Battling Dark Patterns: Protecting Consumer Rights In India's Digital Landscape
The Department of Consumer Affairs (DoCA) and the Advertising Standards Council of India (ASCI) recently organised an interactive consultation with stakeholders on "Dark Patterns."
The event aimed to address the prevalence of manipulative practices in the online space that pose a significant threat to consumers and fall under the purview of Unfair Trade Practices and Misleading Advertisements of the Consumer Protection Act, 2019.
During the consultation, Rohit Kumar Singh, Secretary of DoCA, emphasised that consumers should not be coerced or directed towards unintended consequences without their express consent. He highlighted the importance of protecting consumer rights and ensuring that deceptive patterns that manipulate consumer choice and impede their access to accurate information are addressed. He expressed hope that the industry would self-regulate and collaborate with stakeholders to develop a comprehensive framework to protect consumers.
Dark patterns encompass a range of manipulative tactics such as drip pricing, disguised advertising, bait and click, choice manipulation, false urgency, and privacy concerns. These tactics infringe on consumer rights and prompted the collaborative efforts of DoCA and ASCI to tackle the issue. In the stakeholder consultation, self-regulatory measures were discussed across various sectors, including online shopping, e-ticketing, restaurants, and travel, with the aim of countering dark patterns.
The event recognized the importance of raising awareness among consumers about dark patterns, and it emphasized that small and medium-scale MSME merchants, who constitute a significant portion of online sellers, should also be made aware of these practices. The stakeholders agreed that the industry, along with all relevant parties, must develop a self-regulatory framework that represents all sectors, marking a crucial step forward in addressing the challenges posed by dark patterns.
To combat dark patterns, guidelines focused on handling them are set to be released within two months. The consultation also shed light on the rapid growth of the online space in India, with the number of internet connections reaching 830 million in 2021. India's consumer digital economy is expected to reach $1 trillion by 2030, driven by the strong adoption of online services like eCommerce and edtech.
Anupam Mishra, Joint Secretary of DoCA, presented a comprehensive presentation on dark patterns, which was unanimously appreciated by the stakeholders. He emphasized the threat that these patterns pose to consumers, including unintended purchases, addiction, overuse, and privacy violations. Manisha Kapoor, CEO and Secretary General of ASCI, highlighted the importance of addressing deceptive patterns in online advertising, as they mislead consumers, erode trust in brands, and compromise the online experience.
The consultation resulted in the exploration of self-regulatory measures across various sectors, aiming to prohibit specific kinds of dark patterns, foster consumer-friendly digital choice architecture, and empower regulators. Industry self-regulation also plays a pivotal role, and online platforms can establish ethical design guidelines that discourage the use of dark patterns. Conducting independent audits and providing users with tools and resources to make informed choices online are other potential solutions.
The stakeholders suggested that users should be encouraged to report instances of dark patterns, and platforms should establish clear channels for users to provide feedback and report manipulative practices. The consultation stressed the importance of raising awareness about dark patterns among consumers and small and medium-scale MSME merchants.
The event was attended by numerous industry stakeholders and top executives from nearly three dozen platforms, including Flipkart, Zomato, Amazon, Meta, Google, MakeMyTrip, Yatra, Snapdeal, Uber, Ola, Big Basket, Meesho, Pharmeasy, Tata 1mg, and Shiprocket. Associations such as the Retailers Association of India, NASSCOM, ONDC, and legal firm Khaitan & Co. also participated.
