Rule 4 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The first three sub-rules of rule 4 set the basics for every e-commerce entity: a nodal officer or an alternate senior designated functionary who lives in India (for certain kinds of entity), a prominent display of who the entity is and how to reach it, and a flat bar on unfair trade practices.
This article takes the rules as amended up to the Consumer Protection (E-Commerce) (Amendment) Rules, 2026 (G.S.R. 789(E) of 9 September 2026, in force from 1 January 2027). Today's text of rule 4(1) is the one substituted in 2021; rule 4(2) changes from 1 January 2027 and is shown under its own heading. Later amendments should be checked on the website of the Department of Consumer Affairs.
Rule 4(1), as substituted by G.S.R. 328(E) of 17 May 2021, requires a company, a foreign company or an overseas office, branch or agency owned or controlled by a person resident in India to appoint a nodal officer or an alternate senior designated functionary resident in India. Rule 4(2) requires the entity's legal name, headquarters and branch addresses, website details and customer care and grievance officer contact details to be displayed prominently. Rule 4(3) says no e-commerce entity shall adopt any unfair trade practice, on its platform or otherwise.
Rule 4(1): the nodal officer
Rule 4(1) as it now stands reads, in substance, as follows. Where an e-commerce entity is:
- a company incorporated under the Companies Act, 1956 or the Companies Act, 2013; or
- a foreign company covered under clause (42) of section 2 of the Companies Act, 2013; or
- an office, branch or agency outside India owned or controlled by a person resident in India, as provided in sub-clause (iv) of clause (v) of section 2 of the Foreign Exchange Management Act, 1999,
it "shall appoint a nodal officer or an alternate senior designated functionary who is resident in India, to ensure compliance with the provisions of the Act or the rules made thereunder".
Three points follow from the words.
- The duty is tied to the kind of entity. The sub-rule lists three categories and the appointment duty follows from being one of them.
- The person must be "resident in India". Residence is the test the rule uses; the rule gives no definition of the word, so the meaning is that of the law that defines residence.
- The purpose is compliance with the Act and the rules. The officer is the Indian point of contact for compliance.
A compliance advisory review can confirm which category a business falls in. The 1956 Act is named as printed; check the current companies law before relying on that reference. The 2020 wording of rule 4(1) was replaced by the 2021 substitution, so only the 2021 text is in force.
An invented example: Seabird Retail Inc. is a foreign company with a shopping app used in India. It is a foreign company covered by clause (42) of section 2 of the Companies Act, 2013, so rule 4(1) requires it to name a nodal officer or alternate senior designated functionary resident in India.
Rule 4(2): information to display
Rule 4(2) says every e-commerce entity shall provide the following information "in a clear and accessible manner on its platform, displayed prominently to its users". The corrigendum G.S.R. 488(E) of 4 August 2020 fixes the clause letters as (a) to (d).
- (a) legal name of the e-commerce entity;
- (b) principal geographic address of its headquarters and all branches;
- (c) name and details of its website; and
- (d) contact details such as e-mail address, fax, landline and mobile numbers of customer care and of the grievance officer.
From 1 January 2027
The 2026 amendment substitutes sub-rule (2). The introductory words become "in a clear and accessible manner on its platform, displayed prominently at an appropriate place to its users". Clause (d) becomes "contact details like e-mail address, landline and mobile numbers of customer care as well as of grievance officer". The word "fax" is dropped, and the display must be at an appropriate place on the platform.
| Duty | Today | From 1 January 2027 |
|---|---|---|
| Place of display | Displayed prominently to users | Displayed prominently at an appropriate place to users |
| Legal name, head office and branch addresses, website | Required | Unchanged |
| Contact details in (d) | E-mail, fax, landline and mobile numbers | E-mail, landline and mobile numbers (fax dropped) |
| Whose contacts | Customer care and grievance officer | Unchanged |
A platform footer that lists a fax number can keep it if the entity wishes; the rule's list after 2026 simply no longer requires one. The practical task before 1 January 2027 is to check that the information sits at an appropriate place, and not buried in a page few users open. A platform's disclosure pages can be audited against rule 4(2) before that date.
Rule 4(3): no unfair trade practice
Rule 4(3) reads: "No e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise." Two features stand out. The words "or otherwise" mean the bar is not limited to what happens on the platform; and it applies to every e-commerce entity, whether marketplace or inventory. The Act defines unfair trade practice in section 2; the general overview is in our post on unfair trade practices under the 2019 Act. Sellers carry a matching bar in rule 6(1).
A contravention of the rules is dealt with under the Consumer Protection Act, 2019 (rule 8). For the Act's treatment of e-commerce see section 94.
A short checklist for a platform
- Decide which of the three categories in rule 4(1) applies, and record the name of the nodal officer or alternate senior designated functionary.
- Display the four items in rule 4(2) in a place users can find.
- Remove any practice that falls within the Act's definition of unfair trade practice (rule 4(3)).
- Plan for the 2027 wording of rule 4(2).
Need help with e-commerce platform compliance?
Appointing the right person and presenting the disclosures properly takes some care. Our compliance advisory service can help you set up the nodal officer role and review your platform pages.
Key takeaways
- The nodal officer duty in rule 4(1) (as substituted in 2021) attaches to companies, foreign companies and overseas offices, branches or agencies of persons resident in India.
- The nodal officer or alternate senior designated functionary must be resident in India.
- Rule 4(2) lists four items to display prominently; "fax" is dropped from 1 January 2027.
- Rule 4(3) bars unfair trade practice on the platform or otherwise.
Read next
- Rule 3: definitions of marketplace, inventory and ranking
- Rule 4(4)-(7): grievance officer, imported goods and the National Consumer Helpline
- Consumer Protection (E-Commerce) (Amendment) Rules, 2026
- Section 94: unfair trade practices in e-commerce and direct selling
Disclaimer: Based on the rules, regulations and guidelines named above as published in the Gazette of India or on the CCPA website, with the amending notifications the article names (consulted on 3 October 2026). Later amendments, the Consumer Protection Act, 2019 provisions referred to, State rules and CCPA advisories should be checked. This article is general information, not legal advice; check the official text before acting.