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Drip Pricing Seen On Zomato, Flipkart, Other Online Platforms Despite Contrary Claims: LocalCircles

Drip Pricing Seen On Zomato, Flipkart, Other Online Platforms Despite Contrary Claims: LocalCircles
The practice of Drip Pricing, or hidden charges, was still found on 11 of the 26 platforms surveyed, LocalCircles said. (Image source: Freepik)
  • 26 e-commerce platforms claimed to be dark pattern free in self-declarations to CCPA
  • LocalCircles audit found 21 of these platforms still use deceptive design tactics
  • Drip pricing was detected on 11 major platforms despite claims of compliance
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Despite 26 major e-commerce platforms submitting self-declarations to the Central Consumer Protection Authority asserting they are "dark pattern free", an audit by consumer community platform LocalCircles has found that 21 of these platforms still use one or more deceptive design tactics.

The practice of drip pricing, or hidden charges, was still found on 11 of the 26 platforms that claimed full compliance, it said. The findings suggest a gap between the government's guidelines and the actual implementation of consumer protection standards by some of India's largest online businesses.

Drip pricing, where platforms levy fees like convenience or handling charges only at the final stage of a transaction without prior intimation, was identified on major sites including Flipkart, Myntra, Cleartrip, MakeMyTrip, BigBasket, Netmeds, TATA 1mg, Zomato, Blinkit, and Ixigo, according to LocalCircles.

Zepto, JioMart, Ajio, Meesho, Swiggy, Tia Beauty, Reliance Digital and Hamleys are among the platform companies that have reportedly steered clear of the dark pattern practices.

This alleged persistence of deceptive tactics comes after the CCPA formally notified "Guidelines for Prevention and Regulation of Dark Patterns" in November 2023, defining 13 manipulative designs, including false urgency, subscription traps, and basket sneaking, whose use may constitute unfair trade practices under the Consumer Protection Act. After limited initial compliance, the CCPA mandated self-audits, leading to the 26 declarations made public last week.

The LocalCircles audit was compiled from feedback from over 250,000 consumers across 392 districts. Their research, which covers over 300 online platforms in India, found that 97% of these platforms still employ dark patterns.

The most common manipulative practice is "Forced Action", used by 75% of platforms, where consumers are compelled to take an unwanted step, such as purchasing a Priority Pass for a discount that may later be rendered useless by order cancellation.

Following "forced action" which was reported by 75%, "drip pricing" came up as the second most prevalent dark pattern, found on 66% of the 300 platforms studied. The research also highlighted the widespread use of "interface interference" which was at 54%, and "bait and switch" which also stood at 52%.

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