CCPA Slaps INR 7 Lakh Penalty On Zepto Over Dark Patterns

SUMMARY

The CCPA found that Zepto engaged in ‘drip pricing’, wherein mandatory fees surfaced late in the purchase flow, and ‘basket sneaking’

The CCPA has directed Zepto to rework its platform to provide upfront disclosure of all charges at the start of the user journey, discontinue dark patterns and submit proof of compliance within 15 days

This comes weeks after 26 ecommerce and quick commerce platforms, including Zepto, submitted self-declaration letters that “confirmed” compliance with the norms curbing dark patterns

The central consumer protection authority (CCPA) has reportedly imposed a penalty of INR 7 Lakh on quick commerce major Zepto over alleged use of ‘dark patterns’ and misleading price disclosures.

As per Livemint, the CCPA found that Zepto engaged in ‘drip pricing’, wherein mandatory fees surfaced late in the purchase flow. Additionally, the consumer rights protection body found that the platform deployed ‘basket sneaking’, under which default add-ons such as Zepto Pass were auto-selected for customers without explicit user consent.

CCPA’s order, issued after a formal inspection in January this year, cited multiple breaches of the Consumer Protection Act, 2019 and the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

The CCPA order also reportedly noted that Zepto initially displayed a lower price, but raised the amount at checkout by adding undisclosed mandatory charges like handling fees and add-ons. This, as per the body, caused customers to pay more than the price originally shown.

Going forward, the CCPA has directed Zepto to rework its platform to provide clear, upfront disclosure of all charges at the start of the user journey, discontinue dark patterns and submit proof of compliance within 15 days.

The quick commerce unicorn is the second company to be penalised under the anti-dark pattern norms. In August, ride-hailing giant Rapido was fined INR 10 Lakh over misleading advertisements and auto-opt-in practices.

The CCPA’s latest clampdown underscores increased scrutiny on digital businesses leveraging tactics to nudge users into unwanted purchases or hide actual costs. Earlier in May, the consumer affairs department directed all ecommerce and online platforms to comply with government guidelines on dark patterns or face action. The notice was sent to 11 companies, including Zepto, Rapido, Uber and Ola.

At the time, consumer affairs minister Pralhad Joshi had asked ecommerce companies to conduct self audits to analyse and remove dark patterns.

Following that, the ministry last month said that 26 ecommerce and quick commerce platforms voluntarily submitted self-declaration letters that “confirmed” compliance with the norms curbing dark patterns.