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Department of Consumer Affairs to Probe E Commerce Platforms Over Hidden Cash on Delivery Charges

Department of Consumer Affairs to Probe E-Commerce Platforms Over Hidden Cash-on-Delivery Charges

The consumer affairs ministry will probe e-commerce platforms that levy an additional fee on cash-on-delivery (COD) orders.

Written by David Delima | Updated: 3 October 2025 18:46 IST

Department of Consumer Affairs to Probe E-Commerce Platforms Over Hidden Cash-on-Delivery Charges

Photo Credit: Unsplash/ Vitaly Gariev

The DoCA has yet to clarify which e-commerce platforms will be probed for misleading customers

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Highlights

The consumer affairs ministry has launched a probe into e-commerce firms
Platforms that charge hidden COD fees will be investigated
Several online platforms levy additional fees charged at checkout

The Department of Consumer Affairs (DoCA) has launched a formal probe into e-commerce platforms for allegedly levying hidden charges when customers opt for cash-on-delivery (popularly known as COD orders) as the mode of payment when making a purchase online. These additional charges are usually added during the checkout process on online retail platforms. The investigation comes shortly after the National Consumer Helpline received thousands of GST-related complaints after the government slashed taxes on several goods ahead of the festive season in the country.

Hidden Charges on E-Commerce Platforms Classified as 'Dark Patterns'

In a post on X (formerly Twitter), Union Consumer Affairs Minister Pralhad Joshi said that the Department of Consumer Affairs will conduct a detailed investigation into complaints received against e-commerce platforms. These grievances are related to additional charges for COD orders on these services, and the minister called it a "dark pattern that misleads and exploits consumers".

The Department of Consumer Affairs has received complaints against e-commerce platforms charging extra for Cash-on-Delivery, a practice classified as a dark pattern that misleads and exploits consumers.

A detailed investigation has been initiated and steps are being taken to… https://t.co/gEf5WClXJX
— Pralhad Joshi (@JoshiPralhad) October 3, 2025

While the minister didn't specify which e-commerce platforms will be probed by the DoCA, his post on X quoted another user Sidnan (@sidnan_s) who posted a screenshot of a checkout screen on Flipkart. The image shows three fees levied on a single purchase, including an "Offer Handling Fee", "Payment Handling Fee", and "Protect Promise Fee".

It's worth noting that Amazon also includes a fee for customers who make purchases via the online marketplace. The platform's support website confirms that it charges a flat Rs. 5 "Amazon Marketplace Fee" for all customers, including those who have an Amazon Prime subscription.

Delhi High Court Orders E-Commerce Firms to Delist These Fake Products

Similarly, quick commerce apps like Zomato and Swiggy also add various charges (including a "rain fee") right before a payment is initiated, and these must also be paid by customers who have paid for a premium subscription.

On Thursday, the DoCA revealed that the National Consumer Helpline (which operates the 1915 hotline) has received 3,981 complaints against various companies since September 22, in connection with Goods and Services Tax (GST) rate cuts that went into effect on the same date.

At the time, the department said that the helpline is working to take action against businesses that fail to lower the maximum retail price (MRP) of their products after taxes are reduced.

Flipkart Turns to Videos, Livestream to Woo Indian Online Shoppers

The decision to probe e-commerce platforms is a sign that customers could see additional transparency while making purchases in the future. Meanwhile, customers can keep an eye out on the final price and breakdown of charges during checkout, before making any purchases online. They can also report instances of hidden charges on e-commerce platforms by contacting the National Consumer Helpline via the hotline.

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Further reading: Department of Consumer Affairs, Flipkart, DoCA, Consumer Affairs Ministry

David Delima

Email David Delima

As a writer on technology with Gadgets 360, David Delima is interested in open-source technology, cybersecurity, consumer privacy, and loves to read and write about how the Internet works. David can be contacted via email at DavidD@ndtv.com, on Twitter at @DxDavey, and Mastodon at mstdn.social/@delima. More