Stricter online shopping rules effective January 1; curbs on fake discounts and hidden charges

If you shop online frequently, this news is important for you, as changes to e-commerce regulations will come into effect on January 1, 2027. These changes will significantly benefit online shoppers.

If you buy clothes, mobile phones, or household items online, this news is relevant to you. New rules for e-commerce companies will be implemented starting January 1, 2027. Consequently, it will become difficult for companies to display fake discounts, add hidden fees, or mislead customers. Let’s understand in simple terms what will change regarding your online shopping experience.

Fake Discounts

There will now be greater transparency regarding the large discounts seen during sales. Companies will be required to display the old price alongside the new price. This "old price" will be determined based on the item's lowest price over the preceding 30 days; in other words, it will no longer be easy to artificially inflate a product's price just to show a massive discount later.

Identifying paid product placements

If a product appears at the top of search results due to a paid placement, it must be clearly labeled as an advertisement or a "Sponsored Listing." This ensures you can distinguish between products appearing in organic search results and those displayed prominently due to payment.

Complete information before purchase

Online platforms will be required to clearly provide essential product information, such as:

Expiry or "Best Before" date
Return and refund policy
Warranty details
Delivery information
Payment-related details
For imported goods, information regarding the country of origin and the importer must also be provided.

Ban on hidden or unnecessary fees

Companies will not be permitted to charge separate fees for services that are not directly related to their core service offering. However, fees associated with loyalty and membership programs are exempt from this rule.

No data usage without consent

Companies will not be allowed to use customer data for specific purposes without obtaining the customer's explicit consent. Crackdown on Deceptive Online Tactics

Tactics used to mislead or pressure customers into purchasing goods or services are known as "Dark Patterns." Under the new regulations, companies must adhere to the 2023 guidelines regarding Dark Patterns. Additionally, they are required to conduct annual self-assessments and display a certificate of compliance on their platforms.

Access to Complaint Copies

Customers must be provided with a copy of any complaint lodged against an e-commerce company, ensuring they have a record of the grievance. Furthermore, e-commerce companies are required to integrate with the National Consumer Helpline.

Why Were the Rules Changed?

The government introduced these changes in response to the rising number of e-commerce-related complaints. According to the Department of Consumer Affairs, the National Consumer Helpline received 1,771,622 complaints in 2025, of which 511,196 were related to online shopping.

The existing e-commerce regulations were established in 2020. The government states that significant changes in online business and technology over the past few years necessitated an update to the rules.