Cash-on-delivery (COD) is a widely used payment option in online shopping, but some e-commerce companies have started adding extra ‘cash handling charges’ on COD orders.
After receiving several complaints, the government has begun investigating these practices, calling them a dark pattern—a deceptive tactic that secretly forces customers to pay more.
What Are COD Charges and Why Are They Added?
COD lets customers pay by cash or digitally at the time of delivery, offering ease and trust.
However, courier partners often demand extra fees for handling cash and managing risks. These are called COD charges or cash handling fees.
Many companies add them at the last step of checkout using drip pricing, leaving buyers unaware until payment is due.
How Do Dark Patterns Work?
Dark patterns are tricks used online to mislead or pressurize users. Examples include hiding extra charges, pre-checked boxes for consent, or false warnings like “Only 1 left” to push quick purchases.
In India, the government recently banned 13 such dark patterns, calling them “unfair trade practices.”
Why Is This a Big Concern?
A report shows that 52 of the top 53 apps in India use at least one dark pattern. This means hidden fees, fake alerts, or misleading designs are very common.
Since COD is more popular in smaller towns and cities, customers there face a higher risk of being overcharged.
What Action Has the Government Taken?
The government has directed companies to audit their apps and websites. It also plans to set up a joint working group.
Platforms found guilty of using dark patterns could face penalties, mandatory design changes, or stricter regulations.
