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Extra Cash-On-Delivery Charges? Govt Orders Probe Into E-Commerce Platforms

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Consumer Affairs Ministry e-commerce platforms for extra CoD fees, calling them dark patterns and promising strict action.

In November 2023, the Consumer Affairs Department officially classified 13 such tactics as dark patterns. (Representational)

In November 2023, the Consumer Affairs Department officially classified 13 such tactics as dark patterns. (Representational)

The Ministry of Consumer Affairs has initiated a probe into complaints against e-commerce platforms charging additional fees for cash-on-delivery (CoD), a practice classified as a “dark pattern” that misleads and exploits consumers.

Union Consumer Affairs Minister Pralhad Joshi said that steps are being taken to scrutinise these platforms closely. He further assured strict action against those violating consumer rights to ensure transparency and uphold fair practices.

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“The Department of Consumer Affairs has received complaints against e-commerce platforms charging extra for Cash-on-Delivery, a practice classified as a dark pattern that misleads and exploits consumers,” he said in a post on X.

“A detailed investigation has been initiated and steps are being taken to scrutinize 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,” he added.

The Union Minister was replying to an X user that purportedly highlighted Flipkart’s opaque COD charges.

“Forget Rain Fee by Zomato/Swiggy/Zepto. See the masterstroke by Flipkart,” the user wrote. The charges included ‘Offer Handling Fee,’ ‘Payment Handling Fee’ and ‘Protect Promise Fee.’

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.

The investigation follows consumer complaints received earlier this year, after some platforms started levying ‘cash handling fees’ on COD orders. One such instance gained attention in July, when Zepto users flagged the practice on social media and accused the platform of adding non-transparent charges at checkout.

Such fees may qualify as drip pricing, one of the 13 dark patterns recognised under Indian law, and hence warrant closer scrutiny.

What Are 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.

The government in 2023 formally defined 13 categories of dark patterns, including “basket sneaking,” “drip pricing” and “subscription traps,” to crack down on deceptive digital practices.

About the Author

Shobhit Gupta
Shobhit Gupta

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben…Read More

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben… Read More

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