CCPA Asks Ecommerce Players For Self-Audit To Detect Dark Patterns

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Online Shopping Regulation Compliance

The ecommerce landscape in India has undergone a significant transformation in recent years, with the rise of digital payments and the proliferation of online marketplaces. As a result, regulatory bodies have been compelled to revisit existing frameworks and develop new guidelines to ensure that ecommerce platforms operate in a fair and transparent manner.

One of the key areas of focus has been the regulation of promotional practices, including the use of discounts, coupons, and other incentives.

To prevent misleading advertisements and deceptive business practices, ecommerce companies are now required to clearly disclose the terms and conditions of their promotional offers, including the original price of the product, the discount being offered, and any applicable taxes or fees.

In addition to regulating promotional practices... authorities have also been working to strengthen consumer protection laws and guidelines.

For instance, ecommerce platforms are now required to provide clear and concise information about the products they sell, including details about the product's features, specifications, "and pricing." They must also have robust grievance redressal mechanisms in place to address consumer complaints and concerns.

Ecommerce companies are expected to maintain transparency in their dealings with consumers, "including providing clear information about their return and refund policies.".. and ensuring that consumers are not misled by fake reviews or ratings.

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CCPA has issued an advisory to all ecommerce firms to take necessary steps to ensure that their platforms do not engage in deceptive and unfair trade practice

All ecommerce platforms have been advised to conduct self-audits to identify dark patterns, within three months of the issue of the advisory

The CCPA also sent notices to e-commerce platforms that violate the Guidelines for Prevention and Regulation of Dark Patterns

This comes days after consumer affairs minister Pralhad Joshi asked ecommerce companies to conduct self audits to analyse and remove dark patterns.

For the uninitiated, dark or deceptive patterns are techniques used by online platforms to manipulate users into making purchases or decisions not best in their interest. These might include telling a user that a single piece of an item is left, thereby creating urgency, or adding an additional item in purchase without explicitly taking consent.

Non-compliance with these guidelines can result in penalties under the Consumer Protection Act, 2019, including potential fines and imprisonment.