
Zepto redesigns app to remove 'dark patterns' under regulatory pressure
What's the story
Zepto, a major e-commerce player, has revamped its app by removing certain interface elements that were flagged by customers as "dark patterns." These deceptive design tactics often lead users into unintended purchases. The move makes Zepto the first major player in the industry to make such changes under regulatory pressure. The company has also changed its free-delivery benefit system and redesigned its checkout flow for better transparency.
App modifications
Free-delivery benefit now auto-applied
Previously, Zepto's free-delivery benefit required users to manually "opt in," a process that was widely criticized by customers. Now, the feature is auto-applied, just like its competitors Blinkit and others. The company has also revamped its checkout flow with all charges displayed upfront on the cart page. This includes delivery fees, handling charges, and surcharges instead of them appearing at the final payment stage.
Regulatory compliance
Consumer ministry warns e-commerce platforms over manipulative design elements
The changes come after the consumer affairs ministry warned several e-commerce companies, including Zepto, Uber, and Ola, to remove manipulative design elements or face regulatory action. Although Zepto denied using dark patterns in its interface, customers had reported issues such as hidden coupons despite paid subscriptions and last-minute add-ons like "small cart fees" or "rain fees." The recent tweaks seem to directly address these concerns.
Regulatory focus
Dark patterns defined as unfair trade practices
Dark patterns have been under the scanner of Indian regulators for over a year. In November 2023, the government issued guidelines defining 13 such tactics as unfair trade practices. These include false urgency, basket sneaking, confirm shaming, and drip pricing. The Central Consumer Protection Authority has issued multiple advisories and launched investigations against these deceptive practices in e-commerce platforms.
Financial developments
Zepto's compliance comes amid funding round
Zepto's compliance push comes at a time when the company is in the middle of a major funding round. Recently, it raised ₹400 crore from Motilal Oswal Financial Services and ₹25 crore from MapmyIndia as part of a strategic partnership. The company is also in talks to raise $450-500 million, which would value it at $7 billion post-money.