Cashback to Subscription: Survey reveals how online platforms trap customers

2 Minutes Read
Online trap, scam, cashback
Online platforms use cashback to attract customers. Stay away from this trap. Representational image/Pexels

Summary

Some online platforms use unethical way to attract customers by promising cashbacks but they get nothing. Stay away from online trap

Online shopping has become a way of life for many, offering convenience at our fingertips. However, despite this convenience, ethical practices and customer rights in this realm often fall short. A recent report conducted by LocalCircles has shed light on troubling trends in the online marketplace.

According to the report’s findings, a significant majority of customers feel they were enticed to online platforms with promises of cashback and enticing subscription offers. However, after signing up, they found themselves empty-handed, receiving none of the benefits they were lured in with.

The survey, as reported by Business Standard, gathered over 45,000 responses from customers all over India. The survey revealed the presence of ‘dark patterns’ and how online platforms use them to attract customers.

Central Consumer Protection Authority (CCPA) has identified 13 types of dark patterns, including false urgency, basket sneaking, confirm shaming, subscription trap, interface interference, forced action, drip pricing, bait and switch, disguised advertisement, trick questions, SaaS billing, nagging, and rogue malware.

Also Read: Mumbai man loses Rs 80,000 in AI Voice Cloning Scam: What is it and How it works?

Beware of Dark Patterns!

The Central Consumer Protection Authority (CCPA) has described dark patterns as sneaky and manipulative tactics employed by platforms. These patterns involve unfair trade practices or advertisements that infringe upon consumer rights. The government officially prohibited these practices in December 2023.

The survey discovered that approximately 62 percent of participants encountered the bait-and-switch tactic. This method entices individuals with promises of a cashback scheme if they make additional transactions or add funds to their online wallets. However, after meeting the requirements, they did not receive any cashback.

Also Read: TCS accused of favoring H-1B Visa holders from India in the US. Who can get this Visa?

Close to 67 percent of surveyed online shoppers reported encountering subscription traps. In these situations, after they linked their bank accounts for UPI payments, the online platforms made it difficult for them to remove or unlink their accounts. The Reserve Bank of India (RBI) has implemented safeguards to protect consumers in such cases.

Over 52 percent of those surveyed reported encountering undisclosed fees related to transactions. They mentioned that these fees were not revealed beforehand but were deducted later on.

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