If you shop on e-commerce websites or apps like Amazon, Flipkart, or Meesho, your online shopping experience is set to change. The government has amended the Consumer Protection (E-Commerce) Rules, 2020. The objective is to provide customers with more information during online shopping and protect them from misleading offers, advertisements, skewed search results, and other deceptive practices. In essence, before purchasing an item, customers will have more information to understand exactly what they are buying and at what price.
These rules will come into effect on January 1, 2027. The new regulations introduce changes across several areas, including how discounts are displayed, search results, sponsored products, grievance redressal, product details, and customer data handling. According to the government, this will enhance transparency in the e-commerce sector and make it easier for customers to make informed purchasing decisions. Here is a look at how these new rules might change your online shopping experience:
1. No more confusion regarding discounts
Often, while shopping online, an item appears with a 40% or 50% discount, but the consumer is unaware of what the original price actually was. The new rules will clarify this.
Now, whenever a discounted price is displayed for a product, the platform must also show the 'previous price' alongside the new one. This 'previous price' must reflect the lowest price at which the item was sold in the preceding 30 days. This will allow consumers to understand the actual value of the discount and ensure they aren't simply being lured into a purchase by the promise of a massive price cut.
2. Arbitrary search results will come at a cost
You might search for an item, only to find an expensive product or one from a specific company appearing at the very top of the list. The new rules aim to curb such arbitrary manipulation of search results. E-commerce platforms will not be able to manipulate search results in a way that misleads customers or prioritizes products less relevant to their search queries. In essence, the relevance of results will be the primary factor during searches.
3. Identification of Sponsored Products
It is often difficult to distinguish between advertisements and organic search results. Under the new rules, paid or sponsored products must be clearly identified. This means that if a brand or seller pays to have their product displayed prominently, the customer will be explicitly informed of this fact. This allows the customer to understand whether a product appears at the top due to search relevance or because it has been promoted through paid placement.
4. Monitoring Website ‘Deceptive Practices’
Online platforms often employ design elements or technologies that can nudge customers into making purchases or decisions against their own interests; these are known as ‘dark patterns.’ Under the new regulations, e-commerce companies are required to conduct an annual self-audit to ensure such practices are not being used on their platforms. They must also submit a certificate confirming compliance with these rules.
5. From Grievances to Product Information
If a consumer lodges a complaint, they must be provided with a copy of the registered complaint. Additionally, e-commerce companies are required to integrate with the National Consumer Helpline to strengthen the grievance redressal mechanism. Furthermore, customers must be provided with essential product details, such as expiry or ‘best-before’ dates, return and refund policies, warranty terms, and information regarding delivery and payment. For imported goods, the name of the importer and the country of origin must also be disclosed.
6. No Extra Charges
Under the new rules, e-commerce platforms cannot levy additional charges on customers that are unrelated to the purchased item or the online transaction itself. However, charges associated with loyalty or membership programs that meet specific criteria outlined in the regulations will be exempt from this restriction. Additionally, consumer information cannot be used for commercial purposes without their explicit consent.
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