Govt asks e-comm firms for self-regulatory framework to end ‘dark patterns’

Consumer Affairs Minister Rohit Singh said on Tuesday that the government has taken serious note of “dark patterns” and has asked e-commerce companies to create a self-regulatory framework to stop such practices.

Singh told reporters here after the stakeholder meeting that the e-commerce sector has the largest contribution to dark patterns, and the framework will be established in the next two months.

Dark patterns refer to practices that deliberately exploit online consumers, such as adding items to a shopping cart even though the user did not choose them, changing the price of a product at checkout or even creating a false sense of it. Urgency to make a purchase decision.

Singh, who was present at the two-and-a-half-plus hour meeting here, said he asked e-commerce players like Amazon, Flipkart, Swiggy and Zomato in collaboration with the Advertising Standards Board of India and some law firms to create a self-report. The regulatory framework to help curb such practices.

He said education and awareness are very necessary because, oftentimes, the consumer and the seller in a market like an e-commerce platform are not aware of the modus operandi used by brokers to increase sales or make a sale.

If such practices continue even after awareness and the establishment of a self-regulatory framework, the government may consider creating regulations on the matter, Singh said, adding that the laws governing consumer protection are very broad at present and dark patterns fall within their scope. Unfair business practices.

However, enforcing the law by acting against stray brands may backfire and thus, efforts are being made to take a phased approach for the time being.

Manisha Kapoor, CEO of Asci, said that the self-regulatory body in the advertising industry will issue its guidance on dark patterns soon, but added that this is a broader topic related to areas beyond advertising, such as transactions, subscriptions, and so on.

“Many (e-commerce companies) say we are markets and we don’t have full controls, but I think we will fight back,” she explained.

Singh also said that the government has made it clear to e-commerce companies like Amazon and Flipkart that consumers’ trust in a brand makes them shop on their platform and, therefore, they cannot evade responsibility and will have to share some of the responsibility if something goes wrong.

However, he distinguished between e-commerce players and state-promoted ONDC (Open Network for Digital Commerce), saying the latter is a protocol that contains all buyers and sellers as well as marketplaces like Amazon and Flipkart.