E-commerce COD Charges Under Probe: Centre Cracks Down on Dark Patterns

E-commerce COD Charges Under Probe: Centre Cracks Down on Dark Patterns

The Department of Consumer Affairs (DoCA) has initiated an investigation into complaints against e-commerce platforms charging extra fees for cash-on-delivery (COD) payments.

Union Minister Pralhad Joshi called these practices “dark patterns” on X, highlighting that such tactics mislead and exploit consumers. He assured strict action against violators to ensure consumer rights and transparency in India’s growing e-commerce sector.

The issue came to light when users reported additional charges for COD orders. One X user shared that a popular e-commerce platform billed him Rs 226 under vague heads like “offer handling fee,” “payment handling fee,” and “protect promise fee.” He sarcastically compared these to unnecessary fees on food delivery apps like Zomato, Swiggy, and Zepto.

What Are Dark Patterns?

Dark patterns are manipulative design tactics used by companies to extract money or data from consumers without clear consent. Common examples include:

  • Displaying false scarcity (e.g., “only 1 item left”)

  • Fake countdown timers for offers

  • Hidden or confusing fees during checkout

Charging extra for COD under ambiguous fee names is a clear example of such unethical practices.

The government has previously engaged with e-commerce companies to curb deceptive behaviors and is working on new legislation to prevent them. Consumers can report violations via the Jagriti app, designed for lodging complaints about unfair trade practices.

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