The Department of Consumer Affairs has launched a detailed investigation into complaints against e-commerce platforms that levy additional charges for opting for cash-on-delivery (COD) payments.
Union Minister Pralhad Joshi, in a recent tweet, described such practices as 'dark patterns' that mislead and exploit consumers, promising strict action against violators to protect consumer rights and promote transparency in India’s booming e-commerce sector.
The issue came to light after several consumers reported being charged extra fees when selecting the COD option instead of prepaid methods.
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. These include misleading signals such as displaying false scarcity (“only one or two items left”), setting fake countdown timers for offers, or using confusing, hard-to-notice fees buried deep within checkout processes. Charging extra for payment methods like CoD under vague fee names is a prime example of these unethical practices.
The government has previously engaged e-commerce companies, urging them to stop such deceptive behaviors and is actively working on new legislation to curb them. Consumers are encouraged to report these violations through the Jagriti app, which facilitates lodging complaints regarding unfair trade practices.
Source: India Today