E-Commerce & Internet Regulation

Under Section 79 of the IT Act, an intermediary is any entity that receives, stores, or transmits electronic records on behalf of another person. This includes e-commerce marketplaces, social media platforms, messaging services, cloud providers, search engines, and hosting services. Intermediaries can claim safe harbour from liability for third-party content, but only if they comply with the due diligence requirements under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules. These include publishing a privacy policy and terms of use, appointing a grievance officer, responding to takedown requests within prescribed timelines, and not knowingly hosting unlawful content.

E-commerce businesses in India must comply with multiple overlapping regulations. The Consumer Protection (E-Commerce) Rules, 2020 require display of seller and product details, return and refund policies, grievance redressal, and restrictions on manipulative practices. The IT Act and intermediary guidelines impose takedown, content moderation, and grievance officer obligations. FDI policy restricts the business model (marketplace vs inventory-based) for entities with foreign investment. The Legal Metrology (Packaged Commodities) Rules require specific product labelling. If you sell food products, FSSAI licensing is mandatory. GST registration and compliance are required above the threshold. The specific compliance burden depends on your business model, product category, and ownership structure.

Dark patterns are deceptive design practices that manipulate users into making unintended choices, such as hidden charges, forced subscriptions, misleading confirmations, or making it deliberately difficult to cancel a service. The Consumer Protection Act, 2019 and the Guidelines for Prevention and Regulation of Dark Patterns, 2023 issued by the CCPA specifically prohibit these practices. Violations can result in penalties, orders to cease the practice, and reputational damage. We advise platforms on reviewing their user interfaces and checkout flows for dark pattern risks and structuring compliant user journeys.

Digital advertising in India is governed by a combination of the Consumer Protection Act (which prohibits misleading advertisements), the ASCI Code for Self-Regulation of Advertising Content, the IT Act and intermediary guidelines, and sector-specific regulations. Influencer marketing has specific disclosure requirements under the ASCI Guidelines for Influencer Advertising. Comparative advertising is permitted but must be factual and not misleading. Surrogate advertising faces restrictions in certain product categories. Advertising directed at children faces additional scrutiny under the Consumer Protection Act and the DPDP Act. We advise brands, platforms, and influencers on compliant advertising strategies.

Under the IT Act and the 2021/2023/2026 intermediary guidelines, platforms must comply with government takedown orders within prescribed timelines. The 2026 amendments tightened these timelines to three hours for content flagged by court order or government authority, and two hours for certain categories of harmful content. Failure to comply can result in loss of safe harbour protection, meaning the platform becomes directly liable for the content. Platforms must also retain records of removed content and the associated orders for specified periods. We advise platforms on building compliant takedown workflows and responding to government and court orders within the prescribed timelines.