Zepto to IndiGo: 9 companies penalised by CCPA over manipulative online practices
Zepto to IndiGo: 9 companies penalised by CCPA over manipulative online practicesAI

The Central Consumer Protection Authority (CCPA) has penalised nine digital platforms, including IndiGo, Zepto, FirstCry, Physics Wallah and SpiceJet, for deploying "dark patterns", deceptive interface designs that manipulate consumer choices. Announced in the Rajya Sabha, the action marks one of India's most significant regulatory interventions against unfair digital trade practices.

The importance of this move lies not in the names of the companies, but in what it recognises. The greatest threat to consumer rights today is no longer misinformation or poor product quality. It is invisible manipulation embedded within the design of the digital marketplace itself.

Dark patterns are not software errors or poor user experience. They are intentional design strategies that exploit human psychology. Coined by user experience researcher Harry Brignull, the term describes digital interfaces engineered to push users towards decisions they neither intended nor fully understood. Whether it is a countdown timer creating false urgency, a pre-selected insurance option, hidden charges revealed only at checkout, or a subscription that can be activated in seconds but cancelled only after navigating multiple screens, the objective remains the same. Reduce deliberation. Increase conversion.

These practices succeed because they weaponise predictable human behaviour. Consumers respond instinctively to scarcity, convenience, social validation and fear of missing out. Behavioural economist Richard Thaler has long argued that public policy can use behavioural insights to help individuals make better choices. Dark patterns invert that principle. They exploit the very same cognitive biases to maximise corporate revenue rather than consumer welfare.

Artificial intelligence has dramatically expanded this capability. Modern digital platforms continuously analyse billions of interactions, testing colours, layouts, wording, notifications and button placements to identify which combinations generate the highest sales. Every click refines the algorithm. Every hesitation becomes behavioural intelligence. The consumer sees a simple interface. Behind it operates a sophisticated persuasion engine, learning in real time how to influence individual decisions.

Technology ethicist Tristan Harris has repeatedly warned that digital products increasingly compete by exploiting human attention instead of serving human interests. That warning has become especially relevant for online commerce, where success is increasingly measured not by product excellence but by the efficiency of behavioural manipulation.

The financial implications are enormous. India's digital economy is expected to approach one trillion dollars by the end of the decade. Millions of consumers book travel, order groceries, purchase financial products, pay bills and access education through digital platforms every day. Even a marginal increase in unintended purchases, hidden fees or unwanted subscriptions, when multiplied across millions of transactions, translates into a massive transfer of wealth from consumers to businesses. The profits arise not from superior products or innovation, but from carefully engineered psychological influence.

India deserves recognition for responding early. Its Guidelines for Prevention and Regulation of Dark Patterns identify thirteen prohibited practices, including false urgency, basket sneaking, interface interference, disguised advertisements and subscription traps. More importantly, the recent enforcement action demonstrates that these are no longer advisory principles. They have become enforceable standards of digital conduct.

Yet this must be viewed as the beginning rather than the culmination of regulatory reform.

For many large technology platforms, modest penalties are unlikely to outweigh the commercial gains generated by manipulative design. Enforcement must therefore become sharper, faster and more proportionate. Repeated violations should attract penalties linked to global turnover rather than fixed monetary amounts. Independent audits of digital interfaces should become as routine as financial audits. Companies should be required to publish annual transparency reports detailing interface changes, consumer complaints and corrective measures. At the same time, digital literacy programmes must equip citizens to recognise manipulation before they become its victims.

The challenge extends well beyond consumer protection. Dark patterns increasingly intersect with data privacy, competition law, artificial intelligence governance and algorithmic accountability. A platform that collects extensive behavioural data, predicts consumer vulnerabilities and uses those insights to shape purchasing decisions raises concerns that no single regulator can adequately address in isolation. India's digital governance architecture must therefore evolve towards coordinated oversight that reflects the interconnected nature of the modern technology ecosystem.

Ultimately, this debate is about trust.

Digital commerce thrives only when consumers believe that every click reflects an informed and voluntary choice. Every deceptive prompt, hidden charge and manipulated interface weakens that confidence. Once trust begins to erode, innovation itself loses legitimacy.

The CCPA's action is therefore far more than an enforcement exercise. It is a declaration that technological sophistication cannot become a licence for psychological manipulation. Markets flourish when competition rewards innovation, quality and transparency, not the ability to quietly influence consumer behaviour.

India has taken an important first step. The next challenge is to ensure that ethical design becomes the defining benchmark of digital commerce. In the economy of the future, the most valuable competitive advantage will not be a faster algorithm or a smarter interface.

It will be the trust that consumers place in it.

[Major General Dr. Dilawar Singh, IAV, is a distinguished strategist having held senior positions in technology, defence, and corporate governance. He serves on global boards and advises on leadership, emerging technologies, and strategic affairs, with a focus on aligning India's interests in the evolving global technological order.]