Indian online buyers are losing up to Rs 28,000 crore annually due to dark patterns and hidden charges, according to a recent report. The survey found that 63 per cent of online payment users now experience hidden charges or drip pricing, where additional fees are revealed at the checkout stage. This practice, often termed as dark patterns, manipulates user interfaces to trick consumers into making unintended purchases or paying extra fees.
Key Findings of the Report
The report highlights that drip pricing is the most common dark pattern, affecting a majority of online shoppers. Other prevalent tactics include forced continuity, where subscriptions auto-renew without clear consent, and confirm shaming, which uses guilt-inducing language to push users into purchasing. The financial impact on consumers is substantial, with losses estimated at Rs 28,000 crore annually.
Impact on Consumers
Consumers often feel deceived and frustrated when unexpected charges appear at the final stage of checkout. This erodes trust in online platforms and can lead to abandoned purchases. The report suggests that many users are unaware of these manipulative practices until they encounter them, highlighting the need for greater transparency in e-commerce.
Regulatory Response
In response to growing concerns, Indian regulators have started taking action against dark patterns. The Department of Consumer Affairs has issued guidelines to curb such practices, urging e-commerce companies to ensure clear and transparent pricing. However, enforcement remains a challenge, and consumer advocacy groups are calling for stricter penalties.
What Can Consumers Do?
To protect themselves, consumers are advised to carefully review the final bill before completing any online transaction. They should also be cautious of pre-checked boxes and opt-out options that are deliberately hard to find. Using price comparison tools and reading terms and conditions can help avoid hidden charges.
The report underscores the urgent need for both regulatory measures and consumer awareness to combat dark patterns in India's rapidly growing e-commerce sector.
