Panel to track dark patterns, e-commerce platforms told to conduct self-audits
In order to identify and eradicate 'dark patterns', the government has constituted a Joint Working Group (JWG) and advised e-commerce platforms to comply with Guidelines for Prevention and Regulation of Dark Patterns, 2023.
'The e-commerce platforms, based on the self-audit reports, have also encouraged to give self-declarations that their platform is not indulging in any dark patterns. The self-declarations by the platforms will enable fair digital ecosystem along with building trust between consumers and e-commerce platforms,' a government release said.
A 'dark pattern' refers to a deceptive design technique employed in user interfaces that misleads users or coerces them into making unintended choices. This practice undermines consumer autonomy, decision-making, and overall choice.
The government has so far specified 13 dark patterns, namely: false urgency, basket sneaking, confirm shaming, forced action, subscription trap, interface interference, bait and switch, drip pricing, disguised advertisements and nagging, trick wording, saas billing and rogue malwares.
The Department of Consumers Affairs has constituted a JWG comprising representatives from concerned Ministries, regulators, voluntary consumer organisations and NLUs. The group shall update the department also suggest appropriate awareness programmes for awaring the consumers.
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Indian Express
07-08-2025
- Indian Express
‘Basket sneaking', ‘false urgency': How apps, websites lure consumers to click, buy, and subscribe
'Low in stock,' 'Only two pieces left,' 'Just two hours until the sale ends' — chances are, you've seen these messages flash across your screen while browsing shopping websites. But in many cases, it could simply be tactics to create a sense of 'false urgency', even when plenty of stock remains. 'False urgency' is an example of dark patterns used by digital platforms and apps to deceive, coerce, or influence consumers into making choices that are not in their best interest. While these practices might seem annoying and frustrating, they actually fall under the category of 'unfair trade practices' as defined in Section 2(47) of the Consumer Protection Act, 2019, and can attract a punishment of both imprisonment and fine. On November 30, 2023, the Central Consumer Protection Authority issued 'Guidelines for Prevention and Regulation of Dark Patterns, 2023' and listed 13 identified dark patterns in the e-commerce sector. • Basket sneaking Inclusion of additional items in your shopping basket at the time of checkout from a platform without asking for your consent first. This inflates your final bill in relation to what you had initially decided to pay. • Confirm shaming Guilt tripping with pop-ups such as 'No, I don't want to save money!' while declining an offer online. • Forced action Some platforms 'force' users to take unwanted actions — such as buying additional products or subscribing to unrelated services — just to complete their original purchase. One example is bundling newsletter sign-ups with terms and conditions, leaving users with no option to go forward without signing up. • Drip pricing This is the practice of showing consumers an initial price for a product and then 'dripping' additional fees. Under this practice, the prices of goods are not revealed upfront and are surreptitiously revealed as the consumer is about to make the final purchase. • Subscription trap Ever thought that making subscriptions to platforms and apps was far easier than cancelling them? If yes, then it's likely you've encountered a 'subscription trap' — a process which makes cancellation of a paid subscription or service lengthy, complex and cumbersome in the hope that customers would get exhausted and end up staying subscribed. • Bait and switch This is a form of deception wherein one outcome is advertised and another is served. An example could be when discounts are offered, but terms that make the savings negligible are imposed simultaneously. • Disguised advertisement With this practice, platforms blend an advertisement with genuine interface elements to ensure engagement with the ad by subterfuge. Fake 'download' buttons on websites that redirect you to malware or advertisements are an example. • Interface interference Poor design elements, such as low contrast or obscure placement, are often used by platforms to hide critical information. Hard-to-read text, which leaves users unaware of key terms or information, is an example. • Trick wording This involves using vague or misleading language to confuse users into unintended actions. Phrases such as 'check this box to opt out' could lead users to believe they are opting out. • Nagging Like a nagging loved one, digital platforms could repeatedly interrupt users with prompts and pop-ups. This dark pattern involves an overload of requests, which is unrelated to the intended purchase of goods and services. In answer to the Rajya Sabha dated August 5, B L Verma, the Minister of State, Consumer Affairs, Food and Public Distribution, said all e-commerce platforms have been advised to take necessary steps to ensure their platforms 'do not engage in such deceptive and unfair trade practices which are in the nature of dark patterns'. 'Further, all e-commerce platforms have been advised to conduct self-audits to identify dark patterns, within three months of the issue of the advisory, and take necessary steps to ensure their platforms are free from such dark patterns,' he said. Verma responded to a query posed by Rajya Sabha MP Sadanand Mhalu Shet Tanavade on the outcome of various guidelines notified by the government for the prevention and regulation of manipulative dark patterns used by e-commerce companies and the actions that have been taken so far. Verma also stated that, based on self-audit reports, the e-commerce platforms should give self-declarations with the assertion that their platform is not indulging in any dark patterns. 'A Joint Working Group, comprising representatives from Ministries, National Law Universities and Voluntary Consumer Organisations, has been constituted vide Office Memorandum dated June 5, 2025, for identifying dark patterns… stakeholders to work together in creating a transparent, ethical and user-centric online environment,' the answer added. In 2024, the Advertising Standards Council of India (ASCI) analysed around 12,000 screens from 53 apps across nine industries, identifying an average of 2.7 deceptive patterns per app. The ASCI had also pointed out that 52 of the 53 top Indian applications and platforms use dark patterns to deceive their users, implying that it is extremely common for users to come across these.
