With India’s digital economy growing, so is the fine print. More and more consumers are being caught by so-called ‘dark patterns’ deceptive design practices, which quietly take advantage of consumer trust in the Banking, Financial Services, and Insurance (BFSI) industry.
At the center of concern is UPI Autopay, a payment option designed to make regular transactions easier. Instead, it’s becoming a breeding ground for abuse. Favored apps such as Kuku FM, Seekho, Goodscore, and Stage are accused of signing users up for auto-renewal plans in questionable fashion. What starts with a Rs 1 or Rs 2 “tester” turns into monthly charges of Rs 149 to Rs 699 frequently without adequate notice or cancellation clarity.
A recent Reserve Bank of India (RBI) complaint illustrates the issue. Users complain of unclear disclosures, no clear opt-out, and complicated cancellation routes that push them through several third-party platforms. For most cases, unsubscribing in the app doesn’t prevent the actual payment mandate. Users instead find ongoing deductions weeks or months later. This brings attention to the compliance and regulations enterprises need to build about to ensure safe digital space.
These behaviors violate the Draft Guidelines for Prevention and Regulation of Dark Patterns (2023) of the Central Consumer Protection Authority (CCPA) in particular the “Subscription Trap” and “Forced Action” provisions. Enforcement, however, is lax.
Industry experts say such are rare mistakes, not systemic problems. But app store ratings and social media posts say otherwise of mass annoyance, particularly by those from Tier-2 and Tier-3 cities who might not have the digital literacy to get through convoluted cancellation procedures.
According to experts such as Pranav Bidare of the Centre for Internet and Society, India’s regulatory environment continues to play catch-up with the quickening pace of fintech. Until definitive penalties and stricter regulation are in place, digital consumers are at risk.
For now, user caution is necessary. Check your UPI mandates. Read the fine print. And scrutinize every “free” trial because in the current BFSI environment, nothing might be quite so free.