Over half of OTT users in India report 'dark patterns': LocalCircles

/ 2 min read
Summary

53% of respondents said they were not informed about additional rental fees for premium content, despite having an active subscription—a bait and switch tactic.

50% of users reported difficulty in cancelling subscriptions.
50% of users reported difficulty in cancelling subscriptions. | Credits: Sanjay Rawat

A nationwide survey conducted by LocalCircles has revealed that Over-the-Top (OTT) content platforms in India are increasingly employing deceptive tactics—commonly referred to as "dark patterns"—that manipulate consumer behaviour and violate user trust.

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The findings show that more than half of OTT users in India have faced unexpected rental charges or advertisements, despite having paid subscriptions, prompting concerns over regulatory non-compliance and consumer exploitation.

The survey, based on over 95,000 responses from users across 353 districts in India, identifies six prevalent dark patterns commonly reported by OTT users: subscription traps, bait-and-switch tactics, forced actions, SaaS billing, drip pricing, and interface interference.

Here are the key findings from the survey:

Subscription Cancellation Troubles
50% of users reported difficulty in cancelling subscriptions due to hidden or inaccessible cancellation options—classic indicators of a subscription trap.

Uninformed Rental Charges
53% of respondents said they were not informed about additional rental fees for premium content, despite having an active subscription—a bait and switch tactic.

Forced Actions for Access
77% experienced forced action, where they were made to install other apps or share unnecessary personal information just to access certain content. Some also faced sudden introduction of ads despite paying for an ad-free experience.

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Recurring Charges Post-Cancellation
24% claimed they were still charged even after cancelling services, an issue tied to SaaS billing dark patterns.

Hidden Final Charges:
47% of respondents reported drip pricing, where final charges included hidden fees not disclosed upfront during subscription.

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Manipulative Interfaces:
86% noted interface interference, where decline or cancellation options were either hard to find or deliberately less visible compared to subscription prompts.

The Central Consumer Protection Authority (CCPA) issued guidelines in November 2023 to curb 13 types of dark patterns. However, OTT platforms have largely dismissed these guidelines, claiming they apply to e-commerce and not content services.

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LocalCircles analysed over 230,000 consumer complaints and identified that drip pricing is present on 83% of OTT platforms studied. Subscription traps appeared on 75%, forced action on 67%, and interface interference on 58%.

“Consumers feel cheated,” the report noted, pointing out that users often migrate to OTT platforms expecting a break from ad-laden television viewing—only to find similar monetisation strategies in place, now under the guise of subscriptions.

Many users have begun viewing OTT services as an "extension of television, but with extra charges and less transparency," the report stated, warning that unchecked use of dark patterns could erode long-term consumer trust.

With the three-month compliance deadline from CCPA guidelines nearing in September 2025, LocalCircles has urged regulatory bodies to step in firmly and ensure that OTT platforms adhere to fair practices. The platform emphasised that regulatory enforcement is essential to protect digital consumers and uphold ethical standards in India's fast-growing streaming market.

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