Dark patterns: Guidelines to prescribe penalties for erring digital businesses

livemint.com:

The government is set to specify penalties for e-commerce companies misleading consumers into taking unintended decisions, as it tightens regulations on unfair trade practices by digital businesses. The guidelines for what’s known in the industry as dark patterns, or deceptive patterns, are expected in a matter of weeks, said an official informed about the development. The government decided to specify the penalties because the underlying consumer protection law does not specifically name ‘dark patterns’ as an unfair practice, although it has a broad scope and covers all deceptive practices and misrepresentations.

This will not only provide e-commerce companies clarity on the consequences of indulging in misleading trade practices, but also make it easier for courts to deal with consumer complaints. Dark patterns are designed deliberately to manipulate users into making choices such as buying a more expensive product, paying more than initially disclosed, sharing data, or making choices based on false or paid-for reviews. “Dark pattern comes under the umbrella of unfair trade practice.

Nudging a consumer in a direction where he does not want to go is an unfair practice. If anyone goes to court, the perpetrator will be punished. But sometimes even e-commerce players may not be aware of it," said the official mentioned above.

“To give clarity to both businesses and consumers about the applicable penalty for such unfair trade practices, the guidelines will specify that. It will also make it easier for courts." The guidelines, framed following consultation with the industry and public feedback, will be issued shortly, the official said. Queries sent to the department of consumer affairs and the ministry of law and justice