The Centre has begun investigating e-commerce platforms for levying extra charges under various names — particularly for customers who prefer paying by cash on delivery. Union consumer affairs minister Pralhad Joshi revealed on X that a detailed probe is underway after complaints surfaced about platforms collecting hidden fees such as “offer handling fee”, “payment handling fee”, and “protect promise fee”.
The issue came to light when a consumer posted a breakdown of additional charges online, prompting the minister to respond that imposing extra fees for cash on delivery could amount to “dark patterns” — practices that mislead or exploit consumers. Joshi said these charges will now come under close scrutiny and warned that “strict action will be taken” against violators.
Dark patterns are deceptive online tactics designed to nudge customers into making unintended choices. For example, fake countdown timers that create false urgency, or claims that items are “selling out soon” even when they’re not. These strategies, although subtle, are banned under Indian consumer protection laws for being manipulative.
The timing of this probe is significant. With the festive shopping season peaking in October, millions of Indians are turning to e-commerce platforms for deals and discounts. The government appears to be sending a signal that “creative” fee structures won’t go unchecked — especially when customers might not fully understand the fine print behind delivery or payment charges.
This isn’t the first time the government has acted on misleading pricing. In September, the Central Consumer Protection Authority (CCPA) fined Digital Age Retail Pvt Ltd — which runs baby products brand FirstCry — ₹2 lakh for displaying “MRP inclusive of all taxes” but adding extra GST at checkout. Authorities said the move created a “false impression of higher discounts” and confused buyers about the actual price.
Officials have reminded all e-commerce companies to ensure transparency and avoid misleading customers. While the final outcome of the current probe remains to be seen, industry observers believe it could push platforms to rethink their pricing and fee policies.