Date : 07/07/2023

Relevance – GS Paper 3 – Issues related to Advertisement and Consumer Protection

Keywords – Online advertisements, Online Space, Regulatory Measures, Dark Patern

Context –

The Union Consumer Affairs Ministry has recognized the prevalence of "dark patterns" in online advertisements and plans to issue specific guidelines to control them.

Some major types of Dark Patterns:

Dark patterns involve deceptive design techniques employed by websites and apps to manipulate user behavior. They exploit cognitive biases and emotions to nudge individuals into making choices they may not have made under normal circumstances. Some common types of dark patterns include:

1. Urgency: Creating a sense of scarcity or time pressure to push consumers into making quick decisions or purchases.
2. Basket Sneaking: Adding additional products or services to the shopping cart without the user's consent or knowledge.
3. Confirm Shaming: Guilt-tripping or pressuring consumers into complying with a particular action by criticizing or attacking them for not conforming.
4. Forced Action: Coercing users into taking actions they may not want to, such as signing up for a service to access content.
5. Nagging: Persistently bombarding users with repetitive and annoying requests or complaints to influence their behavior.
6. Subscription Traps: Making it easy for consumers to sign up for a service but challenging for them to cancel it, often through hidden or complex cancellation processes.
7. Interface Interference: Creating obstacles or making it difficult for users to perform certain actions, such as canceling subscriptions or deleting accounts.
8. Bait and Switch: Advertising one product or service but delivering another, typically of lower quality or value.
9. Hidden Costs: Concealing additional costs until consumers are already committed to making a purchase.
10. Disguised Ads: Designing advertisements to resemble other types of content, such as news articles or user-generated posts, blurring the line between advertising and genuine information.

Concerns and Impacts:

The prevalence of dark patterns raises several concerns that impact consumers and the online ecosystem:

1. Harms to Consumer Autonomy: Dark patterns manipulate or influence consumers' choices, leading them to make decisions that are not in their best interests. False or paid-for reviews and deceptive tactics misguide consumers, eroding their autonomy.
2. Financial Loss: Consumers may end up purchasing more expensive products, paying hidden fees, or being lured into unnecessary purchases due to the manipulative tactics employed by dark patterns.
3. Privacy Harms: Dark patterns can lead to the sharing of personal data with other entities without consumers' full awareness or consent, posing privacy risks and potential misuse of personal information.
4. Trust and Engagement: Widespread use of dark patterns can erode consumer trust in digital infrastructure, brands, and advertising. It may also lead to reduced engagement and participation in online platforms due to deceptive practices.
5. Expansion of Online Space in India: India's online space has witnessed significant growth, with a large number of internet users and a booming consumer digital economy. As the online space expands, the prevalence of dark patterns becomes more concerning, necessitating the implementation of specific guidelines to protect consumers.

Regulatory Measures and Way Ahead:

Several regulatory measures have been taken to address deceptive advertising practices and protect consumers from the harms of dark patterns:

1. Department of Consumer Affairs: The department has summoned cab and two-wheeler aggregators to address consumer concerns and ensure transparency in charges and algorithms. It has also formed a consultation group to tackle the issue of fake online reviews.
2. Advertising Standards Council of India (ASCI): ASCI has been addressing misleading ads, including those employing dark patterns, through its existing code. The ASCI code applies to online advertising as well and emphasizes the need for ads not to mislead consumers.
3. Consumer Protection Act 2019: The Act prohibits unfair practices that manipulate consumer choice and impede their right to be well-informed. Deceptive patterns and manipulative tactics fall under the purview of unfair practices.

While these measures provide a foundation for consumer protection, further actions and a culture of consumer respect and meaningful engagement are necessary. Some steps that can be taken include:

1. Enhanced Monitoring and Detection: Regulators and self-regulatory bodies can invest in artificial intelligence and machine learning technologies to detect and identify dark patterns and manipulative practices. This can help identify non-compliant ads and take appropriate action against offenders.
2. Informed Consent and Transparency: Consumers must be fully informed about the consequences of their choices and should not be coerced or misled into unintended actions. Organizations should prioritize transparency and obtain explicit consent without resorting to deceitful tactics.
3. Strengthened Consumer Education: Educating consumers about dark patterns and their potential impact is crucial. Awareness campaigns and information dissemination can empower individuals to recognize manipulative practices and make informed choices.
4. Collaboration and International Efforts: Regulators and self-regulatory bodies should collaborate with international counterparts to share best practices, insights, and technology for monitoring and combating dark patterns. International coordination can help establish global standards and guidelines to address manipulative practices in online advertising.
5. Accountability and Enforcement: Strict enforcement of existing regulations, along with penalties for non-compliance, can act as a deterrent for organizations engaging in dark patterns. This ensures that organizations prioritize ethical advertising practices and respect consumer rights.
6. Continuous Evaluation and Adaptation: As the digital landscape evolves, it is essential to continuously evaluate the effectiveness of regulatory measures and adapt them to address emerging challenges. Regular reviews, consultations with stakeholders, and feedback mechanisms can help refine guidelines and regulations related to dark patterns.

Conclusion:

Dark patterns in online advertisements pose significant risks to consumer autonomy, financial well-being, privacy, and trust in digital infrastructure. The Union Consumer Affairs Ministry's decision to issue specific guidelines to control these manipulative practices is a step in the right direction. However, a multi-pronged approach involving regulatory measures, enhanced consumer education, technological advancements, and international collaboration is needed to effectively combat dark patterns. By fostering a culture of consumer respect, transparency, and meaningful engagement, organizations and regulators can create an online ecosystem that prioritizes consumer welfare and promotes a fair and ethical advertising environment.

Source – Business Standard