Government Investigates E-Commerce Platforms Over Cash-on-Delivery Charges

The Indian government has initiated an investigation into major e-commerce platforms for allegedly charging customers additional fees for Cash-on-Delivery (CoD) transactions. Consumer Affairs Minister Pralhad Joshi termed these charges as “dark patterns,” which mislead and exploit consumers. The Department of Consumer Affairs (DoCA) has received multiple complaints highlighting these practices, leading to a formal probe into the matter.

The Issue at Hand

E-commerce giants such as Amazon, Flipkart, and FirstCry have been accused of imposing extra fees on CoD orders. These fees, which range from ₹7 to ₹10, are added during the checkout process and are not always clearly disclosed to customers. For instance, a screenshot shared by a consumer on social media revealed charges like “Offer Handling Fee,” “Payment Handling Fee,” and “Protect Promise Fee” on a Flipkart order. Such practices have raised concerns about transparency and consumer rights.

Government’s Response

Minister Joshi emphasized that the government is committed to ensuring fair trade practices and protecting consumers from deceptive tactics. He stated that strict action would be taken against platforms found violating consumer rights. The DoCA is closely scrutinizing these platforms to determine the extent of the issue and to enforce necessary regulations.

Implications for Consumers and E-Commerce

CoD remains a popular payment method in India, especially in Tier 2 and Tier 3 cities, where digital payment infrastructure is still developing. The imposition of additional charges on CoD orders could discourage consumers from using this payment option, potentially affecting sales for e-commerce platforms. Moreover, such practices could erode trust between consumers and online retailers, impacting the overall growth of the e-commerce sector.

Conclusion

The government’s investigation into CoD charges by e-commerce platforms underscores the need for greater transparency and fairness in online retail practices. As the probe unfolds, it is essential for both consumers and businesses to stay informed about their rights and obligations to foster a more equitable digital marketplace.