Govt Warns E-Commerce Platforms Against Extra Cash-on-Delivery Charges

Consumer Affairs Minister warned e-commerce companies of strict action for levying hidden fees on cash-on-delivery orders, following viral complaints of misleading charges.

Govt Warns E-Commerce Platforms Against Extra Cash-on-Delivery Charges

Mumbai : Consumer Affairs Minister Pralhad Joshi on Friday issued a stern warning to e-commerce companies, declaring that strict action will be taken against any platform found levying additional charges on customers opting for cash-on-delivery. The statement comes in the wake of growing complaints that several platforms have been exploiting buyers by imposing extra fees under various labels, not only on cash-on-delivery orders but sometimes even on prepaid purchases.

Recent allegations suggest that companies often mislead customers with dubious practices — such as enforcing minimum order quantities, falsely claiming limited stock availability, or promoting time-bound offers that are not genuine. These tactics, officials say, are designed to confuse and manipulate consumers in India’s rapidly expanding e-commerce sector.

The issue gained momentum earlier this week when a netizen posted a screenshot of his Flipkart payment details on social media, highlighting how he was charged an additional ₹226 under categories such as “offer handling fee,” “payment handling fee,” and “protect promise fee.” In his post, he also pointed out repeated instances of extra charges whenever he chose cash-on-delivery. The viral post sparked widespread debate, drawing attention to the opaque fee structures of major e-commerce platforms.

Responding directly to the post, Minister Joshi wrote on X that the Department of Consumer Affairs has received multiple complaints of such practices, observing a “disturbing pattern of deception and exploitation.” He confirmed that a detailed investigation has already been initiated and that platforms will now be closely monitored. Joshi emphasized that the government is committed to ensuring transparency in the digital marketplace and assured that violators of consumer rights in the e-commerce industry will face strict penalties.

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