E-commerce firms under govt lens for using 'dark patterns' to trick consumers: All about these illegal tactics

The Central Government is cracking the whip on e-commerce companies that use “dark patterns” and deceptive design tactics to manipulate consumers into unintended purchases or subscriptions.

The Consumer Affairs Secretary Nidhi Khare told news agency ANI that these practices will be treated as unfair trade and face legal scrutiny which can lead to strict action, including raids, against the violators of the guidelines set by the Department of Consumer Affairs.

Khare defined dark patterns as tactics such as using AI to create propaganda and misinformation, hiding negative reviews, false urgency alerts, subscription traps, and bait-and-switch pricing, among other such practices.

What are dark patterns?

According to the official, the Department of Consumer Affairs has brought out guidelines against the use of dark patterns and if someone is found to be using such prohibited dark patterns, then it will be treated as an unfair trade practice which will be liable to legal action.

These dark patterns also include not publishing bad reviews or de-emphasising them, which can lead to customers making purchases based on fake or paid reviews. “People rely on such reviews that they get on any online portal if they are buying food, shoes, footwear, products of well-being or wellness products,” Khare noted.

"Earlier, even if the consumer is giving a bad review for any product, the entity would not publish it or would publish it towards the end of it. And consumers can't go through the entire chain of all the reviews, and then most of us are basically relying on what the entity wants the consumers to show," she said.

Govt warns e-commerce firms

The department has advised e-commerce companies to sign a safety pledge to ensure that any product which is regulated or prohibited will not be sold on the respective platform, reported ANI.

"If that is being found to be selling, it is something which e-commerce entities need to be very, very careful. You must have seen how, in their warehouses, several raids have taken place and such products have been found which were not of the required standards," Khare noted.

The department has already held meetings with all the e-commerce entities to inform them about this situation and create awareness against such malpractices, ANI reported.

The Department of Consumer Affairs issued guidelines in November 2023, where it specified 13 specific dark patterns on e-commerce platforms. Since then, 11 notices have been issued for violations, including to companies like Zepto, Uber, and Ola.

Speaking of the development in the legal metrology in business and consumer protection, Khare said that the department is trying to see how there is a reduced compliance burden with the decriminalisation of various offences.

"We would want the dealers, the manufacturers or the sellers, all these people, to comply with the quality and the quantity. Legal metrology basically is an assurance of quantity and we will try to come up with such systems which can help in reducing the compliance burden to all these people," she said.

GST benefits

Khare also specified that the department is keeping a check on whether the companies are passing on the GST cut benefits to the consumers.

"We are basically assuring that the reduced GST benefit should go to the consumers. We are encouraging all the trade organisations, major ones like FICCI, CII, CAIT and such other associations to proactively ensure that the benefit of this reform GST should go on to the consumers," she told ANI.

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announced historic rate cuts recently, marking the biggest reform of the GST system since its introduction in India on July 1, 2017.

The reforms will apply in sectors such as healthcare and education, as well as daily consumption items which are set to benefit Indian consumers. The new rates will be effective from 22 September, the first day of Navratri.

Since then, various companies in sectors such as FMCG and automotive have announced that they are fully passing on the benefits to their customers, making their products cheaper for the common man.

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