iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

The government requests that e-commerce businesses stop deceiving customers by adopting dark patterns

3 Jul 2023 , 11:25 AM

Top online retailers like Amazon, Flipkart, Nykaa, BigBasket, Reliance Retail, Swiggy, and Meesho have received a letter from the Ministry of Consumer Affairs (MCA) requesting that they cease utilizing dark patterns to deceive customers as this is an unfair business practice.

According to Rohit Kumar Singh who talked to ET, secretary of the Department of consumer affairs, which is part of the Ministry of consumer affairs, the department is also developing guidelines to discourage the use of dark patterns.

In order to address the problem, the agency has urged the sector to self-regulate and create ethical design standards; otherwise, the offense would be punished as unfair trade practices.

Dark patterns refer to the use of a design and choice architecture to deceive, compel, or persuade customers to make decisions that are not in their best interests.

In a letter to the sector dated June 28, the secretary stated, ‘Engaging in such deceptive and manipulative conduct by using dark patterns in online interfaces constitutes ‘unfair trade practice’ under the Consumer Protection Act, (2019).’

The letter continued, ‘Therefore, I firmly urge you to refrain from engaging in any design or pattern in the online interface of your platform that may deceive or manipulate consumer choice and fall under the category of dark pattern.’

Dark Patterns are user interfaces designed to sway people into making decisions that aren’t in their best interests.

The ministry has identified 10 practices that fall under the category of ‘dark patterns,’ including fabricating a sense of urgency, slipping items into the final shopping cart, confirming shame, which involves shaming customers for not making a donation to charity, coercive action, including coercive signing up and nagging, subscription traps, interface traps, including making it difficult to leave a page, bait and switch, which refers to advertising one product while sending another, hidden fees, and disguised advertising.

With 759 million active Internet users in 2022, India has seen a growth in the use of smartphones and the Internet in recent years. By 2025, it’s anticipated that this would reach 900 million.

With this, the consumer digital economy in India is anticipated to increase from $537.5 billion in 2020 to a $1 trillion industry by 2030. This is a result of the widespread use of Internet services, making it crucial for the government to protect the interests of consumers.

For feedback and suggestions, write to us at editorial@iifl.com

Understanding E-commerce in India

Related Tags

  • Dark Patterns
  • e-commerce
  • India
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Most Read News

Top Stocks for Today - 29th April 2025
29 Apr 2025|06:38 AM
KPIT Tech Q4 Profit Jumps 31%
29 Apr 2025|12:04 AM
Sensex and Nifty in Green on April 28, 2025
28 Apr 2025|02:04 PM
Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.