Govt Investigates Amazon, Flipkart Over Deceptive Techniques To Sell During Festive Sales


Mohul Ghosh

Mohul Ghosh

Oct 13, 2024


The Indian government is planning a crackdown on ecommerce companies using deceptive techniques, known as dark patterns, to manipulate consumers during festive season sales. These unfair trade practices have triggered complaints, leading the Central Consumer Protection Authority (CCPA) to take action against offending companies. With online retail growing rapidly, the crackdown aims to safeguard consumers from misleading tactics.

What Are Dark Patterns in Ecommerce?

Dark patterns refer to manipulative design strategies used by ecommerce platforms to mislead or pressure consumers into making decisions they wouldn’t normally make. Examples include sneaking additional items into carts, creating a false sense of urgency with statements like “only 1 item left,” or tricking consumers into purchasing memberships. Such tactics are categorized as unfair trade practices.

Government Action on Dark Patterns

The festive season in India, contributing up to 35% of annual sales for many companies, has prompted a surge in consumer complaints about these deceptive practices. The Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, is now examining numerous complaints and planning a crackdown on companies violating consumer protection laws.

The Ministry of Consumer Affairs had already defined and outlawed 13 dark pattern practices last December, marking them as offenses under consumer protection laws. These actions are part of a larger effort to curb deceptive online practices and safeguard consumer rights.

Categories Most Affected by Dark Patterns

Dark patterns are most prevalent in sectors like fashion, personal care, food and beverages, ecommerce, and finance. During the festive season, when ecommerce platforms run massive sale events to attract consumers with discounts, the use of dark patterns intensifies, leading to a spike in consumer complaints.

Online retailers use these manipulative tactics to encourage impulse buying, higher spending, or the sharing of personal data. As consumers increasingly shift towards online shopping, the government aims to address these concerns and ensure a transparent online retail environment.

Conclusion: Safeguarding Consumers

As ecommerce continues to grow in India, the government’s crackdown on dark patterns is a significant step towards protecting consumers from unfair trade practices. By holding ecommerce companies accountable, the CCPA seeks to create a safer and more transparent shopping experience, especially during the lucrative festive season sales.

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Mohul Ghosh
Mohul Ghosh
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