CCPA slaps Rs 7 lakh fine on Zepto for dark patterns like hidden fees, tricky online checkout designs

The Central Consumer Protection Authority has imposed a penalty of Rs 7 lakh on Aadit Palicha-led quick commerce unicorn Zepto for allegedly using “dark patterns” and misleading pricing tactics, according to a report by Livemint.

The agency said Zepto engaged in “drip pricing,” where mandatory charges appeared only at the final stage of checkout.

The CCPA also found that the company used “basket sneaking” by auto-selecting add-on services, including Zepto Pass, without clear consent from users.

The order, issued following an inspection in January, cited violations of the Consumer Protection Act, 2019, and the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

According to the order, Zepto initially displayed lower prices that increased at checkout due to undisclosed handling fees and add-ons, leading customers to pay more than the original quoted price.

The CCPA has now directed Zepto to revamp its checkout process, ensure transparent disclosure of all fees, discontinue dark patterns, and submit proof of compliance within 15 days.

In May this year, the consumer affairs department instructed e-commerce and digital platforms to comply with the guidelines or face action, issuing notices to 11 firms, including Zepto, Rapido, Uber and Ola.

The development comes shortly after CEO Aadit Palicha publicly acknowledged criticism of the platform’s tactics. Speaking to Forbes India, Palicha said the company experimented with different pricing models but admitted that some practices crossed the line.

“A lot of it wasn’t received well on social media or by consumers, and honestly, much of the feedback was valid,” he said.

It's worth noting that Zepto had faced mounting complaints over hidden fees, selective pricing, misleading discounts and alleged MRP manipulation. Palicha earlier said the company resolved the issue within 45-60 days.

“The dark patterns concern was something we genuinely could have solved — and we did,” he said. “I’ll be candid: It was a mistake. We killed it. It won’t happen again.”