The Department of Consumer Affairs has launched a probe into e-commerce platforms allegedly charging hidden fees on cash-on-delivery (COD) transactions. The move follows consumer complaints about unexplained charges added at checkout under terms like “offer handling fee,” “payment handling fee,” and “protect promise fee.”
The controversy gained traction after a shopper flagged his experience online, comparing these charges to “rain fees” used by some food delivery apps. The complaint sparked widespread criticism of companies imposing additional costs for choosing COD, a popular payment method in India.
Union Minister Pralhad Joshi called such practices “dark patterns” — manipulative tactics designed to mislead or exploit consumers. He assured strict action against violators, emphasizing transparency and fairness in digital commerce.
Dark patterns are tactics often used by online platforms to nudge users into unfavorable choices, such as fake scarcity claims, countdown timers, or hidden charges buried in checkout pages. Authorities say that charging extra for COD under ambiguous labels is one of the clearest examples of this exploitation.
The government has previously urged online marketplaces to stop deceptive practices and is considering stronger regulations to ensure consumer protection. Officials also reminded buyers that unfair trade practices can be reported through the Jagriti app, a platform for lodging complaints.
With India’s booming e-commerce sector handling millions of daily orders, the outcome of this probe is expected to set an important precedent. If violations are proven, companies may face penalties and be compelled to revise their checkout systems to comply with consumer rights guidelines.
The investigation highlights the government’s growing focus on curbing exploitative practices in online transactions and protecting buyers from hidden costs. For now, consumers are being urged to stay alert, review invoices carefully, and report any suspicious or unclear charges.