Gauri Kumar

India’s e-commerce sector has witnessed remarkable growth, with sectoral revenues projected to reach $163 billion by 2026. Between 2020-2023, 125 million Indians began using e-commerce platforms, with 80 million more consumers projected to join by 2025. Beyond Tier-1 markets, Tier-2 and smaller markets also actively engage with e-commerce platforms, with over 80% of Amazon and Meesho sales originating from these regions during the 2023 festive season. This increase in omni-channel adoption is largely attributed to successful market expansion, broader consumer adoption, and inclusive digital access due to greater internet and mobile penetration into Tier-2 and smaller markets.

Trust has transitioned from being an aspirational ideal to a crucial foundation for India’s digital marketplace. Leading policy research institutions highlight that sustainable and orderly growth of e-commerce depends directly on transparent pricing, verified sellers, and robust grievance redressal frameworks. Embedding these principles within platform design and policies to reinforce consumer confidence can promote equitable participation across diverse user groups.

A major risk to trust, and one gaining renewed focus from regulators and consumers, are platform design and practices such as dark patterns. Dark patterns leverage user interface design to subtly influence consumers to make certain choices, often without full awareness. An example of dark patterns is hidden costs, where additional charges are disclosed only at the final payment stage. Practices of this nature particularly impact price-sensitive Indian consumers and are classified as “unfair trade practices”.

A robust grievance redressal mechanism is a crucial facet of reinforcing consumer trust. In FY2023-24, the Department of Consumer Affairs’ National Consumer Helpline (NCH) noted that most e-commerce grievances related to refund delays, delivery issues, and product discrepancies, underscoring the importance of responsive and accessible resolution processes. Notably, e-commerce accounted for 36.1% of the total complaints registered by the helpline. Strengthening and streamlining grievance redressal and expanding multi-lingual, omni-channel access points, will ensure timely handling of issues while enhancing consumer confidence across the diverse Indian market. Continued collaboration among regulators, platforms, and consumer groups is essential to evolve these mechanisms in line with the sector’s dynamic growth and consumer expectations.

In response to the evolving e-commerce landscape and its impact on consumers, the Indian government has begun adopting a more interventionist stance. The CCPA’s 2025 directive mandating self-audits of e-commerce platforms for dark patterns within three months signals a shift toward proactive governance. Platforms have been asked to file self-declarations confirming compliance, though such voluntary disclosures need to be supplemented with strong enforcement mechanisms.

The BIS guidelines on self-governance, which emphasise transparent algorithms, seller KYC, and consumer-centric returns and refund processes, offer a more holistic framework. Notably, the draft also encourages fair competition by disallowing preferential treatment of sellers. A joint working group of regulators, academia, and consumer bodies is currently reviewing feedback for finalisation, pursuing a more consultative approach to regulation.

While the government has made significant progress in drafting forward-looking policies which aimed at building trust and confidence among consumers, some facets need further attention. Consequently, enforcement approaches and platform compliance continue to evolve in response to the dynamic digital landscape, with ongoing efforts focused on ensuring that consumers are increasingly aware of their rights as digital literacy expands to match new modes of online interaction.

India’s digital commerce story has been one of scale and speed. Underscoring its acceleration is the growing consensus amongst experts that trust is not an abstract value but an essential infrastructure. The CUTS Institute notes that consumer confidence hinges on clear pricing, verified sellers, and robust grievance redressal systems. Regulatory efforts, including the CCPA’s crackdown on dark patterns and the BIS’s draft self-governance guidelines, reflect a growing policy consensus that fairness and transparency must be built into platform architecture.

Industry voices also recognise this shift. PwC’s consumer insights suggest that platforms investing in ethical design and responsive service are better positioned to retain users, especially in emerging markets. However, the effectiveness of these interventions depends on consistent enforcement and consumer awareness.

The way forward is not unilateral regulation but shared accountability—between government, platforms, and consumers. Building trust must be deliberate, measurable, and systemic if India’s digital commerce economy is to be both expansive and equitable.

*The Author is a leading policy professional at MSL Group