The consumer watchdog, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, imposed a fine of ₹5 lakh on PhysicsWallah and ₹1 lakh on McAfee. Both companies have been ordered to eliminate such practices from their platforms to ensure consumers can make informed decisions without coercion or manipulation.
This action was taken under the Consumer Protection Act, 2019, the Consumer Protection (E-Commerce) Rules, 2020, and the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
In the case of PhysicsWallah, the CCPA initiated suo motu investigation into certain practices on the platform, which revealed that users were being nudged toward decisions through design elements that hindered their ability to make free and informed choices.
What CCPA found?
The authority noted that a ₹10 donation to the PW Foundation was automatically selected during checkout and added to the total cost without explicit consent from consumers. Additionally, users were exposed to emotionally charged messages relating to children’s education, healthcare, and marriages, which pressured them to retain the donation option.
The regulator further discovered that courses marketed as ‘free’ could only be accessed after users provided personal information such as mobile numbers and email addresses. Its examination showed that content remained identical across various user accounts, indicating that such data collection was unnecessary for course access.
Dark patterns identified
The CCPA identified multiple dark patterns on the platform, including ‘basket sneaking’ through automatic donation additions, ‘confirm shaming’ via emotional messaging that discouraged users from opting out, and ‘forced action’ which required personal data disclosure to access supposedly free content.
The authority also emphasized that consumer consent cannot be assumed through pre-selected settings and must be obtained through clear affirmative actions. Advertising courses as free without sufficient disclosure of mandatory registration and data-sharing requirements was considered misleading.
The watchdog noted that these practices constituted unfair trade practices and infringed upon consumers’ rights to make informed decisions. It expressed particular concern over the significant number of students, including minors, in the platform’s user base, making these practices especially troubling from a consumer protection viewpoint.
Provisions violated
Consequently, PhysicsWallah was found to have violated provisions concerning consumer rights, misleading advertisements, and unfair trade practices under the Consumer Protection Act, along with relevant provisions of the E-Commerce Rules and the Dark Patterns Guidelines. The company has been mandated to ensure that no dark patterns are utilized across its digital interfaces and to pay a fine of ₹5 lakh.
McAfee Software India Private Limited: What CCPA found?
In a separate decision, the CCPA scrutinized McAfee’s subscription renewal process and found that consumers were not presented with a neutral choice regarding their subscription renewals.
The authority observed that users were prominently shown two options — ‘Renew Now’ and ‘Accept Risk’ — making non-renewal appear as a potentially unsafe option. The phrase ‘Accept Risk’ suggested that consumers could face cybersecurity threats if they chose not to renew their subscription.
The regulator concluded that the design of the interface exerted undue pressure on consumers to maintain their subscriptions. It identified several dark patterns, including confirm shaming, interface interference, trick questions, and forced action, all capable of influencing consumer decision-making.
CCPA’s observations
The authority affirmed that consumers should make subscription choices freely, without fear-based messaging or misleading design strategies. McAfee was found to have violated provisions related to misleading advertisements and unfair trade practices.
McAfee Software India Private Limited has been directed to eliminate such practices from all its digital platforms while incurring a penalty of ₹1 lakh.
CCPA’s continued action against dark patterns
The CCPA reiterated that consumer consent must always be explicit, informed, and free from manipulative design tactics. It noted that the Dark Patterns Guidelines, issued in November 2023, outline 13 deceptive practices regarded as unfair trade practices.
To enhance compliance, the CCPA issued an advisory on June 5, urging e-commerce companies and digital platforms to perform self-audits and remove dark patterns from their interfaces.
