The Prior Price Rule: Showing Discounts Against the Lowest Price of the Last 30 Days

From 1 January 2027, if an e-commerce entity or a seller announces a price reduction in India, the page must show the reduced price and the prior price together, and the prior price is the lowest price at which the item was offered in the 30 days before the announcement. The rule sits in the Consumer Protection (E-Commerce) (Amendment) Rules, 2026, notified on 9 September 2026. A struck-through "was" price that was never the real recent price is what it is aimed at. This is general information, not legal advice.

What does the prior price rule say?

The notified text says that where an e-commerce entity or the seller announces a price reduction for any goods or services on its platform, it shall indicate the prior price along with the reduced price. It adds that "prior price" means the lowest price of a good or service thirty days prior to the announcement of the price reduction.

The Press Information Bureau describes it the same way: the reduced price and prior price both displayed, with prior price meaning the lowest price at which the goods or services were offered during the 30 days preceding the announcement. A law-firm summary puts it at Rule 4(13), which applies to every e-commerce entity, not only marketplaces. For the glossary version, see prior price.

When does it start?

The amended rules come into force on 1 January 2027. They do not apply retrospectively, so the 2026 festive sales, including Big Billion Days and the Great Indian Festival, are outside them. The first big sale windows under the rule will be the January and Republic Day sales.

Is the seller covered, or only the platform?

The gazette wording says "an e-commerce entity or the seller". So a seller who announces a price cut, for example through a coupon, a deal, or a changed listing price shown as a discount, is inside the wording. In practice the platform holds the price history and renders the strike-through, so most of the display work falls on the marketplace. But a seller who sets a price and then calls the drop a sale is the one who made the announcement.

Which entity is liable in a given case is not spelled out in the sources we read. The consequences are not either: the sources name no penalty, and contraventions from 1 January 2027 fall under the applicable provisions of the Consumer Protection Act, 2019.

How is the prior price worked out? A worked example

Take a pair of headphones with an MRP of ₹4,999.

The announcement is on 1 January. The 30 days before it include the ₹2,799 deal. So the lowest price in those 30 days is ₹2,799, and that is the prior price. A listing that shows "₹2,499, was ₹4,999" would not follow the rule as described; one that shows "₹2,499, was ₹2,799" would. The real discount is ₹300, about 11% (300 divided by 2,799), not the 50% the MRP strike-through suggests.

Prices here are selling prices including GST, as shoppers see them. Whether the rules count the MRP itself as a "price at which the good was offered" is not stated. The rule talks about the lowest price offered, so a price you never sold at is unlikely to qualify.

Does it replace MRP?

No. MRP is set under the Legal Metrology (Packaged Commodities) Rules and is the maximum retail price printed on the pack; nothing in the sources says the amendment touches it. What changes is the reference price shown beside a discount. You may still list the MRP on a listing as a fact about the pack. What the rule restricts is calling the gap between MRP and a sale price the "discount" if the item was recently cheaper. How a platform designs its price display for this is not yet published; we saw no platform statement as of November 2026.

What the rule does not say

A law-firm summary points out gaps: newly listed products with no 30-day history, personalised offers, and discounts funded by both seller and platform are not specifically addressed. The gazette text we read has no definition of "announcement", no carve-out for lightning deals, and no rule on whether the 30 days are calendar days or days on which the item was in stock.

Until the Department or the platforms clarify, assume the strict reading: any lowest price in the window counts, including a short flash price or a coupon-adjusted price that was visible to shoppers.

What should a seller do before the January sales?

1. Log prices. Record the live selling price per SKU per marketplace daily. A spreadsheet export from your seller account is enough to begin with.
2. Find your lowest 30-day price before each sale and treat it as the true prior price.
3. Plan sale depth from that number. A "50% off" claim only works if you did not recently sell near the sale price.
4. Avoid short dips. A one-day price drop to catch a ranking boost can reset the prior price for the next 30 days.
5. Check price tools. If you use repricing or ad automation, check whether it changes prices at night or during test periods; those records count too.
6. Review co-funded deals. Where the platform funds part of the discount, agree in writing who shows what price.

Our festive discount calculator and marketplace pricing calculator help you check margin at the price you will actually show. Planning sale budgets? See the festive season ads budget plan.

What does a compliant sale look like for a small seller?

Suppose you sell a kurta set at ₹1,299 all year and want a ₹999 weekend sale. The lowest price in the 30 days before is ₹1,299, so the display is "₹999, was ₹1,299": a ₹300 cut, about 23%. That is a real discount and it is safe. Now suppose you cut to ₹1,099 for two days three weeks earlier to test demand. The prior price is now ₹1,099 and the same ₹999 sale is only a ₹100 cut, about 9%.

The lesson is that every price you publish is a possible reference point for the next 30 days. Treat test prices, flash deals and coupon-adjusted prices as real prices. If a promotion needs a deep headline discount, plan it with a clean 30 days behind it, and put the sale in your calendar before touching the price.

How does this fit with the other changes in the amendment?

Sponsored listings must now be distinct from organic results, and search results must not be manipulated to mislead. Those are platform duties; see sponsored listing disclosure. The overview of all the changes is in our guide to the 2026 e-commerce rules amendment.

FAQ

What is the prior price in the new e-commerce rules? It is the lowest price at which a product was offered in the 30 days before a price reduction was announced. Platforms and sellers must show it with the reduced price from 1 January 2027.

Does the rule apply to sellers or only to Amazon and Flipkart? The gazette wording covers "an e-commerce entity or the seller" who announces the price reduction. In practice the platform displays it, but your own price changes feed the calculation.

Can I still show MRP with a strike-through? Not confirmed. The rule is about the prior price shown beside a reduction. Nothing we read bans MRP on a listing, but a discount claim against an MRP you did not recently sell at could conflict with the rule. Ask a lawyer.

What if my product is new and has no 30-day history? Not addressed in the text. A law-firm summary notes that newly listed products are not specifically covered. Be careful claiming a discount on a product with a short selling history.

Is the penalty stated? No penalty amount appears in the sources we read. Contraventions from 1 January 2027 fall under the applicable provisions of the Consumer Protection Act, 2019.

Does it apply to the 2026 Diwali sales? No. The rules start on 1 January 2027 and are not retrospective, according to a law-firm summary of the notification.

Next step

Start the daily price log today, and check your January sale prices against it. If you run many SKUs across marketplaces, Blooprint's catalogue and listing optimisation team can set up the pricing records and plan sale depth.