Dark patterns
30-Jun-2023: Department of Consumer Affairs urges online platforms to refrain from adopting ‘dark patterns’ harming consumer interest
The Department of Consumer Affairs, Government of India has urged online platforms to refrain from incorporating any design or pattern in the online interface of their platform that may deceive or manipulate consumer choice and fall in the category of dark patterns.
In a letter addressed to major online platforms in India, Shri Rohit Kumar Singh, Secretary, Department of Consumer Affairs has strongly advised online platform to not engage in ‘unfair trade practices’ by incorporating dark patterns in their online interface to manipulate consumer choice and violate ‘consumer rights’ as enshrined under Section 2(9) of the Consumer Protection Act, 2019.
It is pertinent to note that dark patterns involve using a design and choice architecture to trick, coerce or influence consumers to make choices not in their best interest. Engaging in such deceptive and manipulative conduct by using dark patterns in online interfaces unfairly exploits consumers’ interest and constitutes ‘unfair trade practice’ under the Consumer Protection Act, 2019.
Recently, regulators in other jurisdictions such as European Union, USA and UK have taken action against dark patterns involving unfair and deceptive practices in online interfaces which were found to be detrimental to consumers. The activities which the platforms were observed to be indulging include:-
- Non-consensual enrolment in subscription programs (USA)
- Pressure selling using misleading countdown clock (UK)
- Secretly saving credit card information and charging users without consent (USA)
- Putting in place a cancellation process designed to deter consumers from opting out of subscription (Norway).
Some examples of Dark Patterns are:
- False Urgency: This tactic creates a sense of urgency or scarcity to pressure consumers into making a purchase or taking an action.
- Basket Sneaking: Websites or apps use dark patterns to add additional products or services to the shopping cart without user consent.
- Subscription Traps: This tactic makes it easy for consumers to sign up for a service but difficult for them to cancel it, often by hiding the cancellation option or requiring multiple steps.
- Confirm Shaming: It involves guilt as a way to make consumers adhere. It criticizes or attack consumers for not conforming to a particular belief or viewpoint.
- Forced Action: This involves forcing consumers into taking an action they may not want to take, such as signing up for a service in order to access content.
- Nagging: It refers to persistent, repetitive and annoyingly constant criticism, complaints, requests for action.
- Interface Interference: This tactic involves making it difficult for consumers to take certain actions, such as canceling a subscription or deleting an account.
- Bait and Switch: This involves advertising one product or service but delivering another, often of lower quality.
- Hidden Costs: This tactic involves hiding additional costs from consumers until they are already committed to making a purchase.
- Disguised Ads: Disguised ads are advertisements that are designed to look like other types of content, such as news articles or user-generated content.
With growing penetration of internet and rising smartphone usage in India, consumers are increasingly choosing e-commerce as the preferred mode of shopping. In such a scenario, it is essential that online platforms do not indulge in unfair trade practices by incorporating dark patterns which result in a harmful or undesirable outcome for the consumer.
Consumers can report instances of ‘dark patters’ or provide feedback and report such manipulative online practices on the National Consumer Helpline (NCH) by calling ‘1915’ or through WhatsApp on 8800001915.
Mahila Samman Savings Certificate
30-Jun-2023: Public Sector Banks and eligible Private Sector Banks authorised to implement and operationalise Mahila Samman Savings Certificate, 2023
The Department of Economic Affairs, Ministry of Finance, through an e-gazette notification issued on June 27, 2023, permitted all Public Sector Banks and eligible Private Sector Banks to implement and operationalise the Mahila Samman Savings Certificate, 2023. This aims at enabling enhanced access of the scheme for girls/women. With this, Mahila Samman Savings Certificate scheme will now be available for subscription in Post Offices, and eligible Scheduled Banks.
The scheme has been in operation since April 1, 2023 through the Department of Post.
The Central Government has made a number of efforts to secure the political, social, and economic advancement of women through a variety of planned initiatives. In continuation of these efforts, Mahila Samman Savings Certificate, 2023 scheme was announced in the Union Budget FY 2023-24 by the Central Government to provide financial security to every girl and woman in India.
Key Features of the Scheme.
- Provides attractive and secured investment option to all girls and women
- An account can be opened under this scheme on or before the March 31, 2025 for a tenure of two years
- The deposit made under MSSC will bear interest at the rate of 7.5% per annum which will be compounded quarterly. Therefore, the effective interest rate will be roughly 7.7 percent.
- Minimum of ₹1000 and any sum in multiple of 100 may be deposited within the maximum limit of ₹200,000.
- Maturity of the investment under this scheme is two years from the date of opening of the account under the scheme.
- It envisions flexibility not only in investment but also in partial withdrawal during the scheme tenor. The account holder is eligible to withdraw maximum up to 40% of the eligible balance in the scheme account.
State Disaster Response Fund (SDRF)
30-Jun-2023: Government approves release of Rs.6,194.40 crore to 19 State Governments under the State Disaster Response Fund (SDRF)
Union Home Minister and Minister of Cooperation, Shri Amit Shah, today approved release of Rs.6,194.40 crore to 19 State Governments under the State Disaster Response Fund (SDRF).
The amount includes Rs.1,209.60 crore as Central share of the State Disaster Response Fund (SDRF) to four States (Chhattisgarh, Meghalaya, Telangana, Uttar Pradesh) for year 2022-23 and Rs.4,984.80 crore to 15 States (Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Haryana, Himachal Pradesh, Kerala, Maharashtra, Manipur, Meghalaya, Odisha, Punjab, Tamil Nadu, Tripura) for year 2023-24. The release of funds will help States undertake relief measures during the current Monsoon season.