The Print
03-08-2025
- The Print
Centre considers dramatic MRP overhaul to limit ‘irrational pricing'. What it'd mean for buyers, sellers
Remember rushing to the grocery store and checking the MRP labels before adding items to your cart? Consumers often refuse to pay the street vendors extra charges such as the 'cooling fee', considering that printed MRP is a government-mandated, fixed price that sellers must respect. Yet, rarely examined is how this price is determined. More importantly, why do identical products across brands carry varying MRPs? These questions have led New Delhi policy circles to rethink whether the MRP system is the best choice for consumers and retailers. Not a bureaucratic change, the overhaul will be addressing the chronic complaints of excess pricing, as well as misleading discounts, leaving consumers short-changed. New Delhi: From a package of biscuits to a bottle of shampoo in crowded shopping aisles—all bear that ubiquitous MRP tag, but change is in the offing. The Narendra Modi-led government is considering a dramatic overhaul of the Maximum Retail Price (MRP) regime, which has been a bulwark of consumer protection since the 1990s. At its core, the maximum retail price is the highest price at which a seller can sell a packaged product to consumers in India. It is not a suggestion; it is a legal cap, inclusive of all taxes; printed, right on the packaging. It is illegal for retailers to undercut the cap in a competitive market and illegal to charge even an additional Re 1. The MRP system avoided arbitrariness, ensuring transparency in prices where bargaining is not always doable, such as new retail environments. The root of this pricing system goes back to 1990, when amendments to the Standards of Weights and Measures Act, 1976, introduced the MRP. India, then poised for economic liberalisation, still had spotty consumer protections. The intention behind MRP was to protect consumers against exploitative tactics, such as retailers raising prices of a commodity during shortages. It developed from previous attempts in the 1970s to prevent tax evasions and extortionate local charges. By 2011, the Legal Metrology (Packaged Commodities) Rules legalised MRP, making it compulsory on all pre-packaged products, thereby eliminating dual pricing or preventing sellers from printing different prices on them. Legally, MRP, which falls under the Legal Metrology Act, 2009, is administered by the Department of Consumer Affairs. Violations result in fines or penalties imposed by organisations, such as the Central Consumer Protection Authority. The MRP system—a one-of-a-kind pricing system adopted by India, Bangladesh, and Sri Lanka, among other countries—is different from the recommended retail prices prevalent in the United States and Europe, among other nations, where market forces allow greater freedom. Jump to 2025, the Union Ministry of Consumer Affairs is leading what may become the most far-reaching MRP overhaul ever. In a crucial meeting with trade bodies, including the Confederation of Indian Industry, consumer associations, and tax authorities, earlier this year, in May, the Centre mulled over new frameworks. The new proposal? Tie MRP closer to real production and marketing expenditure, particularly in the case of essentials and daily items, and that may require fixing 'standard costs' after consultations with stakeholders, and possibly, amending the Legal Metrology Act, or the new GST regulations. The government is currently attempting to introduce a formula that will limit 'irrational pricing' to create the illusion among customers that they are saving money. The revamp may include transparency interventions, such as compulsory cost segregation, or maybe product QR codes that enable consumers to scan the code to confirm pricing rationale. Talks on adopting a Suggested Retail Price (SRP) model, as in Western economies, are also ongoing. Under the SRP, retailers may have room to negotiate local costs, such as transport in hinterlands. These contemplations are not occurring in a vacuum but are part of a larger consumer protection push, including anti-profiteering under GST and attempts to rationalise prices with digital platforms. Up to July 2025, however, no announcement of any final decision had been made. But why this shift, now? The consumer retail business has been booming in India. Online titans and hypermarkets are driving this boom while causing price distortions. Manufacturers tend to overprice MRPs to allow flashy discounts, tricking consumers into believing they are snagging a bargain. Consider a plain juice sachet, say one priced at Rs 50 and another at Rs 150, without any apparent logic, though the contents are the same. This lack of transparency kills trust and stokes perceptions of profiteering, particularly in the backdrop of post-pandemic inflation. Another example of