The Consumer Affairs Ministry has initiated a crackdown on hidden charges imposed by e-commerce companies on cash-on-delivery (COD) orders. Following numerous complaints from consumers, the ministry has started investigations into misleading business practices that may be harming online shoppers in India.
Government Action & Investigation
The Department of Consumer Affairs is actively probing allegations that e-commerce platforms are adding extra fees on COD orders. Minister Prahlad Joshi called this practice a “dark pattern,” a method deliberately used to mislead consumers.
Though specific companies under investigation have not been officially named, complaints highlight platforms like Flipkart, where users reported multiple hidden charges including:
Offer Handling Fee
Payment Handling Fee
Protect Promise Fee
Similarly, Amazon charges a fixed ₹5 Marketplace Fee per order, even for Prime members, according to its support page.
Consumer Complaints & Helpline
The government has urged affected consumers to register complaints through the National Consumer Helpline (1915) if they notice misleading or hidden charges.
Fast-commerce platforms such as Swiggy and Zomato have also come under scrutiny for additional fees applied even to premium subscription users. Since September 21st, the department has received 3,981 complaints, including issues where companies did not reduce MRPs despite GST rate reductions.
Impact on E-Commerce Sector (H3)
This investigation is seen as a major step toward transparency in the booming Indian e-commerce market. Authorities have promised to expedite investigations and ensure that online shopping becomes more reliable and consumer-friendly.
Experts say this move could lead to stricter regulations, improved pricing clarity, and higher accountability for companies exploiting hidden charges in COD transactions.
Conclusion
The ongoing probe by the Consumer Affairs Ministry signals a strong message to online marketplaces: hidden fees and misleading charges will no longer be tolerated. Shoppers are now empowered to report violations, potentially transforming India’s e-commerce landscape into a transparent and trustworthy market.
