Consumer Affairs Minister Pralhad Joshi has said that the Department of Consumer Affairs will conduct a detailed investigation into the complaints received against e-commerce platforms.
Highlights
E-commerce companies have been accused of unfair business practices.
E-commerce giant Amazon also adds a fee to customer purchases.
It charges Rs 5 as 'Amazon Marketplace Fee' from all customers.
E-commerce platforms have grown rapidly in India over the past few years. However, e-commerce companies have also faced allegations of unfair business practices. The Department of Consumer Affairs has launched an investigation into alleged hidden charges levied by these companies on cash-on-delivery (COD) orders. These charges are typically levied during the checkout process on online retail platforms.
Consumer Affairs Minister Pralhad Joshi, in a post on the social media platform X , said that the Department of Consumer Affairs will conduct a detailed investigation into complaints received against e-commerce platforms. These complaints are related to COD orders placed through these platforms. Joshi described this as a 'dark pattern' that misleads and harms consumers. However, he did not specify which e-commerce platforms will be investigated. His post on X cites another user (@sidnan_s) who has posted a payment handling screenshot of the checkout screen on Flipkart. The image shows three fees charged on a purchase. These include the offer handling fee, payment handling fee, and protect promise fee.
Amazon , one of the largest e-commerce companies, also includes a fee in customer purchases. Amazon's support page states that it charges ₹5 as an "Amazon Marketplace Fee" from all customers. This includes those with an Amazon Prime subscription. The decision to investigate e-commerce companies indicates that customers may soon see more transparency when shopping through them. If customers have any complaints regarding incorrect charges, they can report it to the National Consumer Helpline by dialing 1915.
Quick-commerce companies Swiggy and Zomato also levy various charges before initiating payment. These charges are also borne by customers who subscribe to premium subscriptions of these apps. The Department of Consumer Affairs has informed that the National Consumer Helpline has received 3,981 complaints against various companies since September 21 regarding the reduction in the rate of Goods and Services Tax (GST). The department is taking action against companies that do not reduce the Maximum Retail Price (MRP) of their products after the reduction in the rate of GST.
