Scrutiny of Dark Patterns by DoCA in E-commerce

Dark patterns are now under increased scrutiny by the Department of Consumer Affairs (DoCA) following Flipkart’s Big Billion Days and Amazon’s Great Indian Festival sales. Allegations have been made regarding additional charges for cash-on-delivery (COD) and hidden handling fees.

On Thursday, Union Minister Pralhad Joshi stated that the ministry has received numerous complaints about extra costs that consumers face during checkout, despite the discounts that are advertised. Joshi remarked that charging extra for COD falls into the category of dark patterns that can mislead and take advantage of consumers. He confirmed that a comprehensive investigation is currently underway, with strict measures anticipated against those found violating these rules.

This scrutiny is particularly relevant as millions of customers flocked to Flipkart and Amazon during their annual festive sales, often regarded as the largest online retail events in India. Social media has been abuzz with instances of platforms imposing additional “offer handling fees,” “payment handling fees,” and “protect promise fees,” which are added to the already discounted prices. Such additional charges effectively diminish the value of the deals offered.

This is not the first occasion that dark patterns have attracted regulatory attention. In 2023, the government introduced guidelines against manipulative tactics such as drip pricing, artificial urgency, and disguised advertisements. However, recent feedback from consumers indicates that these platforms might be bypassing these regulations through clever fee structures.

Besides Flipkart and Amazon, other major players in food delivery and quick commerce, including Zomato, Swiggy, and Zepto, have also been criticized for imposing unexplained charges. Given that festive season sales contribute significantly to the annual Gross Merchandise Value (GMV) for e-commerce companies, the government’s enforcement actions could have significant consequences for platform profit margins and consumer confidence.