🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

Consumer Affairs Ministry probes Flipkart and Amazon over dark patterns

EntrackrEntrackr · 1m ago
Consumer Affairs Ministry probes Flipkart and Amazon over dark patterns
Medial

Following Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, the Department of Consumer Affairs (DoCA) has stepped up scrutiny of both platforms over alleged “dark patterns,” including extra charges for cash-on-delivery (COD) and hidden handling fees. Union Minister Pralhad Joshi said on Thursday that the ministry has received several complaints regarding additional costs imposed on consumers at checkout, despite advertised discounts. “Charging extra for COD is classified as a dark pattern that misleads and exploits consumers,” said Joshi, adding that a detailed investigation is underway and strict action will be taken against violators. The scrutiny is crucial, as millions of shoppers flocked to Flipkart and Amazon’s annual festive sale, often billed as the largest online retail events in India. Social media posts highlighted instances where platforms levy “offer handling fees,” “payment handling fees,” and “protect promise fees” on top of the discounted selling price. Such top ups charged by marketplaces effectively eroded the benefits of deals. This isn’t the first time dark patterns have drawn regulator ire. In 2023, the government issued guidelines prohibiting manipulative tactics like drip pricing, false urgency, and disguised ads. However, recent consumer feedback suggests platforms may be skirting these rules through creative fee structures. Besides Flipkart and Amazon, food and quick commerce majors such as Zomato, Swiggy, and Zepto have also faced criticism for tacking on unexplained charges. With festive season sales forming a major chunk of annual GMV for e-commerce firms, the government’s crackdown could have wide-ranging implications on platform margins and consumer trust.

The real reason you’re paying for so many subscriptions

LivemintLivemint · 1y ago
The real reason you’re paying for so many subscriptions
Medial

Many people overpay for unused subscriptions, a hidden force driving the subscription economy. Americans spend billions on forgotten subscriptions. A survey by West Monroe found Americans underestimated their monthly subscription spending, with an average guess of $96 when the actual average was $273. However, there's a growing trend of strategic subscription management, with nearly 25% of US subscribers canceling at least three services in the past two years. A study found that card replacements led to a sharp drop in subscription retention, highlighting the inertia in subscribers. Proposed solutions include prompting users to actively choose renewal periods and leveraging usage data for personalized subscription reminders. The Federal Trade Commission has proposed a rule for annual subscription reminders.

Government says 26 firms declare 'no dark patterns'

EntrackrEntrackr · 11d ago
Government says 26 firms declare 'no dark patterns'
Medial

Government says 26 firms declare 'no dark patterns' According to the Ministry of Consumer Affairs, companies including Flipkart, Amazon, Zepto, Myntra, MakeMyTrip, BigBasket, Swiggy, Zomato, and Meesho have completed internal or third-party audits and have declared compliance. The Ministry stated that 26 e-commerce platforms have submitted self-declarations affirming that their user interfaces are free from dark patterns. These actions follow the government's guidelines on preventing and regulating dark patterns, which are manipulative design practices that can mislead users during shopping or subscription processes. The Central Consumer Protection Authority stated that the declarations indicate a growing readiness among major digital platforms to adopt user-friendly and transparent interfaces. The regulator has also requested other platforms to publish similar declarations on their websites and conduct regular audits. This development arrives amid increased scrutiny of e-commerce platforms for deceptive design choices. Recently, the Department of Consumer Affairs initiated an inquiry into Flipkart and Amazon after discovering issues like extra charges for cash on delivery and hidden fees during checkout. Such surprise cost additions and confusing pricing formats can influence consumer choices and fall under identified dark pattern categories. Zepto faced criticism after users highlighted a design choice that inadvertently led customers toward higher delivery and handling fees. The company's co-founder and CEO Aadit Palicha acknowledged the issue, termed it a mistake, and stated that the feature was removed. With more platforms submitting declarations that they do not use dark patterns, the government emphasizes self-regulation and public disclosure as parts of its broader transparency framework for e-commerce. Recent regulatory steps signal that authorities continue to assess design practices that might affect consumer choices.

Download the medial app to read full posts, comements and news.