Centre Investigates Flipkart and Amazon Over ₹100 Platform Fee, Minister Vows Strict Action

The Union Minister of Consumer Affairs, Prahlad Joshi, has confirmed that the Department of Consumer Affairs is investigating complaints against major e-commerce platforms, including Flipkart and Amazon, for imposing arbitrary fees on online orders.

Customers have raised concerns about hidden charges, especially during the festive sale season, prompting authorities to examine these practices and ensure consumer rights are protected.

Consumer Complaints Spark Investigation

Prahlad Joshi addressed the issue on X (formerly Twitter), labeling the extra fees charged by e-commerce platforms as a “dark pattern” that misleads and exploits customers. According to Joshi, the Department has received multiple complaints regarding additional charges levied on Cash-on-Delivery (COD) orders, as well as platform fees that appear arbitrary.

He emphasized that strict action will be taken against platforms that violate consumer rights and exploit online shoppers, highlighting the need for transparency and fair practices in India’s rapidly growing e-commerce sector.

Spike in Complaints During Festive Sale

The probe comes amid the ongoing festive sale season, when platforms like Flipkart and Amazon often see a surge in orders and apply various charges. Customers have taken to social media to voice their concerns about additional fees, which many consider unjustified or misleading.

A common complaint involves extra charges on COD orders and high platform fees, often adding hundreds of rupees to a purchase unexpectedly. Several users shared screenshots of their orders, revealing how these additional fees increase the total payable amount beyond the advertised price.

Examples of Arbitrary Fees on E-commerce Platforms

While the Union Minister did not single out specific platforms, he shared a user screenshot highlighting charges by Flipkart. In the example:

• Platform Fee: ₹99

• Payment Handling Fee: ₹48

• Protect Promise Fee: ₹79

The total fees amounted to ₹226, increasing the order cost from ₹23,999 to ₹24,225. Users expressed frustration at being charged for services that seemed unnecessary, such as verifying a product at delivery or “protecting” the buyer.

Other platforms, including Amazon, Zomato, and Lenskart, have also faced criticism for similar charges:

• Amazon reportedly imposes comparable platform fees.

• Zomato has added a “festival fee”.

• Lenskart charges a “fitting fee” for eyewear products.

Public Reaction and Social Media Outcry

Customers have actively shared their dissatisfaction online, emphasizing that extra fees are becoming normalized across multiple platforms. One user commented on Flipkart’s practice of charging ₹100 for product verification by the delivery agent, questioning its necessity and fairness.

The general sentiment is that these hidden charges exploit customers, particularly during peak shopping seasons, undermining trust in e-commerce platforms. Users argue that such fees should either be made optional or transparent upfront to avoid misleading buyers.

Government Response and Next Steps

In response to the complaints, the Department of Consumer Affairs has initiated a detailed investigation into these practices. The objective is to scrutinize the platforms closely, ensure compliance with consumer protection laws, and maintain fair pricing standards.

Minister Joshi reiterated that strict action would be taken against platforms violating consumer rights, signaling a strong commitment to protecting online shoppers and maintaining transparency in India’s digital marketplace.

Authorities are expected to examine whether these charges constitute unfair trade practices and will consider measures to prevent e-commerce companies from imposing arbitrary fees in the future.

Conclusion

The investigation into Flipkart and Amazon over extra platform fees reflects growing concerns over consumer exploitation in online retail. With social media highlighting widespread dissatisfaction and authorities promising strict action, e-commerce platforms may need to re-evaluate fee structures and adopt more transparent practices. This move could set a precedent for fairer policies across India’s e-commerce ecosystem, especially during high-traffic festive seasons.