Key Points

The Indian government is taking a strong stance against e-commerce platforms that impose hidden fees and misleading charges. Union Minister Pralhad Joshi has announced a comprehensive investigation into 'dark pattern' pricing strategies used by online retailers. The Department of Consumer Affairs is closely monitoring platforms to ensure transparency and protect consumer interests. These actions aim to create a fairer digital marketplace that genuinely benefits Indian consumers.

Key Points: Joshi Warns E-Commerce Giants on Hidden Consumer Fees

  • Government investigating e-commerce 'dark pattern' hidden charges
  • CCPA monitoring platforms for consumer protection
  • GST benefits tracking across online retail platforms
  • Crackdown on extra fees like COD and handling charges
2 min read

Strict action against e-com platforms violating consumer rights: Pralhad Joshi

Union Minister Pralhad Joshi targets e-commerce platforms' unfair charges, promising strict action against deceptive pricing strategies.

"Platforms are being scrutinised closely, and any violation of consumer rights will invite strict action - Pralhad Joshi"

New Delhi, Oct 3

Union Consumer Affairs Minister Pralhad Joshi on Friday said that strict action will be taken against e-commerce platforms that mislead consumers and charge unfair fees such as extra costs for Cash-on-Delivery (COD).

He said such practices amount to "dark patterns" that exploit buyers and go against fair trade principles.

The minister was responding to a post on social media platform X, where a user highlighted how e-commerce players often add multiple hidden charges in the name of "offer handling fee", "payment handling fee" and "protect promise fee", calling it a "masterstroke" similar to the controversial "rain fee" charged by some food delivery apps.

"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??). Protect promise fee (protecting me from what... satisfaction?)," the user said.

Joshi said the Department of Consumer Affairs has already received complaints against COD charges and has begun 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," he stressed.

The government has been keeping a close watch on e-commerce platforms in recent months.

It is not only monitoring unfair charges but also keeping an eye on how these companies pass on Goods and Services Tax (GST) benefits to consumers.

The Consumer Affairs Department, through the National Consumer Helpline, has already resolved 3,981 GST-related complaints.

Authorities are also checking whether online platforms selling FMCG goods like shampoo, pulses, and daily essentials are complying with GST rate cuts.

"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 said earlier.

India's GST collections touched Rs 1.89 lakh crore in September, up 9.1 per cent year-on-year (YoY) -- marking the fastest pace in four months.

Officials said ensuring that tax benefits are properly transferred to consumers will help boost demand and strengthen domestic growth.

With stricter monitoring and a crackdown on unfair trade practices, the government aims to protect consumers from hidden charges while ensuring India's booming e-commerce sector operates fairly.

- IANS

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Reader Comments

R
Rohit P
About time! E-commerce companies have been taking customers for granted. COD charges, handling fees, protection fees - it's like death by thousand cuts. Hope this brings some transparency. 👍
A
Aditya G
While I appreciate the government's intent, I hope this doesn't become another case of over-regulation that hurts genuine businesses. The focus should be on transparency, not punishing innovation. Let's see how this plays out.
S
Sarah B
As someone who shops online frequently, these hidden charges are the worst! You think you're getting a good deal and then at checkout - boom! Extra charges appear. Thank you Minister Joshi for addressing this issue. 👏
K
Karthik V
GST benefits should definitely reach consumers. Many times we see prices remain the same even after tax cuts. Good that government is monitoring this closely. Jai Hind! 🇮🇳
N
Nisha Z
"Protect promise fee" - seriously? What are they protecting us from? Their own service? 😂 These companies have become too clever with their fee structures. Hope this crackdown brings some sanity back to online shopping.

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