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Customers say they are not adequately informed about these surcharges, which are often only revealed during checkout.
Centre Probes Extra Charges On COD Orders By E-Commerce Platforms. (Pixabay)
The central government has launched an investigation into additional charges levied by e-commerce platforms, particularly for customers using the cash-on-delivery (CoD) option, Union Consumer Affairs Minister Pralhad Joshi announced on Friday.
In a post on X, Joshi revealed that the Ministry of Consumer Affairs had received complaints alleging that platforms impose hidden or misleading fees under different categories. These include “offer handling fee”, “payment handling fee”, and “protect promise fee.” Customers say they are not adequately informed about these surcharges, which are often only revealed during checkout.
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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. 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 posted.
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.A detailed investigation has been initiated and steps are being taken to…
https://t.co/gEf5WClXJX— Pralhad Joshi (@JoshiPralhad) October 3, 2025
What are dark patterns?
Dark patterns are online tactics designed to trick or pressure consumers into making choices they may not have otherwise made. Common examples include fake urgency messages such as “only one item left” or perpetual “limited-time offers.” Such ploys are illegal under Indian consumer law.
Officials said that extra CoD fees fall within this category because they are not disclosed upfront and often appear only at the final stage of checkout, creating a misleading impression of the product’s true cost.
Recent action against platforms
The issue of deceptive charges is not new. Last month, the Central Consumer Protection Authority (CCPA) fined Digital Age Retail Pvt. Ltd., which operates the baby products brand FirstCry, Rs 2 lakh for misleading price displays. FirstCry showed product prices as “MRP inclusive of all taxes” but added GST at checkout, giving customers a false impression of bigger discounts.
Authorities have warned that such behaviour constitutes “unfair trade practices” under the Consumer Protection Act, 2019.
How CoD charges work?
Major platforms such as Amazon, Flipkart, and FirstCry have been adding between Rs 7 and Rs 10 per order when customers opt for cash-on-delivery instead of prepaid methods. Flipkart has explicitly introduced a Rs 5 handling fee for CoD orders, citing higher operational costs.
In practice, consumers may see a “Rs10 convenience fee” on Amazon or a “Rs 10 CoD handling fee” on Flipkart and FirstCry. These surcharges are separate from existing delivery charges, return costs, or platform fees, meaning they directly inflate the final bill.
Officials emphasised that all e-commerce companies have been reminded to eliminate deceptive practices and provide full transparency on charges. The ministry has warned that penalties and further regulatory action will follow if violations persist.
About the Author
Shuddhanta Patra, a seasoned journalist with eight years of experience, serves as Senior Sub‑Editor at CNN News 18. With expertise across national politics, geopolitics, business news, she has influenced public…Read More
Shuddhanta Patra, a seasoned journalist with eight years of experience, serves as Senior Sub‑Editor at CNN News 18. With expertise across national politics, geopolitics, business news, she has influenced public… Read More
Delhi, India, India
October 04, 2025, 08:20 IST
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