E-Commerce Rules 2026: Industry Experts Flags Higher Compliance Burden For Small Sellers, MSMEs

New Delhi, Sep 14 (KNN) Industry executives and merchants have raised concerns that the government's amended e-commerce rules, while aimed at strengthening consumer protection and transparency, could increase the compliance burden on small sellers and micro, small and medium enterprises (MSMEs) that make up a large share of online marketplace sellers.

The Consumer Protection (E-Commerce) (Amendment) Rules, 2026, notified by the Department of Consumer Affairs, will come into force from January 1, 2027. The amended framework includes 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.

Ranking, Price-Tracking Rules Raise Concerns

A senior industry executive said the broader objective of improving consumer protection and transparency was welcome, but some provisions needed to be examined from the perspective of small and unorganised sellers, PTI reported.

The executive said requirements to disclose ranking parameters, including the relative importance of different parameters, could be difficult for smaller sellers to navigate and potentially favour larger businesses with greater resources to interpret and respond to such requirements.

The pricing provision also needs closer consideration, the executive said, as individual sellers, rather than marketplaces, set and frequently change prices. 

The requirement to disclose the lowest price offered in the preceding 30 days could require small businesses without dedicated compliance teams to maintain detailed price histories, adding to their operational burden.

Dark Patterns Compliance

On dark patterns, the executive said the industry supports greater accountability for consumer experience and considers an annual self-audit a reasonable approach.

However, the executive said the certification process should be structured carefully so that additional compliance requirements are not passed on to small sellers and merchants with limited compliance capacity.

Industry Seeks Ease of Doing Business

The executive said online marketplaces play an important role in bringing small businesses, merchants and MSMEs into India's digital economy. Regulation should therefore strengthen consumer trust without making it more difficult for these businesses to participate in digital commerce, the executive added.

A Flipkart spokesperson welcomed the government's focus on consumer protection and transparency, saying the company remained focused on building consumer trust while enabling lakhs of sellers, including small businesses, MSMEs and farmers, to participate in India's digital commerce economy.

(KNN Bureau)