The government has initiated a formal probe into e-commerce companies allegedly imposing hidden charges on customers opting for the cash-on-delivery payment method. Consumer Affairs Minister Pralhad Joshi confirmed that the investigation has been intensified following multiple consumer complaints, calling the practice “a kind of dark pattern.”
“Charging additional fees on COD by e-commerce platforms is a kind of dark pattern. The department has intensified its investigation following complaints received this year,” Joshi stated, adding that such deceptive methods violate transparency norms under the Consumer Protection Act, 2019.
The ministry clarified that adding hidden “cash handling fees” at the final payment stage amounts to drip pricing, one of the 13 dark patterns recognised as deceptive under the Act.
In July, social media users raised concerns against grocery delivery platform Zepto, where screenshots revealed an added “cash handling fee” at checkout. Similar practices have also been reported on Amazon, with invoices showing additional ₹10 charges for COD payments.
“Platforms will undergo thorough investigation. Strict action will be ensured against those violating customer rights, to maintain transparency in e-commerce,” Joshi assured.
The ministry is expected to summon representatives from the concerned platforms soon. If found guilty, companies may face hefty fines and corrective action under the Consumer Protection Act.
Drip Pricing: Adding hidden charges at the final stage of payment.
False Urgency: Showing misleading messages like “Only 1 item left” to pressure customers.
Subscription Traps: Making memberships or auto-renewals difficult to cancel.
Officials emphasised that adopting such patterns is a clear violation of consumer rights and transparency standards in online trade.
Know your rights as an online shopper
1. What should you do if you receive a defective or wrong product?
Take photos and videos of the product as evidence. Then, file a return or replacement request through the app or website. Most companies allow returns within 7–10 days.
2. Can you return a product without giving a reason?
That depends on the site’s policy. Some platforms offer ‘no-questions-asked’ returns within a fixed period, though categories like undergarments or custom-made items are often excluded. Always check the return policy carefully.
3. What if the company delays or denies a refund?
Keep all order receipts, screenshots, emails, and chats as proof. If the company continues to delay or deny a refund, you can lodge a complaint with the National Consumer Helpline (NCH) or the Consumer Commission under the Consumer Protection Act.
4. What precautions should you take while shopping online?
Shop only from trusted websites with secure HTTPS connections.
Read product descriptions and reviews carefully.
Compare prices across platforms before purchasing.
Use secure payment methods like credit cards or verified wallets.
Always read and understand return and refund policies in advance.
5. Do online shoppers have the same rights as offline buyers?
Yes. The Consumer Protection Act, 2019 extends full legal rights to online consumers. E-commerce platforms must ensure fair pricing, safe transactions, and transparent return policies, failing which they can be penalised.
As the government intensifies its scrutiny, platforms accused of hidden COD fees could face strict regulatory action. The Ministry of Consumer Affairs aims to make online shopping more transparent and free from manipulative pricing tactics, ensuring that customers get what they pay for and nothing more.
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