The world of digital advertising is full of dark patterns or deceptive practices such as disguised ads and other manipulative tools to draw in consumers.
On Thursday, the Advertising Standards Council of India (ASCI) came down sternly on such practices, releasing guidelines to check ‘dark patterns’ such as non-declaration of the final price upfront or creating a sense of false urgency to woo consumers.
The guidelines will come into effect from September 1. A larger task force will also be formed to look at dark patterns beyond advertising with the Department of Consumer Affairs (DoCA), it added.
The guidelines state that “quoted prices” in advertisements and e-commerce sites must include non-optional taxes, duties, fees and charges that apply to all buyers. It added that incomplete price representations upfront would be considered misleading.
For instance, a consumer orders a snack from an online food delivery platform which shows the price as ₹100, but the final amount payable comes to ₹175 due to additional tax, delivery fee, and other such charges. This is referred to as “drip pricing” when the total price is usually revealed at the very end of the buying process.
Referring to instances of bait and switch ads, the guidelines stated that “when an ad or an element in an ad directly or indirectly implies one outcome of the consumer’s action but instead serves up another, it is misleading.” For instance, a consumer selects a product offered at a certain price but is thereafter only able to access the same product at a higher price.
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ASCI also stated that implying that quantities of a product or service are “more limited than they are” to create a false sense of urgency will be considered misleading. The advertiser will be required to demonstrate limited stock position in case of consumer complaints, it added.
Disclosures needed
On the issue of disguised ads, the guidelines stated that if an ad is being displayed in a similar format as editorial or organic content, it must carry a disclosure. For instance, when influencer posts, paid reviews, and ads are placed in a manner to appear like editorial content.
In a statement, Manisha Kapoor, CEO and Secretary General, ASCI, said these guidelines will require businesses to create communication and systems that respect user autonomy, improve transparency, and encourage well-informed choices. She added that they will play a crucial role in fostering a more ethical and trustworthy advertising ecosystem and protecting consumer trust.
Rohit Kumar Singh, Secretary Department of Consumer Affairs, said, “Deceptive online patterns are a violation of the Consumer Protection Act. We look forward to working with ASCI and the industry to support a robust self-regulatory mechanism for the larger framework on online deceptive patterns”.
ASCI and DoCA had recently organised a joint consultation on the issue with stakeholders. In November 2022, ASCI had released a discussion paper to examine various deceptive patterns and also formed a multi-stakeholder task force to examine these issues.
