“Scrolling app fee next?” This viral complaint has triggered a government investigation into e-commerce platforms charging mysterious extra fees on Cash-on-Delivery orders. Here’s everything you need to know about dark pattern fees and the crackdown that’s shaking up India’s online shopping industry.
Table of Contents
Dark Pattern COD Fees: Key Investigation Details
| Detail | Information |
|---|---|
| Investigating Authority | Central Consumer Protection Authority (CCPA) |
| Minister | Pralhad Joshi (Consumer Affairs) |
| Issue | Extra charges on COD orders |
| Classification | Dark Pattern (unfair trade practice) |
| Examples | Offer handling fee, payment handling fee, protect promise fee |
| Status | Detailed investigation ongoing |
| Action Promised | Strict penalties for violations |
| Related Monitoring | GST benefit pass-through (3,981 complaints resolved) |
What Are Dark Pattern Fees?
Dark pattern fees are manipulative charges disguised through confusing labels or hidden during checkout. Think of them as digital tricks designed to extract extra money without clear justification.
Common Dark Pattern Fee Examples:
- Offer Handling Fee: Charging customers for applying advertised discounts
- Payment Handling Fee: Extra cost for paying (even though payment is mandatory)
- Protect Promise Fee: Vague protection charges without clear benefits
- COD Charges: Additional fees for choosing cash-on-delivery option
These fees prey on consumer confusion, adding costs at the last moment when shoppers have already invested time browsing and selecting products.
The Viral Post That Started It All
A social media user’s complaint went viral, exposing the absurdity of these charges on platforms like Flipkart. The post compared these fees to the infamous “rain fee” once introduced by food delivery apps, sarcastically asking: “offer handling fee (for giving me the discount you advertised??). Payment handling fee (for letting me pay you??). Protect promise fee (protecting me from what… satisfaction?)”
The post concluded with dark humor: “Next up: ‘Scrolling App Fee'”—highlighting how ridiculous these charges have become.
Government’s Swift Response
Union Consumer Affairs Minister Pralhad Joshi responded immediately on X (formerly Twitter), calling COD charges a “dark pattern that misleads and exploits consumers.”
According to Zee Business coverage, the Department of Consumer Affairs has already received complaints about COD-related charges and is carrying out a detailed investigation. “Platforms are being scrutinised closely, and any violation of consumer rights will invite strict action to ensure transparency and uphold fair practices in India’s growing e-commerce sector,” Joshi stated.
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Why COD Charges Are Problematic
Cash-on-Delivery has been a cornerstone of e-commerce adoption in India, particularly among customers without credit cards or those who prefer paying after inspecting products. Charging extra for this payment method:
- Discriminates against customers without digital payment options
- Contradicts advertised prices and promises
- Exploits lack of transparency in checkout processes
- Undermines trust in e-commerce platforms
Many consumers don’t notice these fees until reviewing their final bill, at which point canceling the order feels like wasted effort.
Broader Government Crackdown
The COD fee investigation is part of a larger consumer protection initiative:
GST Benefit Monitoring
The Centre is monitoring whether online retailers are actually passing on Goods and Services Tax (GST) benefits to buyers. Through the National Consumer Helpline, as many as 3,981 GST-related complaints have been resolved so far.
Fast-Moving Consumer Goods Checks
Officials are verifying whether products like shampoos, pulses, and daily-use items reflect GST rate cuts in their listed prices—ensuring tax benefits reach consumers rather than padding corporate profits.
CCPA Vigilance
“The CCPA is closely monitoring grievances — ensuring transparency, protecting consumers from misinformation and guaranteeing that the benefits of GST reforms truly reach every Indian,” Joshi noted.
What This Means for Shoppers
Immediate Impact:
- E-commerce platforms face increased scrutiny
- Companies may remove or clarify questionable fees
- Greater transparency in checkout processes expected
- Consumers empowered to file complaints
Long-Term Changes:
- Stricter regulations on fee disclosure
- Penalties for unfair trade practices
- Improved consumer protection enforcement
- More accountability in India’s booming e-commerce sector
How to Protect Yourself
While government action unfolds:
- Review final checkout carefully before confirming orders
- Screenshot unexplained fees for complaint documentation
- File complaints through National Consumer Helpline
- Compare total costs across platforms, not just base prices
- Choose platforms with transparent pricing policies
The Economic Context
In September, India’s GST collections hit Rs 1.89 lakh crore—up 9.1 per cent from a year ago, the fastest growth in four months. As the economy strengthens, authorities believe ensuring companies pass on tax benefits will boost consumer demand further.
By cracking down on unfair practices now, the government aims to ensure India’s e-commerce boom benefits consumers, not just corporations.
FAQs
Q: What are dark pattern fees in e-commerce?
Dark pattern fees are manipulative charges added by e-commerce platforms through confusing labels or hidden during checkout. Examples include “offer handling fees” (charging customers for applying advertised discounts), “payment handling fees” (extra costs for making mandatory payments), and additional COD charges. These fees exploit consumer confusion, adding unexpected costs after shoppers have invested time browsing, making them less likely to abandon their carts despite the unfair charges.
Q: What action is the government taking against COD charges?
The Central Consumer Protection Authority (CCPA) has initiated a detailed investigation into e-commerce platforms charging extra for Cash-on-Delivery orders. Consumer Affairs Minister Pralhad Joshi classified these charges as “dark patterns” that mislead and exploit consumers. Platforms are being scrutinized closely, with promises of strict action against any violations of consumer rights. The investigation is part of broader consumer protection efforts that include monitoring GST benefit pass-through and ensuring price transparency across the e-commerce sector.
