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India's CCPA Penalizes Zepto Over 'Dark Patterns'
5 Dec
Summary
- Zepto fined ₹700,000 for using deceptive 'dark patterns'.
- Practices included misleading price disclosures and basket sneaking.
- CCPA order cited violations of the Consumer Protection Act, 2019.
India's top consumer watchdog, the Central Consumer Protection Authority (CCPA), has imposed a ₹700,000 penalty on quick commerce platform Zepto. The action was taken for utilizing 'dark patterns,' including misleading price disclosures and basket sneaking, which violate provisions of the Consumer Protection Act, 2019. This marks the second company penalized following notices issued to various e-commerce platforms concerning deceptive online practices.
The CCPA's order detailed how Zepto displayed lower initial prices, only to increase the final cost at checkout through undisclosed mandatory charges like handling fees and membership fees. These practices, identified as drip pricing and basket sneaking, were found to impair consumers' ability to make informed choices. Despite Zepto's arguments about disclosed fees and seller charges, the CCPA concluded that these violations constituted unfair trade practices.
This penalty underscores the CCPA's commitment to enforcing fair-trade practices in India's burgeoning e-commerce sector. The authority has directed Zepto to cease using dark patterns, ensure upfront disclosure of all charges, and redesign its interface to comply with consumer protection norms within 15 days. Similar actions have previously been taken against other platforms like Rapido, emphasizing a stricter regulatory stance on deceptive online designs.
