E-Com Cos Violating Dark Pattern Norms

India is yet to notify the Digital Personal Data Protection (DPDP) Act and rules are likely to be out in a month or so

Mandatory disclosure of algorithms is the need of the hour. Transparency in pricing algorithms can prevent artificial inflation of prices followed by ‘discounts’ designed to mislead consumers - Praveen Khandelwal, Secretary General, CAIT, tells Bizz Buzz

Bengaluru: E-commerce companies like Amazon and Flipkart should disclose algorithm behind discounts and disclosures that lure buyers to purchase a product on these platforms, trading bodies have demanded. According to trading bodies, e-commerce giants are violating dark pattern norms and luring users to purchase goods despite their lack of interest.

“Mandatory disclosure of algorithms is the need of the hour. E-commerce platforms should disclose algorithms behind discounts and promotions. Transparency in pricing algorithms can prevent artificial inflation of prices followed by ‘discounts’ designed to mislead consumers,” Praveen Khandelwal, Secretary General, Confederation of All India Traders (CAIT), a trading body, told Bizz Buzz. In the ongoing festive season, many complaints have been registered with the government regarding violation of dark pattern norms by global ecommerce giants. Dark pattern are deceptive or misleading techniques to lure buyers to purchase a product from the e-commerce platform though the customer has no real interest in undertaking the transaction.

Usual mode of dark patterns is adding something to customer’s cart during checkout though the buyer has never added that product to the checklist. Creating a false sense of urgency by showing that the offer will end soon or some similar techniques is also another method of dark pattern method to force customer to buy.

These tactics are considered unethical and undermine the integrity of the design process, leading to practices that supplement manipulation over genuine long- term user engagement.

These practices fall under ‘unfair trade practices’ category under Consumer Protection Act, 2019. Last year, the Department of Consumer Affairs, on November 30, 2023, issued ‘Guidelines for Prevention and Regulation of Dark Patterns, 2023’ under the Consumer Protection Act, 2019, identifying 13 common dark patterns prevalent in e-commerce applications and websites.

Trade bodies have also demanded strengthening of data privacy laws in order to control such dark pattern practices.

“Regulate data collection practices to prevent platforms from manipulating consumer behaviour based on purchase history, location, or browsing patterns. Implementing the Personal Data Protection Bill can protect consumer data from exploitation,” Khandelwal said.

India is yet to notify the Digital Personal Data Protection (DPDP) Act and rules are likely to be out in a month or so.

“Many dark patterns involve personal data, such as retargeting ads based on past behaviour or creating ‘fear of missing out’ (FOMO) through data-driven suggestions. Enhanced privacy regulations limiting how user data can be collected, shared, or used could significantly reduce the impact of dark patterns,” Khandelwal added.

In order to control the exploiting use of emerging technology like artificial intelligence (AI), the trade bodies have also demanded regular AI audits of ecommerce companies. “Since many e-commerce platforms rely on algorithms to tailor user experiences, government oversight could include periodic AI audits. This would help ensure that algorithms are not being trained to manipulate user behaviour in unfair ways, especially through subtle design elements that can influence buying decisions,” CAIT said.