Dark Patterns in App Purchases: A Growing Concern for Consumers

In a recent survey conducted by LocalCircles, an online research firm, it was found that over 50% of consumers have encountered subscription traps, hidden charges, and other deceptive practices known as "dark patterns" while purchasing apps or software through mobile application stores.

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Subscription Traps: A Common Pitfall

One of the most prevalent dark patterns identified in the survey was subscription traps. Consumers who opted for a free app or a one-time service often found themselves unwittingly enrolled in a subscription service without their explicit consent.

Government Action: Banning Dark Patterns

In response to these deceptive practices, the Central Consumer Protection Authority (CCPA) issued a gazette notification on November 30, 2023, to ban dark patterns. The government has identified 13 types of dark patterns, including false urgency, basket sneaking, confirm shaming, forced action, subscription trap, interface interference, bait and switch, drip pricing, disguised advertisement, nagging, SaaS (software as a service) billing, and rogue malwares.

Survey Findings: Widespread Prevalence of Dark Patterns

The survey conducted by LocalCircles between December 1, 2023, and January 30, 2024, received over 44,000 responses from users of apps or software subscription services across 331 districts in India. The findings revealed that:

• 67% of consumers who purchased something via app platforms and SAAS platforms reported experiencing subscription traps, where a one-time purchase turned into a recurring subscription.
• 71% of consumers encountered hidden charges associated with purchases that were not disclosed upfront.
• 50% of consumers fell victim to bait and switch tactics, where the app or software delivered differed from what was promised.
• Around 25% of consumers who downloaded apps via app platforms encountered rogue malware that stole private information or installed unauthorized software on their devices.

Conclusion: Protecting Consumers from Deceptive Practices

The prevalence of dark patterns in the digital marketplace highlights the need for stronger consumer protection measures. The CCPA's ban on dark patterns is a positive step towards safeguarding consumers from deceptive practices. However, continued vigilance and enforcement are necessary to ensure that consumers are protected from these unethical tactics.