Govt eyes crackdown on ecommerce dark patterns amid festive shopping season

In December last year, the Consumer Affairs Ministry introduced rules defining 13 dark patterns in ecommerce, classifying them as violations of consumer protection laws

The government is preparing to take action against ecommerce companies after receiving numerous consumer complaints about misleading practices, commonly known as dark patterns, during the ongoing festive season sales, according to a report by The Economic Times.

The report quoted a senior official as saying that the government is reviewing several complaints regarding non-compliance with regulations on dark patterns. The Central Consumer Protection Authority (CCPA) is expected to act against violators.

In December last year, the Ministry of Consumer Affairs, Food and Public Distribution, which oversees the CCPA, introduced rules to curb deceptive behaviour in ecommerce by defining 13 dark patterns and categorising them as violations under consumer protection laws.

 

What are dark patterns?

Dark patterns refer to deceptive strategies used by online platforms to manipulate users. These tactics include adding extra items to a consumer's cart without their knowledge, creating a false sense of urgency by claiming limited stock availability or pressuring consumers into purchasing memberships.

These practices are considered unfair trade practices, and the government’s concern has grown as online shopping continues to expand rapidly in the country.

Dark patterns are essentially manipulative user-interface designs used by digital commerce companies and online advertisers to influence consumer decisions, often leading users to make choices they wouldn’t otherwise make but that benefit the business.

These techniques, most commonly seen in advertising, are employed to encourage consumers to spend more, share personal data, or make decisions based on misleading or paid-for reviews. Sectors such as fashion, personal care, ecommerce, food and beverages, and finance have reported the highest number of violations.

The festive season, a critical sales period in India, accounts for up to 35 per cent of annual revenue for many consumer-facing companies, including those in the automotive, consumer durables, apparel, beauty, and food and beverage industries, the report said.

As more consumers turn to online platforms for their purchases, major ecommerce companies launch annual sales during the festive season, offering significant discounts and a wide range of products to attract shoppers.

52 of 53 top apps employ 'dark patterns'

A study revealed that 52 out of 53 top apps surveyed in India were found to be using dark patterns for marketing purposes, with healthtech platforms leading the way, followed by travel and fintech apps.

These apps have collectively been downloaded over 21 billion times, with an average of 2.7 deceptive practices identified per app, according to the report titled "Conscious Pattern" by the Advertising Standards Council of India (ASCI) Academy and design firm Parallel HQ.

Healthtech apps showed the highest frequency of dark patterns, averaging 8.8 deceptive practices per app, followed by travel booking apps with 7.2, and fintech apps with 5.3. Notably, 75 per cent of healthtech apps relied on creating a false sense of urgency to pressure users into making quick decisions.