CCPA Probing Ecommerce Platforms For Cash On Delivery Dark Patterns

The Central Consumer Protection Authority (CCPA) has begun investigating complaints against ecommerce platforms for charging additional fees on cash-on-delivery (CoD) orders.

Responding to a post on X, consumer affairs minister Pralhad Joshi said that the Department of Consumer Affairs has received multiple complaints from consumers highlighting that platforms are charging extra for CoD. 

The minister added that this practice has been classified as a dark pattern. “A detailed investigation has been initiated and steps are being taken to scrutinise these platforms closely. Strict action will be taken against those violating consumer rights to ensure transparency and uphold fair practices in India’s growing ecommerce sector,” he said.

The ministry is examining how widespread the practice is and whether platforms are clearly disclosing these charges to customers. 

This comes at a time when complaints against ecommerce platforms are on the rise in the country for manipulative practices, especially during peak sales periods. 

Platforms like Flipkart and Amazon have faced criticism from consumers for additional handling fees, “protect promise” charges, delayed refunds, cancelled orders, and unclear pricing during festive sales.

A survey conducted by LocalCircles earlier this year found that only 3% of Indian ecommerce platforms were free from manipulative practices. 

Notably, in May, Joshi urged ecommerce platforms to conduct self audits to analyse and remove dark patterns. 

Meanwhile, the CCPA continues to clamp down on misleading claims and unfair trade practices. In a statement today, the consumer protection body said it has imposed a penalty of INR 5 Lakh on Drishti IAS (VDK Eduventures Pvt Ltd) for publishing misleading advertisements about the UPSC Civil Services Examination 2022 results. 

The authority found that of the 216 candidates claimed to have cleared the exam through the institute, 162 had only taken its free interview guidance programme, while only 54 had enrolled in other courses.

This is the second time Drishti IAS has been penalised for similar conduct. So far, the CCPA has issued 54 notices to coaching institutes and imposed penalties totalling over INR 90.6 Lakh for misleading advertisements.