Ordering groceries, booking flights or buying cosmetics online has become second nature for millions of Indians. But beneath the convenience lies an invisible tax. Consumers often do not notice it until the final payment page appears, a subscription renews automatically, or an “exclusive deal” turns out to be less attractive than advertised.
According to fresh research, these seemingly minor nudges are costing Indian shoppers as much as ₹28,000 crore every year. The damage, however, extends beyond money. It is beginning to erode trust, arguably the most valuable currency in India’s digital economy.
Dark Patterns Hit Consumers
A study by Datum Intelligence found that India’s 304 million online buyers collectively lose between ₹25,000 crore and ₹28,000 crore annually due to deceptive design practices known as dark patterns. The research surveyed 2,590 consumers across 50 cities and examined 12 major platforms spanning e-commerce, quick commerce and travel.
The findings suggest that 88% of consumers lose around ₹78 to ₹87 every month because of hidden charges, forced add-ons, subscription traps and misleading pricing tactics.
Individually, the amount may appear insignificant. At scale, it becomes a multi-billion-rupee drain.
This is why dark patterns are no longer merely a consumer rights issue. They are becoming an economic issue.
Hidden Charges Rising
Perhaps the most worrying trend is that these practices are becoming more common despite regulatory intervention.
According to the report, 63% of users now encounter hidden fees or drip pricing during transactions. In 2024, that figure stood at 52%.
Drip pricing refers to additional charges being revealed only at the final stages of checkout. Consumers often continue with the purchase because abandoning the transaction feels inconvenient after investing time and effort.
The study also found that 73% of platforms use forced actions that push consumers into choices they might not otherwise make. More than half employ bait-and-switch tactics where the final product, price or service differs materially from what was initially advertised.
The result is subtle manipulation rather than outright fraud.
Awareness Does Not Help
One of the most striking conclusions from the research is what it calls the “awareness paradox.”
Around 81% of respondents said they were aware of dark patterns. Yet 85% admitted they had still been misled by them.
This highlights an uncomfortable truth about behavioural economics. Consumers may understand that they are being nudged, but that knowledge alone does not necessarily prevent manipulation.
Dark patterns work because they exploit human psychology. Urgency messages, default settings and friction-filled cancellation processes are designed to influence behaviour rather than inform decisions.
In other words, consumers are not failing. The system is engineered to make resistance difficult.
Trust Is Becoming Scarce
The financial losses tell only part of the story.
Datum Intelligence estimates that more than ₹55,000 crore worth of gross merchandise value could be affected as consumers become increasingly cautious, compare prices more aggressively or migrate to competing platforms.
That should worry companies. Digital commerce runs on trust. Once consumers begin questioning every discount, timer and recommendation, transaction costs rise for everyone.
Interestingly, the study found that 74% of shoppers are willing to pay more for platforms that commit to transparent and fair design practices.
This suggests ethical design may eventually become a competitive advantage rather than a regulatory burden.
Government Has Responded
India has already moved to regulate the problem.
The Central Consumer Protection Authority issued the Guidelines for Prevention and Regulation of Dark Patterns, 2023, formally identifying 13 prohibited practices, including drip pricing, false urgency, disguised advertisements and bait-and-switch tactics. These practices are classified under unfair trade practices within the Consumer Protection Act, 2019.
However, enforcement remains challenging.
A LocalCircles study released in 2025 found that only 3% of examined online platforms were free from dark patterns despite government warnings and self-audit requirements. The survey incorporated feedback from over 250,000 consumers across 392 districts.
Recent actions indicate regulators are becoming more aggressive. Last week, the CCPA imposed a ₹5 lakh penalty on edtech platform PhysicsWallah over alleged dark patterns.
Meanwhile, the Reserve Bank of India proposed stricter norms in February 2026 aimed at curbing deceptive sales and mis-selling practices in banking and financial services.
Global Scrutiny Increasing
India is not alone.
Regulators worldwide are intensifying scrutiny. In Europe, consumer group BEUC recently filed a complaint against fast-fashion giant Shein, alleging manipulative tactics such as countdown timers, excessive notifications and addictive engagement mechanisms.
This reflects a broader shift.
For years, technology companies measured success through engagement, clicks and conversions. Regulators increasingly want platforms to be judged by transparency and fairness as well.
The definition of good design itself is evolving.
Ethics May Become Advantage
India’s digital economy has thrived because consumers trusted platforms with their money, data and time.
That trust should not be treated as an inexhaustible resource.
The latest research suggests that dark patterns extract more than a few rupees from shoppers. They weaken confidence in online marketplaces and threaten long-term growth.
Companies often view ethical design as a compliance exercise. They may be underestimating its business value.
In an increasingly crowded digital marketplace, transparency itself may become the premium product. And unlike hidden fees, trust cannot be added at checkout.
