Nowadays cash-on-delivery (COD) payment is very popular in online shopping, but some e-commerce companies are charging ‘cash handling charge’ separately on COD orders. The government has started an investigation after receiving complaints about this, as such charge is considered a dark pattern i.e. “deceit or misleading strategy”, due to which customers have to make extra payments quietly.
What is COD charge and why is it charged?
Cash-on-delivery (COD) is the method in which the customer has to pay the order at the time of delivery or digital medium. Companies offer this option to ease use and assure customers. But the courier partner charges additional charge in the name of handling cash and managing risk, called ‘COD charge’ or ‘Cash handling fee’. Many times these charge is hidden under “drip pricing” in the last step of shopping, so that the customer is either not known or forced.
How does a dark pattern work?
Dark patterns are the weapon of the digital world, cheating the user. In this, the customer is forced to purchase early by showing messages such as hiding the charge, making the consent box in advance, or a false “1 product left”. The government in India has recently banned 13 such dark patterns as “unfair trade”.
Why is this problem big?
According to a report, 52 of the country’s top 53 apps receive at least one dark pattern. That is, hidden charges, fake pop-ups, or misleading designs are common everywhere. People in small towns and cities choose most cods, which increases the risk of their cheating.
What steps have the government taken?
The government has instructed companies to audit apps/websites and also plan to form a joint working group. If a platform used dark patterns, then fine, design changes or strict government rules can be implemented on it.