CCPA fines Zepto for hidden fees and tricky online checkout designs

Subscribe to enjoy similar stories. New Delhi: India’s top consumer watchdog has imposed a penalty of ₹700,000 on quick commerce platform Zepto for using ‘dark patterns’ and misleading price disclosures, including drip pricing and basket sneaking. The Central Consumer Protection Authority (CCPA) said Zepto's practices violated multiple provisions of the Consumer Protection Act, 2019.

Mint has reviewed a copy of the final order. Drip pricing is a deceptive practice in which the platform initially advertises a low price for a product, but inflates the final cost by charging additional fees. Basket sneaking refers to a service being added to a consumer's basket without their knowledge or consent.

CCPA's order follows the consumer affairs department’s notice issued in May, which asked all e-commerce and online platforms to follow government guidelines on dark patterns, failing which they would face action. The notices were sent to 11 companies, including Zepto, Rapido, Uber and Ola. The CCPA order stated that Zepto displayed a lower price upfront, but increased it at checkout through undisclosed mandatory charges such as handling fees and add-ons, leading to consumers paying more than what was initially shown.

This is the second company, after Rapido, to be penalised following notices issued to the 11 firms. The action assumes significance, as India’s online retail market is expected to grow from $75 billion in 2024 to $260 billion by 2030, increasing its share of total retail from 7% to 14%, according to a Deloitte–FICCI report released in August. The report also noted that quick commerce, which already operates in more than 80 cities, is growing at 70–80% annually—one of the fastest growth rates globally.