SDG 12: Responsible Consumption | SDG 16: Peace, Justice & Institutions
Institutions: Ministry of Consumer Affairs, Food & Public Distribution
The Central Consumer Protection Authority (CCPA), acting under the Consumer Protection Act, 2019, has ruled that “drip pricing”-advertising prices as tax-inclusive but adding GST at checkout-constitutes both an unfair trade practice under Section 2(47) of the Act and a dark pattern as defined by the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
The case involved M/s Digital Age Retail Pvt. Ltd. (FirstCry), which reduced actual discount benefits through such pricing practices (a claimed 27% discount became ~18.2% after GST). The CCPA imposed a ₹2 lakh penalty and directed the company to clearly display both original and discounted prices inclusive of all taxes, while also disclosing additional charges such as shipping. FirstCry has since updated its platform to comply.
This ruling marks a significant precedent in India’s digital consumer protection regime, aligning statutory provisions with emerging regulatory tools against manipulative design practices. By integrating Section 2(47) of the Consumer Protection Act, 2019 with the 2023 Dark Patterns Guidelines, regulators are setting the stage for stricter oversight across e-commerce, travel, fintech, and subscription-based services.
What is drip pricing? → A deceptive pricing method where add-on costs (taxes, fees) are revealed only at checkout, creating the illusion of a lower upfront price.
What is a dark pattern? → A manipulative design tactic in digital platforms that nudges users into choices they might not otherwise make-such as hidden fees, auto-renewals, or misleading discounts.
Relevant Question for Policy Stakeholders:
Could this combined use of statutory law and guidelines become a model for tackling dark patterns across India’s wider digital economy?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2171807