Hidden COD charges under fire: Govt launches probe into ‘Dark Patterns’ in e-commerce

The Department of Consumer Affairs has launched an investigation into e-commerce platforms charging extra fees for cash-on-delivery, terming it a misleading ‘dark pattern’ practice.

The Department of Consumer Affairs has initiated a probe into complaints against e-commerce platforms accused of charging hidden fees on cash-on-delivery (COD) orders. The action follows rising consumer backlash against ambiguous add-on costs billed under labels such as “offer handling fee,” “payment handling fee,” and “protect promise fee.”

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Union Minister Pralhad Joshi, in a sharp response on X, described these charges as “dark patterns” that mislead and exploit buyers. He assured consumers that the government would take strict measures to curb such unfair practices, reinforcing transparency and trust in digital commerce.

The issue gained attention when users flagged inflated COD bills, comparing them to gimmicky fees like the “Rain Fee” previously seen on food delivery apps. Critics argue that such charges unfairly penalise those who prefer COD, which remains one of India’s most popular payment methods.

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??)
• Protect Promise Fee (protecting me from what… satisfaction?)

Next up: “Scrolling… pic.twitter.com/DvUOSDgOS7

— Sidnan (@sidnan_s) October 1, 2025

Officials confirmed that the investigation aims to clamp down on deceptive practices, ensuring fairness in India’s booming e-commerce sector. By addressing consumer grievances, the government hopes to protect millions of online shoppers and strengthen confidence in digital transactions.