Ecom platforms under govt lens over extra charges for COD services

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The Ministry of Consumer Affairs is looking into complaints of additional charges being levied by e-commerce platforms when customers choose to pay on delivery for items instead of paying while ordering them.

 

“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,” Pralhad Joshi, Union minister of consumer affairs, wrote on X on Friday afternoon.

 

The minister added that a detailed investigation has been initiated and steps are being taken to scrutinise these platforms closely.

 

“Strict action will be taken against those violating consumer rights to ensure transparency and uphold fair practices in India’s growing e-commerce sector,” Joshi said.

 

According to sources in the ministry, several complaints on this have been received on the National Consumer Helpline (NCH) and the ministry “is working on it”, an official said on Friday.

 

Major e-commerce platforms such as Amazon and Flipkart levy an additional charge, ranging between ~7 and ~10, on cash on delivery orders. 

 

According to LocalCircles, as much as 53 per cent of all e-commerce orders in 2025 will be in the cash-on-delivery mode. The number had reached an all-time low of 39 per cent in 2020.

 

“A lot of first-time buyers or people while trying a new website opt for the cash-on-delivery route,” said an industry executive.

 

Emails sent to Amazon and Flipkart remained unanswered till the time of going to print.