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.
Rule 4(8) to (11) regulates the moments that matter most at checkout and after: charging for cancellation, recording consent, paying refunds and pricing. The 2026 amendment adds a new clause to rule 4(11) and four new sub-rules, (12) to (15), from 1 January 2027.
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 comes first; the 2027 additions are under their own heading. Later amendments should be checked on the website of the Department of Consumer Affairs.
Today an e-commerce entity cannot charge for cancellation unless it bears similar charges when it cancels unilaterally, must record consent only through an explicit and affirmative action (no pre-ticked boxes), must pay accepted refunds within a reasonable period, and must not manipulate prices to gain unreasonable profit or discriminate between consumers of the same class. From 1 January 2027 it must also not mislead users by manipulating search results, must identify sponsored listings, show the prior price with any price reduction, show the seller's name in the invoice and run a yearly self-audit against the dark pattern guidelines.
Rule 4(8): cancellation charges
Rule 4(8): "No e-commerce entity shall impose cancellation charges on consumers cancelling after confirming purchase unless similar charges are also borne by the e-commerce entity, if they cancel the purchase order unilaterally for any reason."
The rule is one of parity. A cancellation charge is allowed only if the entity would bear a similar charge when it cancels the order on its own for any reason. An invented example: Lakeview Mart charges a buyer a handling fee for cancelling after confirmation, but pays nothing to a buyer when Lakeview Mart itself cancels an order. Rule 4(8) does not permit that charge. The rule does not fix any amount, and none should be assumed. A buyer charged unfairly can ask for e-commerce dispute support.
Rule 4(9): explicit consent
Rule 4(9) says an entity "shall only record the consent of a consumer for the purchase of any good or service offered on its platform where such consent is expressed through an explicit and affirmative action, and no such entity shall record such consent automatically, including in the form of pre-ticked checkboxes". The consumer must do something clear, such as ticking a blank box or pressing a button that states the purchase. A box already ticked by default does not count. This links directly to the dark pattern known as basket sneaking; see our article on Annexure 1 items 1 to 4 of the Dark Patterns Guidelines.
Rule 4(10): refunds
Rule 4(10) requires every entity to "effect all payments towards accepted refund requests of the consumers as prescribed by the Reserve Bank of India or any other competent authority under any law for the time being in force, within a reasonable period of time, or as prescribed under applicable laws". Three things stand out. The duty is triggered by "accepted" refund requests. The time is "a reasonable period of time" unless another competent authority prescribes a period. And no number of days appears in the rule. A refund policy page should therefore state the period that applies under the payment channel's own rules.
Rule 4(11): two bars today
Rule 4(11) says no e-commerce entity shall:
- (a) manipulate the price of goods or services on its platform to gain unreasonable profit by imposing an unjustified price, having regard to prevailing market conditions, the essential nature of the good or service, any extraordinary circumstances under which it is offered and any other relevant consideration in deciding whether the price is justified; or
- (b) discriminate between consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act.
The test in (a) is not a price ceiling; it is a set of factors. "Essential nature" and "extraordinary circumstances" are the two the rule names, so a sharp rise in price for an essential item in an emergency is the case the rule has most in mind. Clause (b) protects consumers in the same class from being treated differently without a reason. The Act's meaning of unfair trade practice is in section 2.
From 1 January 2027: new clause and four new sub-rules
The 2026 amendment inserts, after rule 4(11)(b), the following:
- Rule 4(11)(c) - no e-commerce entity shall "mislead users by manipulating search result or search indexes having regard to the search query of the user".
It then inserts sub-rules (12) to (15) after sub-rule (11).
| Sub-rule | What it requires from 1 January 2027 |
|---|---|
| 4(12) | Sponsored listing of products and services must be "distinctly identified with clear and prominent disclosures" |
| 4(13) | Where the entity or the seller announces a price reduction, it must indicate the prior price along with the reduced price. "Prior price" means the lowest price of a good or service thirty days prior to the announcement of the price reduction |
| 4(14) | The invoice must display, clearly and prominently, the name of the seller in the same font size as the e-commerce entity's name |
| 4(15) | The entity must comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023, conduct a yearly self-audit to ensure its platform has no dark patterns, and display a certificate to this effect prominently |
An invented example for 4(13): a platform announces "reduced price" on a speaker. The lowest price at which it was sold in the thirty days before the announcement is the "prior price", and the platform must show that figure beside the new price. For sub-rule (14) the platform's invoice template needs the seller's name in the same font size as the platform's own name. For sub-rule (15), the dark patterns in the 2023 Guidelines are explained in our articles on guidelines 1 to 7, items 5 to 8 and items 9 to 13. The rule does not describe the form of the self-audit or the certificate; it states only that the audit is yearly and the certificate prominently displayed.
Platforms have time to prepare: checkout flows, consent boxes and invoice formats can all be reviewed before 1 January 2027. The complete list of 2027 changes is in our rule-by-rule account of the 2026 amendment.
What to check at checkout
- No cancellation charge that the platform would not bear itself.
- No pre-ticked consent boxes.
- A refund process that follows the payment rules that apply, in a reasonable time.
- A price policy that can be defended against the factors in rule 4(11)(a).
- For 2027: sponsored labels, prior price display, invoice layout, and a dark pattern audit.
Need help with checkout and refund compliance?
If your checkout, refund or pricing practices need to be reviewed against rule 4, our e-commerce dispute support team can help both platforms and buyers. Related reading: the grievance process in rule 4(4)-(7).
Key takeaways
- A cancellation charge is allowed only if the entity bears a similar charge when it cancels unilaterally.
- Consent must be recorded by an explicit and affirmative action; pre-ticked boxes are barred.
- Accepted refunds must be paid within a reasonable period or as the applicable law prescribes.
- Price manipulation for unreasonable profit and arbitrary discrimination between consumers of the same class are barred.
- From 1 January 2027: search manipulation, unlabelled sponsored listings, missing prior price, a seller name in a smaller font on invoices and a missing dark pattern audit are added to the list.
Read next
- Rule 4(4)-(7): grievance officer, imported goods and the National Consumer Helpline
- Consumer Protection (E-Commerce) (Amendment) Rules, 2026
- Guidelines 1-7 of the Dark Patterns Guidelines, 2023
- Consumer Protection for Online Transactions
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.