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Why Indian govt is probing extra charges for cash-on-delivery orders by e-commerce platforms
Central government has launched an investigation into e-commerce platforms due to growing consumer complaints about extra charges on COD orders
India's consumer affairs minister Pralhad Joshi recently announced action against e-commerce platforms that charge extra fees for cash-on-delivery (COD), a practice now under official scrutiny for allegedly misleading consumers.
The action follows the union minister's response to a viral social media post that exposed such charges, sparking public outrage and a broader discussion on what is being described as "dark patterns."
These extra charges are often hidden behind vague names such as "payment handling" or "offer handling", users have alleged.
How controversy began over COD charges
Earlier this week, a post on the social media platform X went viral, citing a user's concern about an additional ₹226 COD charge on an e-commerce order from Flipkart.
The breakdown included terms like “offer handling fee”, “payment handling fee”, and “protect promise fee”.
"Forget Rain Fee by Zomato/Swiggy/Zepto. See the masterstroke by Flipkart: Offer Handling Fee (for giving me the discount you advertised??); Payment Handling Fee (for letting me pay you??) and Protect Promise Fee (protecting me from what satisfaction?)," the user wrote, also jibing at extra fees changed by quick-commerce or food-delivery apps.
What minister said on COD charges
Union minister Joshi replied directly to the post: “The Department of Consumer Affairs has received complaints against e-commerce platforms charging extra for Cash-on-Delivery, a practice classified as a dark pattern that misleads and exploits consumers.”
As more Indians rely on online shopping, transparency in billing has become a major consumer concern. While many e-commerce platforms encourage digital payments, adding penalties for opting for COD, a widely used option, is being seen as unfair and misleading.
What are 'Dark Patterns'?
Dark patterns are deceptive design techniques or pricing strategies used to manipulate consumer behaviour.
These practices include platforms that show there is only one or two pieces of an item left to speed up a buyer's purchase decision, when in reality, there are several more in stock, or setting a fake time limit, such as ‘offer expires in 10 minutes’, to achieve the same end.
