Strict action against e-com platforms violating consumer rights: Pralhad Joshi

New Delhi, Oct 3 (IANS) Union Consumer Affairs Minister Pralhad Joshi on Friday said that strict action will be taken against e-commerce platforms that mislead consumers and charge unfair fees such as extra costs for Cash-on-Delivery (COD).

He said such practices amount to “dark patterns” that exploit buyers and go against fair trade principles.

The minister was responding to a post on social media platform X, where a user highlighted how e-commerce players often add multiple hidden charges in the name of “offer handling fee”, “payment handling fee” and “protect promise fee”, calling it a “masterstroke” similar to the controversial “rain fee” charged by some food delivery apps.

“Forget rain fee by Zomato/Swiggy/Zepto. See the masterstroke by Flipkart: offer handling fee (for giving me the discount you advertised??). Payment handling fee (for letting me pay you??). Protect promise fee (protecting me from what… satisfaction?),” the user said.

Joshi said the Department of Consumer Affairs has already received complaints against COD charges and has begun a detailed investigation.

“Platforms are being scrutinised 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 stressed.

The government has been keeping a close watch on e-commerce platforms in recent months.

It is not only monitoring unfair charges but also keeping an eye on how these companies pass on Goods and Services Tax (GST) benefits to consumers.

The Consumer Affairs Department, through the National Consumer Helpline, has already resolved 3,981 GST-related complaints.

Authorities are also checking whether online platforms selling FMCG goods like shampoo, pulses, and daily essentials are complying with GST rate cuts.

“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 said earlier.

India’s GST collections touched Rs 1.89 lakh crore in September, up 9.1 per cent year-on-year (YoY) -- marking the fastest pace in four months.

Officials said ensuring that tax benefits are properly transferred to consumers will help boost demand and strengthen domestic growth.

With stricter monitoring and a crackdown on unfair trade practices, the government aims to protect consumers from hidden charges while ensuring India’s booming e-commerce sector operates fairly.

--IANS

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