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Government Launches Probe into Extra Cash-on-Delivery Fees by E-Commerce Firms

India’s Consumer Affairs Department has begun investigating complaints that e-commerce companies are unfairly charging customers extra for choosing cash-on-delivery (CoD) payments 

04-10-2025
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The Department of Consumer Affairs has initiated a formal probe into growing complaints against major e-commerce platforms allegedly imposing additional fees on customers opting for cash-on-delivery (CoD).

The move follows a wave of public outrage after several shoppers reported being charged under unclear or misleading fee categories, raising concerns about transparency and consumer protection.

Union Minister Pralhad Joshi, reacting to these reports, condemned such practices as “dark patterns” — deceptive online design tactics meant to mislead users — and vowed strict action against violators. In a post on X (formerly Twitter), Joshi wrote that the government is committed to safeguarding consumer interests and ensuring fair, transparent pricing practices in India’s fast-growing digital marketplace.

The issue gained attention after a consumer shared a bill on X showing an extra ₹226 in arbitrary fees, labelled as “offer handling,” “payment handling,” and “protect promise.” The user drew parallels to other odd surcharges — such as “Rain Fees” seen on food delivery platforms like Zomato, Swiggy, and Zepto — highlighting how such charges often lack clarity or justification.

What Are Dark Patterns?

Dark patterns are deceptive user interface tactics designed to manipulate customers into taking actions they may not fully understand — such as paying hidden charges, sharing unnecessary data, or making unintended purchases. Common examples include fake scarcity warnings, countdown timers, and hidden service fees that appear only at checkout. Charging additional amounts for CoD payments under vague labels is increasingly viewed as part of this unethical trend.

The Indian government has previously cautioned e-commerce and digital service providers against these misleading practices. Authorities are now working on stronger regulatory measures to ban such tactics altogether.

Consumers who encounter unfair trade practices can file complaints using the Jagriti mobile app, which allows users to report violations directly to the Department of Consumer Affairs.

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