Dark patterns cost Indian online shoppers up to ₹28,000 crore a year as regulatory scrutiny intensifies

India's online commerce industry may be racing towards a projected $266 billion market, but a growing trust deficit driven by deceptive design practices is threatening to slow that journey.

A new report by Datum Intelligence estimates that dark patterns across e-commerce, quick commerce and online travel platforms are extracting between ₹25,000 crore and ₹28,000 crore from Indian consumers every year through hidden fees, drip pricing, basket sneaking and other manipulative tactics. The report warns that an additional ₹55,000 crore in gross merchandise value (GMV) is at risk as consumers reduce spending, switch platforms or abandon them altogether.

The findings come at a time when India's broader digital economy is expected to reach $1 trillion by 2030, making consumer trust a critical pillar of future growth.

Based on a survey of more than 2,590 consumers across 50 cities and an assessment of 12 major platforms, Datum found that 88% of India's 304 million online buyers have encountered dark patterns. The average consumer loses between ₹78 and ₹87 every month because of such practices.

The report argues that the issue is no longer merely a consumer protection concern. It has evolved into a broader economic challenge. Between 36% and 45% of users said they had either reduced spending, used a platform less frequently or stopped using it altogether after encountering such practices.

Regulatory scrutiny gathers pace

The Central Consumer Protection Authority (CCPA) has steadily increased its focus on dark patterns since issuing formal guidelines in November 2023 that identified 13 deceptive practices as unfair trade behaviour.

Enforcement has accelerated over the past year. In December 2025, IPO-bound quick commerce platform Zepto was fined ₹7 lakh for drip pricing and basket sneaking, becoming one of the first major platforms to face penalties under the framework. The action came just six weeks after the company had submitted a self-declaration of compliance.

In January 2026, the CCPA imposed penalties totalling ₹44 lakh across multiple consumer harm cases. The largest penalties of ₹10 lakh each were imposed on Flipkart Internet, Meta's Facebook Marketplace and Meesho for violations ranging from misleading advertisements to unauthorised listings. Other entities including JioMart, Chimiya, Talk Pro and MaskMan Toys were also penalised.

According to the report, these actions signal that regulators are increasingly willing to intervene when consumer interests are harmed, even if violations extend beyond dark patterns alone.

Even recently, Reserve Bank of India (RBI) tightened its e-mandate framework, introducing pre-debit alerts and easier cancellation of recurring payments to improve user control.

Who are the biggest defaulters?

Datum's benchmarking index reveals significant variation in the severity of consumer harm across platforms.  Among e-commerce companies, Nykaa emerged as the worst-performing platform with a score of 99 on the report's 100-point scale, while Amazon recorded the lowest score of 6.7, making it the best-performing platform in the category.

The Benchmarking Index (B-Index) is Datum Intelligence's proprietary scoring framework used to measure the severity and impact of dark patterns across online platforms.

The report also flagged Flipkart , Myntra and Meesho for practices such as forced action and basket sneaking. Flipkart stood out as the only e-commerce platform where consumer distrust exceeded trust.

In quick commerce, BigBasket recorded the highest severity score at 98.5, while Blinkit emerged as the least harmful operator. Across the segment, false urgency tactics generated the highest individual pattern scores.

The online travel sector was similarly affected. Cleartrip ranked among the most harmful platforms because of convenience fees and drip pricing practices, while MakeMyTrip emerged as the safest operator in the category.

What India needs next

While advocating stronger enforcement, the report also argues that regulatory definitions need greater precision. It says the current framework often blurs the line between deceptive design and legitimate commercial practices such as flash sales, dynamic pricing and customer engagement tools. Without clearer standards, platforms risk over compliance, regulators may face accusations of selective enforcement and genuine consumer harm could become harder to identify.

To address the issue, Datum has proposed a 36 months roadmap that includes mandatory all-inclusive pricing disclosures, quarterly transparency reports, third party user experience audits and penalties linked to platform revenue.

The report's central warning is that trust has become the most valuable infrastructure in India's digital economy. As online commerce expands, platforms that rebuild consumer confidence and regulators that create clearer rules will shape the next phase of growth.