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Datum Intelligence reports Indian online buyers lose about Rs 25000 to 28000 crore yearly to dark patterns, eroding trust and putting over Rs 55000 crore in GMV at risk
Dark Patterns Cost Indian Consumers Rs 28,000 Crore a Year, Report Finds
India’s rapidly expanding digital commerce ecosystem is facing a considerable financial loss, with deceptive interface designs, commonly known as “Dark Patterns”.
According to a report by Datum Intelligence titled ‘Dark Patterns in India’s Online Marketplaces’, Indian consumers are losing an estimated Rs 25,000-Rs 28,000 crore annually due to dark patterns, with 88% of the country’s 304 million online buyers losing an estimated Rs 78-87 per month.
Beyond direct losses, these practices are also triggering major behavioral shifts among consumers, putting more than Rs 55,000 crore in Gross Merchandise Value (GMV) at risk as users reduce spending, compare more aggressively, or switch platforms altogether.
The report reveals that 63% of online payment users now experience hidden charges or drip pricing during digital transactions – a significant increase from 52% reported in 2024. The findings suggest that existing regulatory interventions have so far had limited success in curbing deceptive digital practices that continue to impact millions of consumers across e-commerce, banking, travel, ride-hailing, insurance, online payments, and digital lending platforms.
The report highlights how dark patterns have evolved into a systemic issue across India’s digital ecosystem. Current survey findings show that 73% of platforms deploy forced action mechanisms, compelling users into actions they may not otherwise choose, while 69% continue using drip pricing tactics that reveal additional fees only at the final stage of checkout. More than half of platforms surveyed were also found to use bait-and-switch tactics, where advertised offers differ materially from the final product, pricing, or service presented to consumers.
The report, conducted in Q1 2026, surveyed over 2,590 consumers across 50 cities and assessed 12 leading platforms across quick commerce, e-commerce, and online travel – including BigBasket, Zepto, Swiggy Instamart, Blinkit, Amazon, Flipkart, Myntra, Nykaa, MakeMyTrip, EaseMyTrip, ixigo, and Cleartrip, on the frequency of dark patterns, their financial impact on consumers, and the extent of trust erosion, forming a 92-point gap between the best and worst performing platforms. As per its findings:
● In e-commerce, Amazon stands alone on consumer trust where users naming it most-trusted (50%). Flipkart, Myntra, and Nykaa all show net distrust; Flipkart’s gap (41% least trusted vs 37% most) is the narrowest but is driven by higher per-encounter financial extraction.
● In Online Travel, Cleartrip ranks among the most harmful platforms, while MakeMyTrip is perceived as the safest, with a net positive trust deficit.
● In Quick Commerce, BigBasket records one of the highest severity scores.
It estimates that 88% of India’s 304 million online buyers lose approximately Rs 78–87 per month due to hidden charges, forced add-ons, subscription traps, drip pricing, and false urgency cues. Beyond direct losses, these practices are also triggering major behavioral shifts among consumers, putting more than Rs 55,000 crore in Gross Merchandise Value (GMV) at risk as users reduce spending, compare more aggressively, or switch platforms altogether.
The combined impact of direct financial loss and changing consumer behavior shows that dark patterns are no longer just a consumer protection concern, but a broader macroeconomic challenge affecting the long-term sustainability of India’s digital commerce ecosystem. The report also highlights a major “awareness paradox” among Indian consumers. While 81% of respondents said they were aware of dark patterns, 85% still reported being misled by them. The findings also point to a growing “trust economy,” with 74% of consumers indicating they are willing to pay more for platforms that commit to fair and transparent design practices. At the same time, users also plan to cut spending on online platforms, most sharply in Online Travel, where spending could decline by up to 15%.
The Grey Zone: Aggressive Marketing Meets Ambiguous Regulation
The report flags a growing concern around the ambiguity of current definitions and enforcement standards. Industry stakeholders argue that several practices now falling under scrutiny often exist in a grey zone between legitimate commercial persuasion and deceptive manipulation.
The report warns that this lack of definitional precision risks creating confusion for businesses attempting to comply in good faith while allowing genuinely deceptive actors to exploit the same ambiguity. The next phase of India’s regulatory framework must focus on creating clearer, measurable distinctions between deceptive design intended to mislead consumers and legitimate commercial communication intended to persuade them. The broader objective should not be to eliminate persuasion from digital commerce altogether, but to ensure that persuasion never crosses into deception.
Without clearer distinctions between deceptive manipulation and legitimate commercial persuasion, businesses may continue to face uncertainty around compliance standards and enforcement expectations. The report points to the European Union’s Digital Services Act as a potential reference model, where clearer distinctions are drawn between deceptive design and legitimate commercial communication.
The broader concern, however, remains consumer trust. Continued exposure to hidden charges, sneaked fees, forced actions, and manipulative interface designs will gradually weaken confidence in India’s digital economy at a time when digital commerce adoption is accelerating across both urban and emerging markets. With major e-commerce sales around the corner, it will be interesting to see how consumers respond to dark patterns and whether brand trust influences their purchasing decisions.
The Path Forward
Datum’s report proposes a 36-month implementation roadmap.
• Phase 1 (0-6 months) needs no new legislation: ban pre-selected insurance and add-ons at checkout, mandate all-inclusive pricing in search results, activate existing CCPA powers, and stand up a fast-track complaint portal with 30-day resolution mandates.
• Phase 2 (6-18 months) builds the audit infrastructure, including sector-specific standards, quarterly UX transparency reports for platforms above ₹500 Cr GMV, a graduated penalty structure modelled on the EU’s 6% / UK’s 10% turnover caps, and an ethical-design certification with safe harbour.
• Phase 3 (18-36 months) makes the framework permanent through annual third-party UX audits, a public benchmarking index, curriculum integration, and alignment with global standards.
As enforcement intensifies across the CCPA, RBI, IRDAI, and the Competition Commission of India (CCI), the report concludes that the next phase of India’s digital consumer-protection journey will depend not only on stronger penalties, but also on creating clearer, more precise, and consistently enforceable definitions around dark patterns and deceptive design practices, while industry stakeholders must strengthen consumer safeguards and deliver a more transparent and trustworthy shopping experience.
About the Author
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the I…Read More
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