Indian e-commerce users lose up to Rs 28,000 crore annually due to fraudulent digital practices: Report
The report highlighted that the present regulations have only partially succeeded in stopping dishonest online tactics that still impact a significant portion of customers
The fraudulent internet design strategies, also known as “dark patterns”, are estimated to cost consumers between Rs 25,000 and Rs 28,000 crore annually, according to Datum Intelligence Report.
As per the report titled ‘Dark Patterns in India’s Online Marketplaces’, nearly 88% of India’s 304 million e-commerce users incur extra expenses of approximately Rs 78-Rs 87 each month as a result of activities like hidden fees, mandatory add-ons, drip pricing, fake urgency prompts, and subscription traps.
The report highlighted that the present regulations have only partially succeeded in stopping dishonest online tactics that still impact a significant portion of customers. It demanded enforceable regulations on dark patterns and more severe penalties for dishonest digital practices.
About 2,590 customers in 50 cities, over 63% of online shoppers experienced “hidden charges” or “drip pricing”, in which additional expenses are only apparent at the very end of the checkout process. Compared to the 52% reported in 2024, this is a notable increase.
Additionally, the study found that 73% of the platforms under investigation employ forced-action strategies, which force users into making decisions they might not have otherwise taken.
Half of the consumers surveyed said they favoured Amazon, which makes it the most trusted platform among e-commerce companies, the report outlined.
Furthermore, it stated that the only site where distrust (41%) was higher than trust (37%) was Flipkart, which the study linked to a higher perceived financial impact on users. Cleartrip was one of the most problematic online travel platforms, while MakeMyTrip was thought to be the safest. BigBasket had one of the highest severity ratings for dark-pattern usage in the quick-commerce market.
Additionally, the study highlighted what it called an “awareness paradox”. Even though 81% of respondents said they knew what dark patterns were, 85% acknowledged that they have nevertheless been duped or persuaded by such tactics.
Also, it noted that 74% of online buyers believe they would be willing to pay more to use platforms that adhere to fair and transparent design principles, indicating a strong customer demand for openness.
