Indian govt probing extra charges for COD orders by e-commerce platforms

India's consumer affairs minister Pralhad Joshi has announced action against e-commerce platforms that charge extra fees for cash-on-delivery (COD). This practice has now come under official scrutiny for allegedly misleading consumers. The action follows the union minister's response to a viral social media post that exposed such charges, sparking public outrage and a broader discussion on what is being described as "dark patterns." These extra charges are often hidden behind vague names such as "payment handling" or "offer handling".

“The Department of Consumer Affairs has received complaints against e-commerce platforms charging extra for Cash-on-Delivery, a practice classified as a dark pattern that misleads and exploits consumers,” Consumer Affairs Minister Pralhad Joshi said in a post on X on October 3.

“A detailed investigation has been initiated and steps are being taken to scrutinize these platforms closely. Strict action will be taken against those violating consumer rights to ensure transparency and uphold fair practices in India’s growing e-commerce sector,” he added.

The ministry’s move comes amid growing scrutiny of deceptive digital practices, particularly in online commerce, where seemingly small charges or tweaks in checkout flows can have widespread impact.

The investigation follows consumer complaints received earlier this year, after some platforms started levying ‘cash handling fees’ on COD orders. One such instance gained attention in July, when Zepto users flagged the practice on social media and accused the platform of adding non-transparent charges at checkout.