BEWARE OF DECEPTIVE DARK PATTERNS IN INFLUENCING CONSUMER’S PRODUCT CHOICE

Relevance

  • GS 3: Science and Technology – Implications of Digital Interfaces
  • GS 2: Governance – Consumer Protection, Ethical Standards in Advertising

Focus

BEWARE OF DECEPTIVE DARK PATTERNS IN INFLUENCING CONSUMER'S PRODUCT CHOICE - UPSC

    • The article emphasizes how misleading “dark patterns” in digital decision architecture, especially in online user interfaces, are a growing source of worry.
  • These patterns pose moral dilemmas for marketers and designers because they are intended to sway customer decisions and erode their sense of autonomy.
  • NOTE: Dark patterns are misleading design approaches used in apps and websites to fool people into making decisions they wouldn’t normally make. These habits can result in accidental purchases, privacy violations, and addiction.

Context

  • In a recent report, the Advertising Standards Council of India (ASCI) and Parallel, a product design company, exposed how commonplace the usage of misleading patterns is in popular Indian apps.
  • This study examined more than 12,000 cases from 53 top apps in different industries, and the results showed that the majority of these apps used at least one of 12 dishonest behaviours.

Key Issues

  • Types of Deceptive Patterns:
    • This pattern entails tampering with user interfaces to gently sway consumer decisions. Some instances include obscured important information or difficult-to-close pop-ups that result in unintentional purchases or subscriptions.
    • Given that it is anticipated that e-commerce sales in India would exceed $200 billion by 2026, these strategies may have far-reaching financial effects on customers.
  • Forced Continuity:
    • It is common for consumers to be duped into signing up for services that automatically renew without their express consent, making it challenging for them to unsubscribe.
    • Considering that the Indian subscription-based service market is predicted to expand at a compound annual growth rate (CAGR) of 17.5% for the next five years, the frequency of these patterns is alarming.
  • Ethical Concerns:
    • Consumer Autonomy: By leading consumers toward decisions, they might not have made if fully informed, the usage of dark patterns violates their right to autonomy. The integrity of digital marketing techniques is called into serious ethical question by this, particularly considering that more than 50% of Indian consumers now make their purchasing decisions online.
    • Lack of Transparency: A lot of apps make it difficult for users to make wise decisions by failing to explicitly disclose the use of these deceptive tactics. According to a recent Local Circles poll, 62% of Indian customers have come across deceptive content or strategies on digital platforms.
  • Impact on Trust and Market Dynamics:
    • Erosion of Trust: The widespread usage of dark patterns can cause consumers to lose faith in digital platforms, which can harm a company’s reputation over time if it uses these strategies. According to a Deloitte survey from 2023, 70% of customers are inclined to go to a rival if they believe a brand is acting unethically.
    • Market Competition Distorted: By putting short-term profits ahead of moral behavior, these tendencies have the potential to damage both customers and morally-minded companies. Concerns over these techniques’ effects on fair competition have also been voiced by the Competition Commission of India (CCI).
Case Studies

Subscription Traps: 

  • A number of apps are highlighted in the research that use “Subscription Traps,” in which customers unintentionally sign up for recurring services. Customers find it challenging to opt out of these traps since they frequently conceal canceling choices.
  • For example, a big streaming provider faced fines in 2022 for failing to disclose auto-renewal conditions in a clear and understandable manner, which resulted in strong consumer outrage.

Pre-Selected alternatives: 

  • Using pre-selected alternatives that result in more expensive purchases is another typical strategy.
  • For instance, pre-selected extra services or charitable donations might be applied by default, increasing the customer’s cost without getting their permission.
  • Multiple travel booking platforms were reported by the ASCI in 2023 for pre-selecting travel insurance, which resulted in unanticipated costs for customers.

Infractions of privacy: 

  • Certain applications use misleading methods to obtain authorization for obtaining personal information.
  • These permissions are frequently concealed under ambiguous language or tucked away in extensive terms and conditions.
  • According to a 2022 survey, 54% of Indian customers are worried about how digital platforms are using their data, and many of them are ignorant of how much data sharing occurs.

Statistical Data

  • Internet Users in India: 750 million, the second-largest user base globally.
  • Digital Economy Growth: Expected to reach $1 trillion by 2025.
  • E-commerce Sales: Projected to hit $200 billion by 2026.
  • Consumer Encounters with Misleading Tactics: 62% of Indian consumers have reported such experiences.
  • Market Impact: 70% of consumers likely to switch brands due to perceived unethical behavior.
  • Subscription Service Market Growth: Expected CAGR of 17.5% over the next five years.

Way Forward

  • Stricter Regulations and Enforcement:
    • Consumer Protection Act, 2019: To address the issue of dark patterns, the government can make use of the Consumer Protection Act. Deceitful digital practices should be specifically included in the Act’s provisions on unfair commercial practices.
    • Information Technology (Digital Media Ethics Code and Intermediary Guidelines) Regulations, 2021: These policies must to be revised to require digital platforms to disclose information about their usage of dark patterns in a more transparent manner. The Ministry of Electronics and Information Technology (MeitY) ought to bolster enforcement.
  • Ethical Design Standards:
    • The Guidelines for Ethical AI from NITI Aayog: These standards’ guiding ideas might be expanded to encompass ethical digital design. Industry participants ought to work together to create a code of conduct that forbids the application of dark patterns.
    • Digital India Initiative: Under the Digital India project, the government can encourage the adoption of moral design principles by offering rewards and recognition to businesses who put customer rights first.
  • Consumer Education and Awareness:
    • Jan Suraksha Campaign: A targeted campaign emphasizing digital literacy and the detection of dark patterns ought to be introduced, building on current consumer awareness campaigns. To reach a larger audience, this can be combined with the National Digital Literacy Mission (NDLM).
    • RBI’s Financial Literacy Program: Modules on identifying and avoiding dishonest digital activities, particularly in fintech and online banking, might be included in the Reserve Bank of India’s continuing financial literacy initiatives.
  • Transparency Initiatives:
    • Mandatory Disclosures: Digital platforms should be obliged to give explicit, upfront disclosures about any pre-selected alternatives, subscription conditions, and data permissions in accordance with the Consumer Protection (E-Commerce) Rules, 2020. The enforcement of these regulations may be supervised by the Central Consumer Protection Authority (CCPA).
    • User-Friendly Interface Design: Promote the adoption of transparent and clear interfaces by platforms. The government may think about providing tax breaks or other rewards to businesses that show a dedication to ethical design.
  • Research and Continuous Monitoring:
    • NASSCOM’s Data-Driven Innovation for Digital India program: Studies on the effects of dark patterns and the efficacy of laws can be included to this program. It is necessary to set up systems for ongoing observation and reporting, perhaps through public-private partnerships.
    • Consumer Grievance Redressal measures: To explicitly handle concerns about dark patterns, reinforce the Consumer Protection Act’s current grievance redressal measures. There might be a specific hotline or web page set up where customers can report dishonest business practices.

Conclusion

The utilization of misleading dark patterns in digital interfaces is an increasing source of worry as it jeopardizes the confidence and autonomy of users. A diverse strategy is needed to address this problem, including more stringent laws, moral design guidelines, consumer education programs, transparency campaigns, and ongoing oversight. We can establish a safer digital environment that prioritizes consumer rights and encourages fair competition in the market by combining government initiatives like the Consumer Protection Act, Digital India, and ethical principles for AI.

Mains Question

Discuss the ethical concerns of incorporating dark patterns into digital choice architecture. What steps, supported by recent government actions, can be implemented to safeguard consumers from such deceptive practices?  (250 words)