Consumer Affairs Ministry probes Flipkart and Amazon over dark patterns

Following Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, the Department of Consumer Affairs (DoCA) has stepped up scrutiny of both platforms over alleged “dark patterns,” including extra charges for cash-on-delivery (COD) and hidden handling fees.

Union Minister Pralhad Joshi said on Thursday that the ministry has received several complaints regarding additional costs imposed on consumers at checkout, despite advertised discounts.

 “Charging extra for COD is classified as a dark pattern that misleads and exploits consumers,” said Joshi, adding that a detailed investigation is underway and strict action will be taken against violators.

The scrutiny is crucial, as millions of shoppers flocked to Flipkart and Amazon’s annual festive sale, often billed as the largest online retail events in India. Social media posts highlighted instances where platforms levy “offer handling fees,” “payment handling fees,” and “protect promise fees” on top of the discounted selling price. Such top ups charged by marketplaces effectively eroded the benefits of deals.

This isn’t the first time dark patterns have drawn regulator ire. In 2023, the government issued guidelines prohibiting manipulative tactics like drip pricing, false urgency, and disguised ads. However, recent consumer feedback suggests platforms may be skirting these rules through creative fee structures.

Besides Flipkart and Amazon, food and quick commerce majors such as Zomato, Swiggy, and Zepto have also faced criticism for tacking on unexplained charges. With festive season sales forming a major chunk of annual GMV for e-commerce firms, the government’s crackdown could have wide-ranging implications on platform margins and consumer trust.