New e-commerce rules may burden small sellers

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,