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What’s behind the order to clean up dark patterns? – Crypto News

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The Central Consumer Protection Authority (CCPA) has directed over 50 digital platforms to remove dark patterns and complete self-audits within three months. What are dark patterns, and why is the CCPA sounding the alarm? Mint explains.

What are dark patterns?

Dark patterns are deceptive practices used on websites or apps of digital platforms to influence users into actions they may not have planned. These tricks are designed to benefit the platform at the user’s expense, and can lead to a financial loss for the user. Dark patterns could include a range of actions like requiring users to submit unrelated private details to continue, enabling automatic renewal of subscription without user-consent or making it hard for the user to unsubscribe, adding new items or increased quantity of a selected item without consent, showing ads disguised as content, among others.

What’s the CCPA advisory?

The Central Consumer Protection Authority last week issued an advisory to e-commerce platforms, urging them to take concrete steps to eliminate unfair trade practices that fall under the category of dark patterns. The advisory called upon platforms to conduct self-audits within three months of the issue of the advisory to identify such practices and submit a self-declaration stating that they are not involved in dark patterns. This move comes in the wake of growing regulatory scrutiny, with the CCPA having already issued 11 notices related to dark patterns, according to Consumer Affairs Secretary Nidhi Khare.

Which are the companies under the lens?

Notices went out to e-commerce firms, travel aggregators, food-tech platforms, ride-hailing firms, meditech start-ups, streaming services, and fintech firms. Companies include Amazon, Flipkart, Meesho, Paytm, Uber, Apple, Meta, Nykaa, Zomato, Swiggy, Tata 1mg, BookMyShow, BigBasket, Namma Yatri, and Snapdeal among others.

How would it monitor dark patterns?

The consumer affairs ministry has set up a joint working group (JWG) to strengthen oversight of dark patterns. Comprising key ministries, regulators, consumer rights groups and law universities, the JWG has been tasked with identifying violations, monitoring compliance with dark pattern guidelines, and recommending enforcement actions. It will also propose consumer awareness initiatives and policy measures aimed at curbing deceptive practices and promoting a fairer digital marketplace.

Have there been any earlier guidelines?

The Consumer Protection (E-Commerce) Rules, 2020 mandate that platforms must obtain user-consent through “clear and affirmative” action. Meanwhile, the Consumer Protection (Direct Selling) Rules, 2021 hold entities directly accountable for engaging in deceptive or misleading trade practices. In 2023, the CCPA introduced the Guidelines for Prevention and Regulation of Dark Patterns, aimed at curbing 13 manipulative design tactics such aw ‘false urgency,’ which pressures users into immediate purchases.

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