The Department of Consumer Affairs (DoCA) in India has initiated a formal investigation into numerous e-commerce platforms. The probe focuses on allegations that these platforms are levying hidden charges on customers who choose cash-on-delivery (COD) as their payment method for online purchases. These extra charges typically appear during the checkout process on retail websites. The investigation comes shortly after the National Consumer Helpline received thousands of GST-related complaints, prompting broader scrutiny of consumer issues.
‘Dark Patterns’ Identified in E-commerce Hidden Fees
Union Consumer Affairs Minister Pralhad Joshi announced a detailed investigation into complaints regarding these additional COD charges. He explicitly described this practice as a “dark pattern”—a deceptive design interface intended to trick or exploit consumers. Joshi emphasized that such practices mislead and exploit buyers.
While the Minister did not specifically name all e-commerce platforms under scrutiny, a social media post he highlighted included a screenshot from Flipkart, revealing several fees added to a single purchase. These included an ‘Offer Handling Fee,’ a ‘Payment Handling Fee,’ and a ‘Protect Promise Fee.’
Similarly, Amazon also applies a flat Rs. 5 ‘Amazon Marketplace Fee’ to all customer purchases, including those made by Amazon Prime subscribers.
Beyond traditional e-commerce, quick commerce applications like Zomato and Swiggy have also been observed adding various surcharges, such as a ‘rain fee,’ just before payment finalization. These fees are often applied even to customers who have paid for a premium subscription service.
This investigation also connects to a broader consumer protection effort. Recently, the Ministry of Consumer Affairs (MoCA) revealed that its National Consumer Helpline (operating the 1915 hotline) had received nearly 4,000 complaints since September 22. These complaints were related to businesses failing to reduce the Maximum Retail Price (MRP) of their products after Goods and Services Tax (GST) rate cuts came into effect on the same date. Officials confirmed that the helpline is actively working to address these issues and ensure businesses comply with tax reductions by adjusting product prices accordingly.