In a decisive move to safeguard consumer rights, Union Consumer Affairs Minister Pralhad Joshi announced on Friday that the government will enforce strict measures against e-commerce platforms engaging in deceptive practices and imposing unjust fees on consumers. This announcement follows increasing concerns about hidden charges by online retailers, which have been described as "dark patterns" that exploit consumers and contravene fair trade principles.
The issue gained attention on social media platform X, where a user criticized e-commerce giants for adding multiple hidden charges under various labels such as "offer handling fee," "payment handling fee," and "protect promise fee." The user compared these charges to the controversial "rain fee" imposed by some food delivery apps, calling it a "masterstroke" by companies like Flipkart. This post highlighted the frustration of consumers who feel deceived by these additional costs, which are often not clearly disclosed at the time of purchase.
Minister Joshi emphasized that the Department of Consumer Affairs has already received numerous complaints regarding Cash-on-Delivery (COD) charges and has initiated a detailed investigation into the matter. "Platforms are being scrutinized closely, and any violation of consumer rights will invite strict action to ensure transparency and uphold fair practices in India's growing e-commerce sector," he stated.
Government's Broader Consumer Protection Efforts
The government's focus extends beyond unfair charges. It is also closely monitoring how e-commerce companies pass on Goods and Services Tax (GST) benefits to consumers. The Consumer Affairs Department, through the National Consumer Helpline, has successfully resolved 3,981 GST-related complaints, underscoring the government's commitment to ensuring that tax benefits are properly transferred to consumers. This initiative is expected to boost demand and strengthen domestic growth by ensuring that consumers receive the full benefits of GST reforms.
India's GST collections have shown a robust increase, reaching Rs 1.89 lakh crore in September, marking a 9.1 percent year-on-year growth. This is the fastest pace in four months, indicating a positive trend in the country's economic recovery. Officials believe that by ensuring tax benefits are passed on to consumers, the government can further stimulate demand and contribute to the nation's economic growth.
The crackdown on unfair trade practices is part of a broader effort by the government to protect consumers from hidden charges and ensure that the e-commerce sector operates fairly. The Central Consumer Protection Authority (CCPA) is actively monitoring grievances to ensure transparency and protect consumers from misinformation. "The CCPA is closely monitoring grievances -- ensuring transparency, protecting consumers from misinformation and guaranteeing that the benefits of GST reforms truly reach every Indian," Joshi reiterated.
