible, makes this safety initiative crucial," the department said. The

Saurabh Garg further added that the ministry is also looking for ways to tap alternative data sources, like night lights data and e-commerce prices, for its surveys