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1h ago

India Orders Probe Into Hidden CoD Fees on E‑Commerce Platforms

The probe tests whether late‑stage cash‑payment surcharges amount to drip pricing under India’s dark‑patterns rules.

The action follows the union minister's response to a viral social media post.
The move to scrutinise delivery and other fees by online platforms comes during the annual festive season when shoppers throng markets and online sales peak. (Representative photo)
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Overview

  • Consumer affairs minister Pralhad Joshi announced a detailed investigation after a viral X post showed add‑on charges labeled “offer handling,” “payment handling,” and “protect promise,” totaling Rs 226 on a Flipkart order.
  • Officials said the practice is classified as a dark pattern, with platforms warned of strict action if consumer rights are violated.
  • The inquiry is assessing how widely such charges are used and whether platforms clearly disclose the full price before checkout.
  • Reports cite CoD or convenience fees in the Rs 5–10 range on major services including Amazon, Flipkart, Myntra, and FirstCry, with Flipkart stating a Rs 5 CoD handling fee to cover operational costs.
  • Recent enforcement underscores the stance of regulators, with the CCPA fining Drishti IAS Rs 5 lakh for misleading ads and penalising FirstCry Rs 2 lakh last month for deceptive price displays.