New Delhi: In a move that could reshape the way India’s e-commerce giants charge customers, the central government has launched a formal investigation into extra fees levied on cash-on-delivery (COD) orders. The probe targets platforms like Amazon and Flipkart amid mounting complaints that these charges are unfair, opaque, and exploitative.
From Viral Post to Ministry Action
The investigation was triggered after a user’s viral post on social media exposed an additional ₹226 “COD charge” on a Flipkart order. The post detailed puzzling line items such as “offer handling fee,” “payment handling fee,” and “protect promise fee” — fees for services that many argue should already be part of the platform’s overhead or promotional cost.
In response, Union Minister Pralhad Joshi confirmed the Department of Consumer Affairs has begun receiving complaints over such practices. He described them as “dark patterns” — deceptive pricing or design strategies meant to mislead or push consumers toward certain choices.
What Are Dark Patterns — and Why They Matter
Dark patterns are marketing or UX techniques designed to manipulate consumer behavior, such as presenting false urgency, hiding costs until late in checkout, or nudging users toward costlier options. Critics say charging extra for COD — a widely used payment mode, especially in areas with low digital payment penetration — is a classic example of this.
What’s especially controversial is how such charges are disguised in cryptic labels and only disclosed late in the purchase journey, leaving few options for consumers to avoid them.