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E-commerce Uproar: Centre Launches Probe into Flipkart & Amazon's Platform Fees

Published 2 hours ago2 minute read
David Isong
David Isong
E-commerce Uproar: Centre Launches Probe into Flipkart & Amazon's Platform Fees

The Department of Consumer Affairs has initiated a detailed investigation into numerous complaints against various e-commerce platforms for imposing arbitrary and often unclear fees on customer orders. Union Minister of Consumer Affairs Prahlad Joshi publicly stated on Friday that these practices, which include charging extra for Cash-on-Delivery (COD), are classified as “dark patterns” that exploit and mislead consumers. He assured that strict action would be taken against platforms found violating consumer rights, emphasizing the need for transparency and fair practices in India’s burgeoning e-commerce sector.

Hundreds of customers have voiced their frustration on social media platforms, accusing e-commerce giants like Amazon and Flipkart of adding what they perceive as baseless fees. These charges reportedly escalate significantly during festive sales. Common grievances highlight extra charges for COD, high platform fees, payment handling fees, and even obscure 'protect promise fees'. Other platforms such as Zomato, Swiggy, Zepto, and Lenskart have also faced criticism for introducing 'festival fees' or 'fitting fees', normalizing the imposition of additional costs.

Minister Joshi's comments came amidst widespread reports of Flipkart and Amazon hiking fees during ongoing festive sales, with some customers facing hundreds of rupees in additional charges. Although Joshi did not name specific platforms, he shared a screenshot from a user complaining about Flipkart. This screenshot illustrated a total of ₹226 in fees on a ₹23,999 item, comprising ₹99 as platform fees, ₹48 as 'payment handling fees', and ₹79 as 'protect promise fees', significantly increasing the final purchase price.

Further consumer testimonies detailed other contentious charges. One user highlighted Flipkart's 'Offer Handling Fee' for discounts already advertised and 'Payment Handling Fee' for simply processing a payment, questioning the justification for such costs. Another customer reported being charged ₹100 by Flipkart for a mandatory product verification by the delivery person, an option they could not decline, leading to unnecessary charges. The consistent theme across these complaints is the arbitrary nature and lack of clear justification for these various surcharges, which many customers feel are designed to exploit them, especially during peak shopping seasons.

The ongoing investigation aims to scrutinize these platforms closely to uphold consumer protection laws and ensure that e-commerce operations in India adhere to ethical standards. The government's stance underscores a firm commitment to combating deceptive practices and ensuring consumers receive fair treatment in their online shopping experiences.

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