CAIT Welcomes New E-Commerce Rules, Seeks Tougher Action Against Predatory Pricing And Search Manipulation

Mumbai: The Confederation of All India Traders (CAIT) has welcomed the Consumer Protection (E-Commerce) (Amendment) Rules, 2026, but urged the government to take stricter action against predatory pricing, search manipulation and preferential treatment of select sellers on digital platforms.

New Rules Mandate Greater Platform Transparency

The amended rules, notified by the Department of Consumer Affairs, will come into force from January 1, 2027. They mandate greater transparency in sponsored listings and search results, accurate disclosure of discounts and compliance with safeguards against deceptive “dark patterns”.

The rules also require e-commerce entities to become partners in the convergence process of the National Consumer Helpline (NCH), strengthening the consumer grievance redressal mechanism.

E-Commerce Platforms To Join National Consumer Helpline System

According to the government, the NCH received 17,71,622 grievances in 2025, of which 5,11,196, or around 29%, were related to e-commerce.

Welcoming the reforms, Praveen Khandelwal, Chandni Chowk MP and Secretary General of CAIT, said they would help create a more transparent and accountable digital marketplace.

“Under PM Modi’s leadership, India continues to protect consumer rights while ensuring that small retailers, startups, and MSMEs receive an equitable, level playing field,” Khandelwal said.

He said CAIT had consistently raised concerns over deep discounting, opaque algorithms, search manipulation and preferential treatment of select sellers.

Traders Raise Concerns Over Discounts And Algorithms

Khandelwal also welcomed the requirement that whenever a discount is advertised, platforms must display the lowest price at which the product was offered during the preceding 30 days. He said this could help curb misleading price inflation during sales.

While praising Union Consumer Affairs Minister Pralhad Joshi and the Department of Consumer Affairs, CAIT called for a second phase of structural reforms to address what it described as long-standing market distortions.

Khandelwal said the success of India’s e-commerce ecosystem should be measured not merely by the growth of large platforms, but by how effectively digital commerce empowers traditional traders, women entrepreneurs and MSMEs.

Key amendments

- Platforms must provide complainants a copy of complaints recorded by their grievance officers.

- Search results cannot be manipulated in a manner that misleads users or affects their relevance.

- Discounted and prior prices must be displayed, with the prior price being the lowest price offered during the preceding 30 days.

- Platforms must comply with the 2023 dark-pattern guidelines, conduct annual self-audits and display compliance certificates.

- Key information such as best-before dates, returns, refunds, warranty, delivery and payment details must be provided.

- Consumer information cannot be used for specified purposes without express and affirmative consent.

- Platforms cannot levy bundled fees for services unrelated to e-commerce, subject to specified exceptions.

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