Experienced a surge in airfares or hotel room tariffs after multiple searches? Survey reveals consumer struggles with ‘dark patterns’

India has taken a step towards consumer protection by banning the use of "dark patterns" across e-commerce platforms. The Central Consumer Protection Authority (CCPA) finalised guidelines earlier this month, aiming to curb deceptive tactics aimed at manipulating customers' choices. These guidelines follow a notification from the Department of Consumer Affairs in September, when draft guidelines were released for public consultation.

Dark patterns, besides misleading consumers, involve manipulating decision-making through deceptive advertisements and inducing unnecessary fear among customers to continue subscriptions or make purchases.

The CCPA categorises dark patterns as misleading advertisements, unfair trade practices, or violations of consumer rights, highlighting their detrimental impact on consumer decision-making.

The newly established guidelines apply to all advertisers, sellers, and platforms selling goods and services in India. The government has identified 13 types of dark patterns, encompassing practices like false urgency, confirm shaming, bait and switch, and more, which have been deemed unacceptable.

LocalCircles, a community engagement platform, has conducted an in-depth analysis of online travel platforms due to the high volume of consumer complaints.

Increasing Tariffs, Hidden Charges & More

Among the prominent issues reported by consumers on the LocalCircles platform are fluctuating airfares and hotel room tariffs during the browsing session. A substantial number of consumers felt that these changes seemed correlated with their search patterns or eagerness to book.

In a survey involving over 33,000 respondents across 323 districts of India, a staggering 74% of travel app users reported frequent fare or tariff surges within the same browsing session. Furthermore, 74% of those surveyed encountered situations where a false sense of urgency was created to hasten their booking process.

Another prevalent concern highlighted by the survey was the presence of hidden charges associated with flight tickets or hotel bookings, which were not disclosed upfront. 67% of consumers revealed experiencing such hidden charges during their transactions, significantly impacting the final cost.

Implications and Next Steps

The enforcement of these guidelines will be crucial in curbing the use of dark patterns across platforms. LocalCircles intends to present the survey findings to policymakers, urging collaboration between the government and platforms to eradicate dark patterns and ensure a more transparent and consumer-friendly environment.

The survey demographics showcased a diverse participation from across India, with 63% male respondents and 37% female respondents. Nearly half of the respondents were from tier 1 cities, while the remaining respondents represented tier 2, 3, 4, and rural districts.

While India takes a decisive stance against dark patterns, the spotlight now shifts to implementation and proactive measures by regulatory bodies to uphold consumer rights and create a fair marketplace for all.

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