India Cracks Down on E-commerce 'Dark Patterns': Minister Targets Extra Cash-on-Delivery Fees

Union Minister Pralhad Joshi has announced that e-commerce platforms charging additional fees for cash-on-delivery services will face strict regulatory action, as part of the government's efforts to combat deceptive 'dark patterns' in online shopping.

Many e-commerce companies have been implementing extra charges when consumers select cash-on-delivery instead of making online prepayments, a practice now under official scrutiny.

The issue gained attention after a social media user highlighted their experience on X, describing how they were charged Rs 226 in various hidden fees labeled as 'offer handling fee,' 'payment handling fee,' and 'protect promise fee' during a transaction with a major online retailer.

The user wrote: "Forget Rain Fee by Zomato/Swiggy/Zepto. See the masterstroke by Flipkart: Offer Handling Fee (for giving me the discount you advertised??); Payment Handling Fee (for letting me pay you??) and Protect Promise Fee (protecting me from what... satisfaction?)," and sarcastically suggested "Scrolling App Fee" might be next.

Responding to this complaint, Minister Joshi confirmed on Friday that such practices would be thoroughly investigated, stating: "The Department of Consumer Affairs has received complaints against e-commerce platforms charging extra for Cash-on-Delivery, a practice classified as a dark pattern that misleads and exploits consumers."

He further explained that "A detailed investigation has been initiated and steps are being taken to scrutinise these platforms closely. Strict action will be taken against those violating consumer rights to ensure transparency and uphold fair practices in India's growing e-commerce sector."

'Dark patterns' refer to deceptive tactics employed by businesses to extract money or data from consumers through manipulation or misdirection. Common examples include displaying false scarcity messages suggesting limited stock availability, imposing artificial time constraints on offers, using confusing terminology for additional fees, or strategically hiding charges until the final checkout stage.

This isn't the first government intervention regarding such practices. The Center has previously conducted meetings with e-commerce companies to address these issues and is developing specific legislation to regulate these deceptive tactics.

Consumers who encounter such misleading practices are encouraged to report them through the Jagriti app, which serves as an official channel for lodging complaints related to consumer rights violations.