Dark Patterns or Smart Design? Indian Shoppers Love Contested Tactics: Esya Centre

Dark patterns—design techniques that subtly influence consumer choices—are prevalent across both online and offline retail environments, according to a new report launched by the Esya Centre, a leading policy research and innovation think tank. While these practices are often viewed as deceptive, the report finds they can sometimes aid consumers in saving money or choosing better-suited products. The findings highlight the need to reassess the current regulatory focus, especially under the Guidelines for Prevention and Regulation of Dark Patterns (GPRDP), 2023, which apply only to digital platforms and do not fully account for the retail sector’s complexity.

Titled “Dark Patterns in Indian Retail: An Empirical Evaluation”, the study is based on a detailed consumer survey of 1,030 respondents along with a comprehensive analysis of India’s regulatory landscape and retail sector trends. It assesses nine out of the 13 dark patterns recognized by the GPRDP, including false urgency, basket sneaking, and subscription traps, and highlights how both online and offline consumers are exposed to these practices.

Speaking at the report launch, Meghna Bal, Director, Esya Centre stated, “Our research reveals that dark patterns exist across both digital and physical retail environments. While recent regulatory focus has been primarily on online marketplaces, we believe a more holistic approach would better serve consumers. The recent self-governance advisory specifically targeting digital platforms creates an uneven playing field and overlooks similar practices in traditional retail. What’s needed is a collaborative framework that clearly distinguishes between acceptable marketing tactics and manipulative design elements, regardless of where the transaction occurs. This balanced perspective would not only strengthen consumer protection but also foster innovation across the retail ecosystem.”

The report urges joint responsibility among businesses, platforms, and regulators to foster a retail ecosystem grounded in transparency, trust, and informed choice. It advocates for a collaborative governance model that leverages the strengths of each stakeholder, particularly as AI and machine learning tools gain traction in detecting and curbing deceptive practices, to design context-sensitive, scalable regulatory solutions.

Key Findings:

• Consumer Response: Despite their prevalence, dark patterns appear to have limited behavioural impact. Over 39% of respondents noted no change in shopping behaviour online, and 55% reported the same for physical retail. Interestingly, a sizable share (38% online; 27% offline) perceived certain dark patterns as beneficial in aiding decision-making.
• Dark Patterns Across Channels: Online retail remains the primary site for dark pattern exposure, with 50% of consumers reporting such experiences. Surprisingly, 27% also encountered them in offline environments, suggesting that deceptive design is not exclusive to digital platforms.
• Sectoral Contrast: While e-commerce platforms like Amazon, Meesho and Reliance Ajio, are perceived as relatively trustworthy, the travel and hospitality sectors stand out for using aggressive tactics, like hidden fees and seat selection traps, triggering greater consumer frustration.
• Regulatory Imbalance: Current Indian regulations, including the 2023 GPRDP guidelines, place disproportionate scrutiny on online retailers, with limited attention to offline players. The Central Consumer Protection Authority (CCPA) has issued advisories for e-commerce audits, but equivalent mechanisms are lacking for physical retail.
• Retail’s Economic Role: India’s retail sector remains a key driver of economic growth, contributing ₹20.18 lakh crore in GST in FY24, with Retail Tech accounting for 6% of new startups. This dual-channel vibrancy underscores the need for uniform consumer protection across formats.