Government cracks down on 'dark pattern' of e-commerce

New Delhi: The Union Ministry of Consumer Affairs has launched a  investigation into complaints against e-commerce platforms that levy additional charges for opting for cash-on-delivery (COD) payments.

"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, " Union Consumer Affairs Minister Pralhad Joshi posted on X. 

"A detailed investigation has been initiated and steps are being taken to scrutinize 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, " Joshi posted. 

The issue came to light after several  companies make consumers pay an extra fee if they opt for the cash-on-delivery option rather than pre-paying for the order online.

One X user highlighted his experience with a popular e-commerce firm where he was billed Rs 226 under ambiguous heads such as “offer handling fee,” “payment handling fee,” and “protect promise fee.” The user sarcastically criticised these fees, comparing them to other charges like the “Rain Fee” seen on food delivery platforms such as Zomato, Swiggy, and Zepto.

In response to such concerns, Joshi tweeted on Friday, emphasising that these practices would be scrutinised and strict action taken against companies infringing on consumer rights.

Dark patterns refer to manipulative design tactics employed by companies to extract money or data from consumers without their full awareness.