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India Opens Probe Into Extra Cash-on-Delivery Fees on E-Commerce Platforms

Officials have labeled the surcharges dark patterns under consumer law, signaling potential penalties for noncompliance.

Overview

  • Union Consumer Affairs Minister Pralhad Joshi said on Oct. 3 that a detailed investigation is underway into extra charges applied when customers choose cash on delivery.
  • The inquiry is assessing how widespread such fees are and whether platforms clearly disclose them upfront, with action possible under the Consumer Protection Act.
  • Reports cite itemised add-ons such as an ‘offer handling fee’, ‘payment handling fee’ and ‘protect promise fee’ totaling Rs 226 in one case, alongside routine CoD surcharges of about Rs 7–10 per order and a reported Rs 5 Flipkart handling fee.
  • The probe follows multiple consumer complaints and a viral X post highlighting opaque billing on a major platform, with cases flagged to the National Consumer Helpline.
  • The action builds on 2023 dark-pattern guidelines and recent enforcement, including penalties against FirstCry for misleading price displays and Drishti IAS for deceptive advertising, as regulators press platforms to self-audit.