India Takes Strict Action Against E-Commerce Platforms Charging Unfair Cash-on-Delivery Fees

India's GST collections touched Rs 1.89 lakh crore in September (Representational)

New Delhi:

Union Consumer Affairs Minister Pralhad Joshi announced on Thursday that e-commerce platforms misleading consumers through unfair fees, particularly extra charges for Cash-on-Delivery (COD), will face strict action.

He described these practices as "dark patterns" that exploit consumers and violate fair trade principles.

The minister's statement came in response to a social media post on platform X, where a user highlighted how e-commerce companies frequently add hidden charges labeled as "offer handling fee," "payment handling fee," and "protect promise fee." The user compared this practice to the controversial "rain fee" previously imposed by food delivery applications.

"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??). Protect promise fee (protecting me from what... satisfaction?)," the user remarked.

Joshi confirmed that the Department of Consumer Affairs has received complaints regarding COD charges and initiated a comprehensive investigation.

"Platforms are being scrutinised closely, and any violation of consumer rights will invite strict action to ensure transparency and uphold fair practices in India's growing e-commerce sector," he emphasized.

The government has intensified its monitoring of e-commerce platforms in recent months.

Beyond unfair charges, authorities are also monitoring how these companies transfer Goods and Services Tax (GST) benefits to consumers.

The Consumer Affairs Department, through the National Consumer Helpline, has successfully resolved 3,981 GST-related complaints.

Authorities are verifying whether online platforms selling FMCG products such as shampoo, pulses, and other daily essentials are adhering to GST rate reductions.

"The CCPA is closely monitoring grievances -- ensuring transparency, protecting consumers from misinformation and guaranteeing that the benefits of GST reforms truly reach every Indian," Joshi stated previously.

India's GST collections reached Rs 1.89 lakh crore in September, showing a 9.1 percent year-on-year increase -- the fastest growth rate in four months.

Officials indicated that ensuring proper transfer of tax benefits to consumers will help stimulate demand and strengthen domestic economic growth.

Through stricter oversight and crackdown on unfair trade practices, the government aims to protect consumers from hidden charges while ensuring India's thriving e-commerce sector operates on fair principles.