E-commerce platforms are charging extra for cash on delivery (COD): Hidden fees are also being added in the final stages of orders; the government says this is wrong, and an investigation has been launched.

The government has launched a formal investigation into the extra charges levied on cash on delivery orders by e-commerce platforms. Consumer Affairs Minister Prahlad Joshi wrote in a social media post, “The extra charges levied by e-commerce platforms on COD are a kind of ‘dark pattern.’ Following complaints received this year, the department has intensified the investigation.”

According to Joshi, overcharging for COD is an example of drip pricing, one of 13 dark patterns under the Consumer Protection Act. In July, complaints surfaced on social media against platforms like Zepto, which added ‘cash handling fees’ at checkout.

The minister said, “The platforms will be thoroughly investigated. Strict action will be taken against those violating consumer rights to ensure transparency in e-commerce.”

These dark patterns are increasingly common.

Drip pricing: Adding hidden charges at the final stage of an order.

False urgency: False messages like “Only 1 item left.”

Subscription traps: Uncancellable memberships.

These practices violate regulations, including extra charges on COD. If found guilty during an investigation, penalties and other actions may be taken under the Consumer Protection Act.