Government Issues Warning Against ‘Drip Pricing’ on E-Commerce Platforms

Department of Consumer Affairs has issued a strong advisory warning shoppers against ‘Drip Pricing’—a manipulative online pricing tactic that conceals extra costs until the final stage of purchase, particularly during the festive season. The alert comes amid a boom in digital retail activity, driven by festive discounts and quick commerce growth.

What is Drip Pricing?

‘Drip Pricing’ is a deceptive marketing practice where companies advertise a low initial price to attract customers but gradually add hidden fees during the checkout process. These costs may include service charges, convenience fees, delivery surcharges, or taxes that were not disclosed upfront. The technique takes advantage of consumers’ psychological bias toward lower displayed prices, making them more likely to continue with the purchase even after the total amount rises.

Examples of Drip Pricing in Action

Drip pricing extends across multiple industries and digital platforms: –

• Hotel Bookings: Travellers often find attractive room rates online, only to discover added resort, cleaning, or facility fees at checkout. These can substantially increase the overall cost of accommodation.
• Airline Tickets: Airlines frequently advertise low fares that exclude baggage fees, seat selection costs, or fuel surcharges—revealed only at the final booking stage.
• Car Rentals: Customers are initially quoted a low daily rate but encounter hidden add-ons such as insurance, GPS, or late return penalties upon collection.
• Online Shopping: E-commerce platforms may advertise low product prices but later include shipping, handling, or “packaging” fees that inflate the total.
• Event Tickets: Concerts, sports events, or amusement parks often display low ticket prices but add service, convenience, or processing fees before payment.

Government’s Official Advisory

The Department of Consumer Affairs, through its official ‘X’ handle @jagograhakjago, highlighted that drip pricing constitutes a ‘Dark Pattern’—a manipulative online design intended to mislead consumers. The post urged citizens to remain cautious of deals that seem “too good to be true” and to check final pricing before making digital payments. Officials also noted that transparency in pricing is mandatory under consumer protection norms.

Exam Oriented Facts

• ‘Drip Pricing’ is categorised as a ‘Dark Pattern’ under India’s Consumer Protection (E-commerce) Rules, 2020.
• Consumers can report violations via the National Consumer Helpline (NCH) by dialling 1915.
• Hidden charges may include convenience, service, or packaging fees added at checkout.
• Campaigns like ‘Jago Grahak Jago’ promote awareness against deceptive digital practices.

Rising Festive Sales and Consumer Vigilance

The government’s warning coincides with record Diwali 2025 e-commerce figures, with order volumes up by 24% and Gross Merchandise Value rising 23% year-on-year, as per Unicommerce data. Quick commerce platforms alone saw 120% growth, driven by Gen Z shoppers. While festive shopping continues to thrive, the government’s message is clear—consumers must stay alert, verify all charges, and report any form of hidden pricing to ensure fair trade in India’s digital marketplace.