Indian Government Considers Mandatory Measures to Combat Fake Reviews on Ecommerce Platforms

In response to the burgeoning online shopping space in India, the government is contemplating the enforcement of a mandatory system aimed at curbing the prevalence of fake reviews on ecommerce sites. This initiative comes in the wake of recently introduced guidelines addressing ‘dark patterns,’ with an increased focus on eradicating deceptive practices employed by ecommerce companies.

Key Points:

  • The Department of Consumer Affairs, led by Secretary Rohit Kumar Singh, stresses the need for authentication of product reviews.
  • Plans are underway to make it compulsory for all ecommerce platforms to implement systems for managing and preventing fake reviews based on government-defined norms.
  • Recent guidelines on ‘dark patterns’ aim to eliminate manipulative practices influencing consumer behavior negatively.
  • Singh highlights instances of deceptive practices, such as automatically adding items to shopping carts or imposing additional charges during checkout.
  • The government’s commitment to releasing guidelines against ‘greenwashing’ underscores the importance of preventing misleading claims about the environmental impact of products.

Government’s Stance on ‘Dark Patterns’:

  • The government recently notified guidelines addressing ‘dark patterns’ – manipulative practices by ecommerce platforms – identifying 13 types, up from the 10 identified in the draft.
  • Ecommerce platforms received warnings against using ‘dark patterns’ in their user interfaces. The Department of Consumer Affairs has been actively engaged in addressing this issue and has communicated its intent to issue guidelines if voluntary compliance is not achieved.
  • Dark pattern elements include False Urgency, Subscription Traps, Confirm Shaming, Forced Action, Bait and Switch, and Hidden Costs.

Upcoming Guidelines on ‘Greenwashing’:

  • The government plans to release guidelines to prevent ‘greenwashing,’ a practice where products are misleadingly marketed as environmentally friendly to attract consumers willing to pay premium prices.

Industry Response and Stakeholder Involvement:

  • A task force, including representatives from major ecommerce platforms, was formed to develop guidelines on dark patterns following a stakeholder consultation in June.
  • In September, the Advertising Standards Council of India (ASCI) released guidelines on ‘Online Deceptive Design Patterns in Advertising’ to counter dark patterns in digital ads.
  • A comprehensive stakeholder consultation in June indicated broad consensus on the significant issue presented by dark patterns.
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