Govt amends e-commerce rules to protect consumers

The government has amended the Consumer Protection (E-Commerce) Rules 2020, to tighten norms on price transparency, sponsored listings, search result manipulation and dark patterns. Under the amended rules, e-commerce entities will have to disclose the reduced price and prior price whenever a price cut is announced. The prior price has been defined as the lowest price at which the product was offered in the 30 days before the discount was announced. The rules bar e-commerce entities from manipulating search results that mislead users or affect the relevance of results to a search query. The amended rules will establish a more transparent, accountable and consumer-centric e-commerce ecosystem. The amended rules will come into force from 1st January next year. 
The Ministry of Consumer Affairs, Food & Public Distribution said that the amended rules will strengthen the ease of doing business by curtailing safety issues around digital marketplace. It also highlighted that every e-commerce entity will be required to become a partner in the convergence process of the National Consumer Helpline providing an inclusive grievance redressal mechanism. Under the new rules, every e-commerce entity shall provide the complainant with a copy of the complaint as recorded by its grievance officer. E-commerce entities will not manipulate search results in a manner that misleads users or adversely affects the relevance of results to the user’s search query. Importer details and country of origin shall be disclosed for imported goods. 
The amended framework also strengthens provisions relating to dark patterns, which are online design practices that can manipulate or mislead consumers into making decisions they may not otherwise have taken. E-commerce entities will be required to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023. They will also have to conduct a yearly self-audit and prominently display a certificate of compliance.
The latest amendments seek to update the regulatory framework in response to evolving digital business models, online practices and consumer expectations. The government said the changes are intended to provide greater clarity to e-commerce entities regarding their responsibilities while promoting a level playing field for businesses operating in the digital marketplace.