Dark Patterns: Centre Asks Online Platforms to Ensure Compliance

More customers are shopping online every day so addressing fraudulent digital strategies is more important than ever. In move to find and eliminate deceptive practices known as dark patterns, the Ministry of Consumer Affairs recently held a meeting with more than 50 significant e-commerce businesses and trade groups.

Representatives from Amazon, Flipkart, Google, Paytm, Zomato, and other major e-commerce companies attended the meeting. It also included significant industry entities such as CAIT, FICCI, NASSCOM, and PHDCCI, as well as consumer groups and national law universities.

Recently, it was reported that some platforms, allegedly including Kuku FM, were offering users Rs 1-2 trial periods and then auto-switching to paid plans like Rs 100-699/month without clear consent, often surprising users with unexpected charges.

What are Dark Patterns

Dark patterns are manipulative design techniques used by online platforms to mislead consumers into making unintended decisions. These tactics damage consumer trust and create unfair practices in digital markets. To counter this, the Central Consumer Protection Authority (CCPA) issued the Guidelines for Prevention and Regulation of Dark Patterns, 2023 in November 2023 which explicitly describe and prohibit the use of such methods across all platforms.

Ministry Calls for Stronger Online Consumer Protection

Union Minister Pralhad Joshi stated that today’s consumers are informed and won’t tolerate deceptive digital practices. He urged all e-commerce companies to strictly follow the Guidelines on Dark Patterns. He also directed digital platforms to audit their apps and websites for manipulative elements and submit reports to the Department of Consumer Affairs. “Companies must not wait for the CCPA to intervene. They should proactively remove such practices,” he said.

Joshi further highlighted the use of tech tools to combat these issues. He mentioned the Jagriti App, Jago Grahak Jago App, and the Jagriti Dashboard, developed in collaboration with IIT BHU. These tools enable users to report dark patterns and contribute to platform safety. He stated that these actions demonstrate the government's commitment to a fair and transparent digital marketplace.

Consumer Affairs Secretary Nidhi Khare noted the increase of dark patterns that mislead customers, emphasizing the importance of protecting consumer rights. She told reporters that the CCPA has issued 11 notices specifically for dark patterns and over 400 notices for unfair trade practices overall. She also noted the National Consumer Helpline’s key role in addressing consumer complaints.

Despite ongoing regulatory efforts, new complaints continue to highlight troubling practices in the digital space. A recent anonymous letter to the RBI raised concerns about apps like Kuku FM and Stage.

While Kuku FM co-founder Lal Chand Bisu told Outlook Money that cancellation instructions and payment terms are clearly disclosed. He stated that consumers may quickly cancel subscriptions using the app or payment services such as PhonePe and Paytm. Bisu also highlighted that refunds are processed quickly and users receive notifications including via WhatsApp, before payments are deducted.