exorbitant pricing is overpricing in tourist spots or rural areas with limited competition. Wider economic changes are at play there. Considering the growth rate (six to seven percent) in India, the government is looking to create a more equitable market, enhancing consumption without suppressing any invention. Along with the worldwide trend of nations, such as the US, depending on antitrust regulations to cap cartels, India is also viewing the reforms in MRP as a means to modernise and safeguard poor consumers in an economy that remains uneven. The crossroads: Pros and cons If implemented successfully, the overhaul of MRP could be a game-changer. Tying the maximum retail price of a product to its expenses could potentially lead to a decrease in the effective rates of necessities and lower household bills. A consumer could easily identify pricing scams on a soap packet if they could scan a QR code and see the cost breakdown. For instance, MRP may be production costs (40%), taxes (20%), and profit margin (40%). It would prevent tax evasions, as well as harmonise the MRP with GST, and prevent the concealment of profits in inflated MRPs. For companies, more defined norms may lead to honest pricing, increased competition, and more innovations. It will be a move in the direction of fairness, particularly in rural India, where MRP is the sole price reference in the absence of bargaining power, Consumer lobbies say. On the whole, it could also increase economic efficiency; research has indicated equivalent reforms in fuel subsidies insulated business growth from external shocks. But not all are smiling. Industry group voices, such as manufacturers and retailers, caution that inflexible cost-based MRPs could freeze out adaptability in a heterogeneous market. India extends from metropolitan malls to isolated villages, but requiring standard prices overlooks differential costs, such as higher transportation costs in hill stations. A move to SRP may result in price instability or cartels in low-competition areas, harming the very people it is supposed to protect. Speaking to ThePrint, Abhishek Rana, an advocate at the Supreme Court of India, said that the proposed law might take away the right of business owners to practise their kind of business. 'India, being a price-sensitive market, with hidden charges levied almost everywhere, a proposal aimed at regulating the method of calculating MRP or linking it to inherent production value, may be a welcome change. However, a challenge that the government may face will be to balance it with the right to business,' Rana added. Rana further pointed out the intangible factor of quality. One excuse that companies tend to use in their favour is the idea of brand quality and trust. Companies tend to promote their products as better compared to their rivals' by stating that the quality of the raw material used is superior. There may be some truth in it; it does allow a lot of 'puffery'. Throwing light on the same, Rana said, 'An argument of costs incurred due to the intangible parameter of an item'squality, production method, or even method of sourcing its raw materials can be difficult to regulate with guidelines, more so for luxury goods. How the government overcomes these probable issues remains to be seen. A suggested or recommended retail price, as adopted by various countries, might be a consideration.' While the revamp may seem ambitious, it may be of interest to small firms that remain concerned over compliance costs. Estimating and rationalising each MRP may increase administrative expenses, which the firms could transfer to consumers. Critics highlight that the MRP's dysfunction stems from weak enforcement, not the system itself; overhauling it risks unintended hikes if guidelines are too prescriptive. There is also the risk of dampening e-commerce dynamism, where personalised pricing drives sales. In a price-conscious country, any perceived hike can trigger anger, reminiscent of earlier milk street vendor boycotts over MRP issues. Transparency is commendable, but over-regulation, as in other reforming economies, may stifle India's free-market ambitions. (Edited by Madhurita Goswami) Also Read: ̌BJP MPs go full throttle against Trump even as govt hails enduring India-US ties amid tariff tension
Mint
01-08-2025
- Mint
Zepto, under watch for dark patterns, may tweak checkout experience
