The government plans to act against e-commerce companies after getting complaints about them breaking dark pattern rules during festive sales. The Central Consumer Protection Authority (CCPA) is investigating and will take action against those who violate the rules.
E-commerce tricks to mislead consumers through dark patterns
According to Economic Times, an official of CCPA said, “We have received several complaints about companies not following dark patterns which we are examining.”
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With more people getting the internet and smartphones, e-commerce has quickly grown in the country over the past decade. To rush or mislead customers into buying things, online platforms use certain design elements like Dark patterns as a trick.
Meanwhile, the Centre has received complaints from offline retailers about e-commerce players breaking rules and using dark patterns. To tackle this, the government issued guidelines last year to regulate dark patterns and stop e-commerce companies from misleading customers.
E-commerce giants Amazon and Flipkart are under radar of CCI
In May 2024, reports said the government was planning to launch an app to warn customers about dark patterns. This is part of increasing scrutiny of ecommerce platforms in the country. Amazon and Flipkart, two e-commerce giants, are already being investigated by the Competition Commission of India (CCI) for alleged unfair trade practices. A recent report found Amazon and Walmart-backed Flipkart guilty of breaking competition laws.
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Despite this, ecommerce remains a great opportunity for startups and businesses. On September 19, ET noted that e-commerce businesses and brands are expected to reach $12 billion in Gross Merchandise Volume (GMV) this festive season, a 23% increase from last year’s $9.7 billion.
Notably, the sector has produced 25 unicorns and 18 soonicorns. According to an Inc42 report, India’s ecommerce market is expected to grow at 19% annually, reaching $400 billion by 2030, up from $116 billion in 2023.
