The step is expected to check the practice of e-tailers inflating prices and offering fake discounts on products.
Starting today, e-commerce companies will have to display maximum retail price (MRP) and expiry dates of packaged products on their platforms.
The step is expected to check the practice of e-tailers inflating prices and offering fake discounts on products -- a practice they have been accused of in the past.
According to an Economic Timesreport, many discrepancies were found in the actual MRPs and those displayed on the websites. The report quoted a survey by LocalCircles, which showed that 41 percent of 10,000 online shoppers had reported witnessing inflated MRPs and fake discounts.
"The new rules will help in realistic price disclosures, and fake discounts will also vanish from online platforms," Yatish Rajawat, chief strategy offices, LocalCircles told the ET.
E-commerce giants like Flipkart, Amazon and Snapdeal have started working to comply with the new rules issued by the ministry. They will be required to change their existing policies with the sellers and legal authorities.
However, there are concerns that several e-tailers are not yet ready to roll out the change.
"Feedback from users suggested that only 10 to 12 percent of the products on e-commerce site are now showing MRP as they are being stocked by the e-commerce sites themselves," LocalCircles said in a statement.
An Amazon spokesperson told ET that it has taken multiple steps to inform the sellers of the changes in the legal metrology regulations. "We are working with them to enable them to comply with these changes in the regulations.”