In India's rapidly expanding digital economy, online platforms increasingly rely on dark patterns, which are deceptive design techniques that nudge consumers into making purchases or sharing personal information they may not otherwise have agreed to. As concerns over these manipulative practices grow, regulators, including the Securities and Exchange Board of India (
Sebi) and the Insurance Regulatory and Development Authority of India (
Irdai), have stepped up efforts to curb their use.
Against this backdrop, a study published by LocalCircles last week found that nearly 95 per cent of the top 300 publicly listed companies with consumer-facing online platforms use at least one dark pattern. The findings are based on consumer complaints received over the past year, public social media posts and LocalCircles' AI-powered dark pattern detection tool, which analysed more than 310 digital platforms.
What are dark patterns?
The Insurance Regulatory and Development Authority of India (Irdai) defines dark patterns as deceptive design techniques used on websites and mobile applications to manipulate users into making decisions they may not have intended to make. These may include nudging consumers into subscribing to unwanted services, accepting marketing communications, sharing personal data or making unintended purchases.
What did the study find?
LocalCircles found that 95 out of every 100 publicly listed companies with online consumer transactions use one or more dark patterns. These companies use deceptive practices at some stage of the consumer journey, including product selection, payments and returns or refunds.
Among the companies screened, only five listed firms were found to be free of dark patterns, which are
Meesho, Page Industries (Jockey), Hamleys (Reliance Retail), ECOS (India) Mobility & Hospitality, and Easy Trip Planners (EaseMyTrip).
The study also questioned the effectiveness of the current self-certification framework. Of the 23 companies that had submitted self-declarations to the Central Consumer Protection Authority (CCPA) claiming they were free of dark patterns, only seven were actually found to comply. The remaining 16 continued to deploy deceptive interface designs despite their declarations.
Which dark patterns are most common?
The study found forced action, where users are compelled to perform an unrelated action such as creating an account or sharing personal information, to be the most common dark pattern, appearing on 72 per cent of platforms analysed.
It was followed by drip pricing, where additional charges are revealed only at the final stage of payment (65 per cent), interface interference (52 per cent), bait and switch (52 per cent), nagging (36 per cent) and subscription traps (33 per cent).
Which sectors are most affected?
Dark patterns were most prevalent in sectors such as:
Digital lending
Edtech
Online banking
E-commerce
Food delivery
OTT platforms
Online travel
Online grocery
Insurance
Ticketing
Meanwhile, airlines, train ticketing, telecom and quick commerce recorded relatively limited use of such practices.
Dark patterns cost consumers thousands of crores
The findings add to growing evidence of the impact of dark patterns. A Datum Intelligence report released last month estimated that deceptive online practices cost Indian consumers ₹25,000-28,000 crore annually, with 88 per cent of India's 304 million online shoppers losing ₹78-87 every month due to manipulative interface designs.
Among ecommerce platforms, Amazon emerged as the most trusted, with half of the respondents naming it as their preferred platform. Flipkart, Myntra and Nykaa recorded net distrust among respondents. In online travel, MakeMyTrip was viewed as the safest platform, while Cleartrip ranked among the most problematic. In quick commerce, BigBasket recorded one of the highest severity scores for dark-pattern usage.
How are regulators responding?
With concerns growing over the use of manipulative online practices, Indian regulators across sectors have begun tightening oversight.
Sebi proposes advertising code
Sebi, earlier this month, proposed a Common Advertisement Code (CAC) 2026, which explicitly prohibits dark patterns in advertisements and investor communications by regulated entities.
The draft code bans practices such as:
False urgency
Subscription traps
Hidden charges
Confirm shaming
Misleading default settings
Disguised advertisements
It also bars cashback offers, trading vouchers and free subscriptions that encourage investors to trade or download investment applications.
The proposal aligns Sebi's advertising framework with the CCPA's 2023 dark pattern guidelines and would apply across websites, mobile applications, onboarding journeys, advertisements, social media promotions and investor communications.
Irdai opts for independent audits
The insurance regulator has also stepped up enforcement. Irdai has partnered with the Institute of Public Auditors of India to independently assess the use of dark patterns across the insurance industry over the next nine months, after insurers largely declared themselves free of such practices through self-assessments.
Speaking at an industry event last week, Irdai Chairman Ajay Seth questioned the effectiveness of those self-declarations, saying the regulator had decided to commission an independent study after nearly all insurers reported that they did not use dark patterns, reported The Indian Express. Seth also criticised insurers for seeking excessive personal information before allowing customers to compare products, saying the practice reduces transparency and discourages informed decision-making.
Irdai is expected to release a consultation paper on insurance distribution reforms this month, with measures aimed at improving transparency and curbing mis-selling.
The regulator's move follows the Reserve Bank of India's framework to curb the mis-selling of financial products by banks, which comes into effect from January 1, 2027.
 "95% of Indian listed firms use dark patterns: How regulators are responding")
