• Source:JND

Following growing complaints about e-commerce platforms levying extra fees on cash-on-delivery (COD) orders, Consumer Affairs Minister Pralhad Joshi has initiated a probe, citing concerns that such practices may mislead consumers.

The probe comes after Pralhad Joshi responded to a viral social media post that exposed such charges, sparking public outrage and broader debate on so-called “dark patterns.” Users have alleged that these extra fees are often disguised under vague labels such as “payment handling” or “offer handling.”

What Prompted The Govt To Initiate Probe Against E-Commerce Sites?

- Earlier this week, a viral post on the social media platform X (formerly Twitter) drew widespread attention to a user’s complaint about an additional Rs 226 cash-on-delivery (COD) charge on a Flipkart order.

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- The fee breakdown included ambiguous terms such as “offer handling fee,” “payment handling fee,” and “protect promise fee”, prompting calls for government intervention.

- “Forget Rain Fee by Zomato/Swiggy/Zepto. See the masterstroke by Flipkart: Offer Handling Fee (for giving me the discount you advertised??); Payment Handling Fee (for letting me pay you??) and Protect Promise Fee (protecting me from what satisfaction?),” the user wrote on X.

‘Misleading and Exploitative’: Pralhad Joshi on Extra COD Charges

Responding directly to the viral post, the Union Minister wrote, “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.”

What Are Dark Patterns?

- Dark patterns refer to misleading design tactics or pricing methods that intentionally influence how consumers make purchases.

- For instance, some online platforms exaggerate scarcity by showing only one or two units of a product are left, even when plenty of items are in stock, to pressure buyers into hasty purchases.

- They may also set artificial deadlines, like a countdown saying “offer expires in 10 minutes,” creating a fake urgency to push buyers towards quicker, less-considered choices.

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With a growing number of Indians turning to online shopping, transparency in billing has become a major concern for them. Although many e-commerce platforms promote digital payments, imposing extra charges on COD orders has been widely criticised as unfair and deceptive.