Bengaluru: Quick commerce firm Zepto is planning changes to its Super Saver feature as part of a broader overhaul to eliminate hidden charges and clean up dark patterns on its platform, according to two people familiar with the matter. The firm is looking to merge the Super Saver tab with the main Zepto tab in the coming weeks, as well as waive off some additional fees like fulfilment charges and handling fees, the two people said, requesting anonymity. It is not immediately clear if Zepto will do away with the same charges on the main tab as well. The move is expected to reduce clutter on the website as well as give better clarity to consumers on cart value and other charges, said one of the persons quoted above. However, the average order value on the platform may see some impact, this person said. Zepto declined to comment on the matter. This comes at a time when Zepto and several other online marketplaces have come under the government radar for dark patterns or sneaky online practices designed to mislead users into making unintended purchases or subscriptions. In June, the Central Consumer Protection Authority (CCPA) directed several online commerce platforms—including Zepto, Amazon, Uber, and Rapido—to conduct self-audits within three months to identify and eliminate these dark patterns, Mint reported earlier. India is the first country to issue dedicated guidelines to regulate dark patterns. Government officials have said that the aim is not to hamper digital commerce but to ensure that its rapid growth is matched by ethical standards and consumer safeguards. Several consumer forums have called out quick commerce platforms for manipulating customers by inflating product prices on the basis of the smartphone they use, making free delivery option manual instead of automatically applying it to an eligible cart, introducing multiple additional fees like handling, packing and tips, and creating false urgency by stating low stock and flash sales. 'There's still a long way to go. Dark patterns are so deeply ingrained in the systems and simply fixing one feature won't have a significant impact on customer trust. Overall, the customer experience has been eroded," said Satish Meena, advisor at consulting firm Datum Intelligence. 'Platforms in their hypergrowth phase tend to ignore that their customers are capable of looking beyond convenience." Zepto—which has raised more than $1.95 billion till date and is valued over $5 billion—is also re-evaluating its growth strategy to curb losses ahead of a public-market listing. The firm posted a loss of ₹1,248 crore in the financial year ended March 2024, while its revenue surged two-fold to ₹4,454 crore year-on-year. The firm has reportedly postponed its initial public offering (IPO) plans to 2026 as it focuses on cutting losses and raising another round of private funding. Earlier this week, Mumbai-based NBFC Elcid Investments pumped in ₹ 7.5 crore in the firm as part of a larger funding round, acquiring a 0.039% stake. In May, Zepto also scaled down its 10-minute food delivery service Zepto Cafe in several cities in north India, following challenges surrounding sourcing of material and shortage of trained kitchen staff. The firm has also slowed down the expansion of dark stores. Super saver feature Swiggy Instamart and Zepto's basket-building feature was introduced to enlarge cart sizes and therefore reduce costs per order. Swiggy introduced 'Maxx Saver' in April, unlocking discounts on orders above ₹999. Zepto's Super Saver was rolled out in September 2024, offering discounted prices on orders crossing ₹399. Within three months of launch, Swiggy's move bore fruit. In the quarter ended June, the firm's average order value in quick commerce reached ₹612 from ₹527 in the previous quarter. According to the company, nearly 28% of its 11.1 million monthly transacting consumers now use the feature. Through the feature, Swiggy and Zepto aim to become the mainstay for planned purchases, mirroring the convenience and value of modern retail giants like D-Mart that drive monthly stock-up habits. Moreover, stiff competition from market leader Blinkit—whose average order value exceeds its rivals at ₹670—is pushing them to win more consumers fast. 'This confirms our belief that as quick-commerce becomes more well-entrenched and goes deeper into the pop [population] strata, providing cart-level value (without significant and perpetual subsidies) is a key lever for sustainably opening up the market further by building habits for stock-up purchases," Swiggy said in its letter to shareholders on Thursday. However, the moves can cause significant pressure as firms need to compromise margins to fuel discounts, ultimately denting profitability. An HSBC report from March said these value-oriented programmes can squeeze Ebitda margins from 6% to 3%. Moreover, Blinkit's positioning as a premium convenience-led app instead of a value-led app will help it maintain market leadership, the report added. 'We can expect Swiggy and Zepto to spend more money on this feature in the next 2-4 quarters to counter intensifying competition. They want to create a perception that the experience they provide is similar to a modern retailer. Blinkit, on the other hand, is maintaining consistent service and pricing across geographies even without a loyalty program," said Datum Intelligence's Meena.
