The Department of Consumer Affairs has penalized nine digital platforms following a comprehensive investigation into unfair trade practices, specifically targeting the use of “dark patterns” to inflate consumer costs. The regulatory action focuses on deceptive design choices, including the implementation of hidden handling charges and “basket sneaking,” where platforms manipulate the checkout process to add unauthorized costs or items to a user’s order.
Among the penalized entities, quick-commerce giant Zepto was cited for the imposition of undisclosed handling charges, while the ticketing platform BookMyShow was flagged for “basket sneaking”—the practice of automatically adding supplementary services or products to a digital shopping cart without the explicit consent of the consumer.
The crackdown is part of a broader strategic initiative by the Indian government to strengthen consumer safeguards within the digital economy. By penalizing these platforms, regulators aim to eliminate deceptive design patterns that mislead users into making unintended purchases or paying fees that were not transparently disclosed at the start of the transaction.
The Mechanics of Deception: What Happened
The investigation conducted by the Department of Consumer Affairs focused on the user interface (UI) and user experience (UX) journeys of several high-traffic digital platforms. The findings revealed a systemic use of dark patterns—interfaces designed to trick users into doing things they did not intend to do.
In the case of Zepto, the regulator found that the platform added handling charges to orders. These charges often appear at the final stage of the checkout process, after the consumer has already invested time in selecting items and navigating the app, creating a psychological “sunk cost” that makes the user more likely to accept the additional fee rather than abandon the order.
BookMyShow was specifically penalized for “basket sneaking.” This occurs when a platform adds a secondary product—such as insurance, a convenience fee, or a promotional add-on—into the digital basket by default. To remove these items, the consumer must actively find the “remove” button or uncheck a pre-selected box, effectively shifting the burden of effort from the seller (to gain consent) to the buyer (to deny it).
While the total number of penalized platforms stands at nine, the focus on Zepto and BookMyShow highlights the prevalence of these tactics across different sectors, from the high-speed delivery of groceries to the entertainment and ticketing industry.
Why It Matters: The Impact on the Digital Consumer
This regulatory intervention is significant because it addresses the “invisible” costs of the digital economy. While a single handling fee or a small add-on may seem negligible on an individual basis, the cumulative effect across millions of transactions represents a substantial transfer of wealth from consumers to platforms through non-transparent means.
Furthermore, these practices erode trust in the digital ecosystem. When consumers realize that the price displayed on a product page is not the price they pay at checkout, it creates a friction-filled experience that undermines the perceived efficiency of e-commerce.
From a regulatory standpoint, this move signals that the Indian government is no longer viewing “user experience” as a purely corporate prerogative. By defining these design choices as “unfair trade practices,” the Department of Consumer Affairs is asserting that the architecture of an app or website is subject to consumer protection laws.
Analysis: Shifting the Regulatory Paradigm
The penalties imposed on Zepto and BookMyShow signal a decisive shift toward stricter enforcement of consumer protection laws in India’s rapidly expanding digital marketplace. For years, the growth of the “app economy” was characterized by a laissez-faire approach, where platforms were given wide latitude to experiment with “growth hacks” to increase Average Order Value (AOV) and conversion rates.
The current crackdown suggests that the regulatory environment is moving toward a mandatory “explicit opt-in” model. In this framework, any cost beyond the base price of the product or service must be clearly disclosed and actively accepted by the user.
By targeting “basket sneaking,” the government is attacking a core component of modern conversion rate optimization (CRO). Many platforms use pre-checked boxes because data shows they significantly increase the attachment rate of add-on services. However, the Department of Consumer Affairs is now prioritizing transparency over platform profitability. This creates a precedent where “frictionless” checkout—if achieved through deception—is legally indefensible.
Background and Context: The Rise of Dark Patterns
The concept of “dark patterns” has become a global focal point for consumer rights advocates. These patterns are not accidental design flaws but are intentional psychological triggers. Common examples include “confirmshaming” (making the user feel guilty for opting out) and “roach motels” (making it easy to get into a subscription but nearly impossible to cancel).
In India, the Central Consumer Protection Authority (CCPA) has previously issued guidelines to prevent and regulate dark patterns. The current penalties are the enforcement phase of those guidelines. The government has identified several categories of dark patterns, including:
1. False Urgency: Creating a fake sense of scarcity (e.g., “only 2 items left!”) to rush a purchase.
2. Forced Action: Requiring a user to perform an unrelated action to complete a primary task.
3. Subscription Traps: Making it difficult to cancel a recurring payment.
4. Hidden Costs: Adding taxes or fees only at the final step of the transaction.
The inclusion of quick-commerce platforms like Zepto in this crackdown is particularly timely, as the sector has seen explosive growth and intense competition, often leading companies to seek aggressive ways to monetize their user bases.
What to Watch Next
The industry should expect a ripple effect from these penalties. Other digital platforms—including food delivery apps, travel aggregators, and fintech services—will likely audit their checkout flows to avoid similar sanctions.
Key areas to monitor include:
– Compliance Audits: Whether platforms move toward a “clean checkout” model where all fees are listed upfront.
– Further Penalties: Whether the Department of Consumer Affairs expands its probe into other forms of dark patterns, such as deceptive subscription renewals.
– Legal Challenges: Whether the penalized platforms challenge the definition of “unfair trade practices” in court, arguing that such charges are necessary for operational sustainability.
Conclusion
The penalization of nine digital platforms, including Zepto and BookMyShow, marks a critical juncture in India’s digital consumer rights movement. By targeting the subtle but pervasive tactics of basket sneaking and hidden charges, the government is sending a clear message: the convenience of the digital economy cannot come at the cost of transparency. As the digital marketplace continues to evolve, the burden of honesty is shifting back to the platforms, ensuring that the final price paid by the consumer is the price they actually agreed to.
Sources:
Hindustan Times: https://www.hindustantimes.com/india-news/zepto-added-handling-charges-bookmyshow-pulled-up-for-basket-sneaking-why-9-platforms-were-penalised-101785985095308.html
Corrections
If you believe this article contains an error, contact Herald Express with the source URL and supporting evidence.
Story synopsis gathered from: Hindustan Times – India News — source
