E-Commerce Firms Charging Extra For Cash-On-Delivery To Face Action, Says Minister

Union Minister Pralhad Joshi on Friday said that the Department of Consumer Affairs has received complaints against e-commerce platforms for charging extra for cash-on-delivery, a practice classified as a dark pattern that misleads and exploits consumers.

Joshi said, "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 e-commerce sector."

Joshi was responding to a post on X that highlighted e-commerce platform Flipkart's opaque charges. In a post, the user who highlighted Flipkart's practices wrote, "Forget Rain Fee by Zomato/Swiggy/Zepto. See the masterstroke by Flipkart:

• Offer Handling Fee (for giving me the discount you advertised??)

• Payment Handling Fee (for letting me pay you??)

• Protect Promise Fee (protecting me from what… satisfaction?)

Next up: Scrolling App Fee" [sic]

The charges levied were Rs 99 for the offer Handling Fee, Rs 48 for the payment handling fee, and Rs 79 for the protect promise Fee, totalling Rs 226 on a Rs 24,999 discounted item.

With 134,000 views and over 60 replies sharing similar screenshots, the post ignited backlash, prompting India's Consumer Affairs Ministry to probe Flipkart and Amazon for dark patterns, with Joshi promising regulatory action.

Such practices of opaque pricing are known as 'dark patterns'. Dark patterns involve deceptive practices that can lead to higher prices, hidden fees, subscription traps, and a generally frustrating experience, according to community platform Local Circle.

Last month, Flipkart Group said it has completed an independent self-audit on its digital platforms, aimed at ensuring 'the highest standards of compliance, accountability' and aligning with Central Consumer Protection Authority guidelines and advisory on prevention and regulation of dark patterns.

The comprehensive self-audit completion declaration has been submitted to the Consumer Affairs Secretary Nidhi Khare, the company said in a statement. The group, which includes Flipkart, Myntra, Flipkart Wholesale, and Cleartrip, affirmed its commitment to ensuring that its customers are treated with fairness and transparency.

Flipkart will continue to collaborate with the Ministry of Consumer Affairs and all other stakeholders to strengthen consumer protection, an official statement from Flipkart said.