After multiple escalations, the Ministry of Consumer Affairs and Public Distribution met with major online platforms to drive action against "dark patterns", an online unfair trade practice. The Central Consumer Protection Authority (CCPA) had notified 13 types of dark patterns as unfair trade practices and most online platforms in India continue to deploy them, according to a new report from community platform LocalCircles.
Dark patterns involve deceptive practices that manipulate users into making decisions they might not otherwise make. These patterns can lead to higher prices, hidden fees, subscription traps, and a generally frustrating experience. The CCPA defined the 13 dark patterns that will classify as unfair trade practices.
The study has found that seven or more dark patterns are found on the following platforms:
Digital Lending
Edtech
Online Banking
eCommerce
OTT, App Taxis
Inventory eCommerce
Food Delivery
Quick Commerce & Grocery
Apps and Software
Medicine and Health Services
Travel
Airlines
Movies/ Event Ticketing
Online Payments
Home and other Services
Online Gaming
Real Estate
Online Insurance
Foreign Currency
Broadband
Recruitment/ Professional Networking and Information Service.
Next is the category with 4-6 dark patterns being reported include Train Ticketing, Mobile Telecom, Voice Assistants, Dinning Services, Governance Services, Home Health Services, Others, Electric Scooters, Online Financial Trading, Car Resale, Pathology & Diagnostics, Cryptocurrency, Matrimonial and Jewellery, and Digital Gold.
The third category of those with 1-3 dark patterns being reported include Car Rentals, Hotels/Homestays, Music Streaming and Mobile Devices.
Based on analysis of over 290 online platforms in India and inputs, complaints, and experiences of over 250,00 consumers across 392 districts, LocalCircles has found that some dark patterns are used more than others by various entities.
Based on this analysis, here are the stats of the most used dark patterns:
Forced Action tops the list with 211 or 73% of platforms using it
201 platforms, or 69% have been found to use Drip Pricing
155 platforms, or 53% have been found to use Bait & Switch
138 platforms, or 47% have been found to use Interface Interference
109 platforms, or 38% have been found to use Nagging tactics
106 platforms, or 36% have been found to use Subscription Trap
87 platforms, or 30% are using Privacy Zuckering, a dark pattern not yet specifically identified by the CCPA but will still qualify as an unfair trade practice.
(Photo: Local Circle)
(Photo: Local Circle)
Under the Consumer Protection Act, 2019, violations can attract penalties, including fines up to Rs 20 lakh and imprisonment up to six months. However, there seems to be little let-up in the use of dark patterns by apps and online platforms be it in travel, hospitality, banking and insurance or eCommerce, reported LocalCircles.
Breaking Down 'Dark Pattern'
Based on consumer inputs, complaints and experiences, LocalCircles has compiled an assessment of dark pattern on various online platforms.
1. The Forced Action dark pattern involves forcing the user to take an action to move to the next transaction step. This may include, downloading an app or seeking personal data that is not required or mandatory to complete the transaction.
2. The Drip Pricing dark pattern, also referred to as Hidden Charges, involves not displaying prices upfront on a transparent basis and adding additional charges at the final step. Charges for delivery, convenience charges, processing charges, and weather surcharges are typically not disclosed upfront and added at the last step, leading to final price of the product/service becoming as much as double of the base price.
3. The third dark practice that is fairly common across Indian platforms is that of Bait & Switch where a product is typically displayed at a low price however the price changes upon user clicking it or adding it in the cart to a higher price.
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