A post on social media has prompted an investigation into the charges that the ecommerce platform levy on their customers for cash-on-delivery (CoD) orders. While most of the orders these days are prepaid, several users sometimes choose or mistakenly select the CoD option. In this, the payment is done once the order has been delivered. The payment is done in cash or through UPI directly to the delivery agent.

However, it has been noticed that the prices in CoD are slightly higher due to some additions. A user took to X and shared a similar concern. 

The user put out a screenshot of the order he placed and mentioned the kind of charges that the online platform, in this case Flipkart, levied on the order. 

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User highlights 3 different fees

Mentioning about the viral screenshots of Swiggy, Zomato levying rain fee, the user said he placed an order on Flipkart for Rs 30,999. As per the screenshot, a discount of Rs 6,000 reduced the price to Rs 24,999 and an additional Rs 1,000 discount brought it down to Rs 23,999.

However, the platform added ‘total fees’ of Rs 226 which included “Offer Handling Fee” of Rs 99, “Payment Handling Fee” of Rs 48 and “Protect Promise Fee” of Rs 79.

“Forget Rain Fee by Zomato/Swiggy/Zepto. See the masterstroke by Flipkart: Offer Handling Fee (for giving me the discount you advertised??), Payment Handling Fee (for letting me pay you??), Protect Promise Fee (protecting me from what… satisfaction?), Next up: “Scrolling App Fee”” the user said in the post.

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Minister takes cognisance

Union Minister of Consumer Affairs, Pralhad Joshi noted the post and reshared it on X. He said several complaints in this regard have been received by the Department of Consumer Affairs, and hence a detailed probe has been launched into the matter. 

He said the department has received complaints “complaints against e-commerce platforms charging extra for Cash-on-Delivery”, a practice, he said, “classified as a dark pattern that misleads and exploits consumers”.

Joshi said a detailed investigation has been initiated and steps are being taken to “scrutinise these platforms closely”. The minister said strict actions will be taken against those “violating consumer rights to ensure transparency and uphold fair practices in India’s growing e-commerce sector.”

What are ‘dark pattern’ fees?

While putting an order online, the consumers frequently come across messages like “only one item left”, “limited-time offer”, “offer ends in 15 minutes” and more. These tactics by the ecommerce platforms push consumers to decide upon purchasing products soon due to the fake urgency created by platforms. 

Sometimes people end up buying things they don’t want. These kinds of steps are not legal under Indian consumer law.

Most of the time, the platforms charge extra CoD fees, without showing all these charges upfront. This urgency along with hiding prices at one stage ultimately makes the customer pay extra – which the government is probing in this case.