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Consumer Affairs Ministry Scrutinizes Extra Charges on Cash-on-Delivery Orders

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New Delhi: India’s Consumer Affairs Minister Pralhad Joshi has announced action against e-commerce platforms that levy additional fees for cash-on-delivery (COD) orders, following complaints that such practices mislead consumers. The move comes in response to a viral social media post highlighting hidden charges under names like “payment handling,” “offer handling,” and “protect promise,” sparking widespread public concern.

The controversy began when a user shared that Flipkart charged an extra ₹226 for COD on an order. The breakdown included vague fees such as “offer handling fee” for advertised discounts, “payment handling fee” for processing payments, and “protect promise fee.” The post quickly went viral, drawing attention to similar practices by food and quick-commerce platforms.

Minister Joshi responded directly, stating: “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.” As online shopping grows in India, transparency in billing has become a significant concern, especially when COD—a widely used payment method—incurs hidden penalties.

Experts explain that such practices are examples of “dark patterns,” deceptive design strategies used to manipulate consumer behavior. Examples include falsely indicating low stock to prompt faster purchases or setting misleading time limits on offers to create urgency, ultimately influencing buying decisions unfairly.

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