Rules 7 and 8 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 7 sets duties for inventory e-commerce entities, those that own the stock and sell directly to consumers, including single brand retailers. Rule 8 then says that any violation of the rules is dealt with under the Consumer Protection Act, 2019. Rule 7(1)(a) is substituted 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. Later amendments should be checked on the website of the Department of Consumer Affairs.
An inventory e-commerce entity must display six kinds of information (return and refund terms, mandatory notices, payment information, contractual information, total price with breakup and a complaint ticket number), must not pose as a consumer to post reviews, must keep advertisements consistent with the real goods, must not refuse to take back defective, deficient, spurious, mis-described or late goods, and bears liability where it vouches for authenticity. Under rule 8 the Act applies to any violation.
Rule 7(1): what to display
Rule 7(1) requires every inventory e-commerce entity to provide the following "in a clear and accessible manner, displayed prominently to its users".
| Clause | Information |
|---|---|
| (a) | Accurate information on return, refund, exchange, warranty and guarantee, delivery and shipment, cost of return shipping, mode of payments, grievance redressal mechanism and any other similar information consumers may need to make informed decisions |
| (b) | All mandatory notices and information required by applicable laws |
| (c) | Available payment methods, their security, the procedure to cancel regular payments, any fees or charges payable by users, charge-back options if any, and contact information of the relevant payment service provider |
| (d) | All contractual information required to be disclosed by law |
| (e) | Total price in a single figure with the breakup showing all compulsory and voluntary charges (delivery, postage and handling, conveyance and the applicable tax) |
| (f) | A ticket number for each complaint lodged, through which the consumer can track its status |
Clause (c) matches the payment disclosure that a marketplace gives under rule 5(3). For tax in the price breakup, see our GST guides. Because an inventory entity sells its own goods, the information that a marketplace collects from sellers (rule 6(5)) is simply the entity's own responsibility.
From 1 January 2027: clause (a) substituted
The 2026 amendment substitutes clause (a): "accurate information related to return, refund, exchange, , warranty and guarantee, delivery and shipment, cost of return shipping, mode of payments, grievance redressal mechanism and any other similar information which may be required by consumers to make informed decisions". A proviso adds that "in respect of food products, the requirement relating to display of shall be subject to the provisions of the Food Safety and Standards Act, 2006 (34 of 2006) and the regulations made thereunder". The only new item is the date label. An entity that sells packaged food has to look at the food law for how that date is shown.
For labelling rules in e-commerce see our post on e-commerce labelling rules under Legal Metrology. Our compliance advisory team can help an inventory seller check its product pages.
Rule 7(2) to (5): conduct
Rule 7(2): no posing as a consumer. "No inventory e-commerce entity shall falsely represent itself as a consumer and post reviews about goods and services or misrepresent the quality or the features of any goods or services." This mirrors rule 6(2) for marketplace sellers; see rule 6(1)-(3).
Rule 7(3): advertisements. The entity must ensure that advertisements for marketing "are consistent with the actual characteristics, access and usage conditions" of the goods or services.
Rule 7(4): taking back goods. The entity shall not refuse to take back goods, withdraw or discontinue services, or refuse to refund consideration, if paid, where goods or services are defective, deficient or spurious, or not as advertised or agreed, or delivered late from the stated schedule. The proviso: for late delivery the sub-rule does not apply if the delay was due to force majeure.
Rule 7(5): authenticity. "Any inventory e-commerce entity which explicitly or implicitly vouches for the authenticity of the goods or services sold by it, or guarantees that such goods or services are authentic, shall bear appropriate liability in any action related to the authenticity of such good or service."
The words "explicitly or implicitly" are wide. A product page that says "original" or "genuine" explicitly vouches; a page that shows an official brand badge may do so implicitly. Liability is "appropriate" in "any action related to the authenticity". The Act's product liability provisions are in sections 82 and 83, section 84, section 85, section 86 and section 87. The rule says nothing about which of them applies in a given case.
An invented example: Willow Watches Ltd sells watches only through its own app and states "original movements only" on every page. If a watch turns out to be a copy, rule 7(5) makes Willow Watches bear appropriate liability in an action about authenticity because it explicitly vouched for it.
Rule 8: contravention
Rule 8: "The provisions of the Consumer Protection Act, 2019 (35 of 2019) shall apply for any violation of the provisions of these rules." The rules print no penalty; consequences come from the Act. The Act's treatment of e-commerce is in section 94.
Marketplace and inventory side by side
| Topic | Marketplace entity | Seller on marketplace | Inventory entity |
|---|---|---|---|
| Disclosure list | Rule 5(3) | Rule 6(5) (information given to the platform) | Rule 7(1) |
| Fake reviews barred | Not stated in rule 5 | Rule 6(2) | Rule 7(2) |
| Taking back goods | Not stated in rule 5 | Rule 6(3) | Rule 7(4) |
| Authenticity liability | Not stated | Not stated | Rule 7(5) |
| Complaint ticket | Rule 5(3)(b) | Not stated | Rule 7(1)(f) |
For the marketplace side see rule 5. The complete 2027 changes are in our rule-by-rule account of the 2026 amendment.
Need help with an inventory e-commerce business?
If you sell your own stock online and want your product pages, returns policy and authenticity statements reviewed, our compliance advisory team can prepare a checklist against rules 7 and 8.
Key takeaways
- Rule 7(1) lists six display items, including total price with breakup and a complaint ticket number.
- No fake reviews, no misleading advertisements and no refusal to take back defective, spurious or late goods.
- Vouching for authenticity, explicitly or implicitly, brings appropriate liability.
- Rule 8 applies the Act to any violation of the rules.
- From 1 January 2027, clause (a) adds a use-before date, with a food products proviso.
Read next
- Rule 6(1)-(3): seller duties, fake reviews and taking back goods
- Rule 5(3): what a marketplace must disclose
- Consumer Protection (E-Commerce) (Amendment) Rules, 2026
- Section 86: liability of product seller
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.