Government Launches Probe Into E-Commerce Cash-on-Delivery Charges

The Indian government has initiated an investigation into e-commerce platforms over allegations that they are charging customers extra for Cash-on-Delivery (CoD) transactions, a practice described by officials as a “dark pattern” that misleads consumers.

Consumer Affairs Minister Pralhad Joshi announced the move on the social media platform X (formerly Twitter), stating that complaints had been received about e-commerce platforms levying additional fees that violate consumer rights.

“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. A detailed investigation has been initiated and strict action will be taken against violators,” Joshi wrote.

Complaints and Fees Highlighted

The probe follows posts by consumers on social media highlighting extra charges on platforms like Flipkart, including:

• Offer Handling Fee – for applying advertised discounts

• Payment Handling Fee – for enabling payment options

• Protect Promise Fee – vague fee for consumer protection

One social media user sarcastically remarked: “Next up: Scrolling App Fee 💀,” highlighting growing consumer frustration over hidden or excessive charges.

Rise of ‘Dark Patterns’

A report by The Economic Times noted that e-commerce and food delivery platforms have increased platform fees ahead of festive sales. For instance, online fashion retailer Myntra reportedly raised its fee from Rs 20 to Rs 25 for some users.

“Dark patterns” are manipulative design tactics used to trick users into unintended purchases or make unsubscribing from services difficult, including:

• False urgency

• Subscription traps

• Drip pricing

• Disguised advertisements

In June 2025, the Central Consumer Protection Authority (CCPA) had directed e-commerce platforms to self-audit and eliminate dark patterns. Social media complaints, particularly against quick commerce app Zepto, prompted app redesigns promising “no hidden charges.” Despite this, some platforms continue to levy extra fees ranging from Rs 6 to Rs 30 per order on top of standard delivery charges.

The government’s investigation aims to scrutinize such practices closely and enforce consumer protection rules, ensuring transparency and fair practices in India’s rapidly growing e-commerce sector.