PhysicsWallah fined ₹5 lakh over dark patterns on digital platforms; McAfee penalised ₹1 lakh by CCPA
Both companies have been instructed to discontinue such practices from their platforms and ensure that consumers are able to make informed choices without pressure or manipulation.
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The Central Consumer Protection Authority (CCPA) has imposed penalties on edtech platform PhysicsWallah and cybersecurity company McAfee Software India Private Limited for using ‘dark pattern’ practices that allegedly misled consumers and influenced their decisions on digital platforms.
The consumer watchdog, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, fined PhysicsWallah ₹5 lakh and McAfee ₹1 lakh. Both companies have been instructed to discontinue such practices from their platforms and ensure that consumers are able to make informed choices without pressure or manipulation.
For PhysicsWallah, the CCPA took suo motu cognisance of certain practices on the platform and found that users were being nudged into making decisions through interface designs that impaired their ability to exercise free and informed choice.
What CCPA found?
According to the authority, a donation of ₹10 to the PW Foundation was automatically selected during the checkout process and added to the total payable amount without explicit consumer consent. Users were also shown emotionally persuasive messages related to children’s education, healthcare, and marriages, encouraging them to retain the donation option.
The regulator further observed that courses advertised as ‘free’ could only be accessed after users shared personal information such as mobile numbers and email addresses. Its examination revealed that the content remained the same across different user accounts, indicating that such data collection was not essential for accessing the courses.
Dark patterns identified
The CCPA identified multiple dark patterns on the platform, including ‘basket sneaking’ through the automatic addition of donations, ‘confirm shaming’ via emotional messaging discouraging users from opting out, and ‘forced action’ by requiring personal data disclosure before accessing supposedly free content.
The authority also noted that consumer consent cannot be presumed through pre-selected options and must be obtained through clear and affirmative action. It also held that advertising courses as free without adequately disclosing mandatory registration and data-sharing requirements amounted to misleading conduct.
The watchdog said the practices constituted unfair trade practices and interfered with consumers’ right to make informed decisions. It also expressed concern that a significant portion of the platform’s user base comprises students, including minors, making such practices particularly problematic from a consumer protection perspective.
Provisions violated
As a result, PhysicsWallah was found to have violated provisions related to consumer rights, misleading advertisements, and unfair trade practices under the Consumer Protection Act, along with relevant provisions of the E-Commerce Rules and the Dark Patterns Guidelines. The company has been directed to ensure that no dark patterns are deployed across its digital interfaces and to pay a penalty of ₹5 lakh.
McAfee Software India Private Limited: What CCPA found?
In a separate order, the CCPA examined McAfee’s subscription renewal process and found that consumers were not offered a neutral choice while deciding whether to renew their subscriptions.
The authority observed that users were prominently presented with two options — ‘Renew Now’ and ‘Accept Risk’ — effectively portraying non-renewal as a potentially unsafe choice. According to the CCPA, the phrase ‘Accept Risk’ implied that consumers would be exposed to cybersecurity threats if they chose not to renew their subscription.
The regulator concluded that the interface design exerted undue pressure on consumers to continue their subscriptions. It identified several dark patterns, including confirmed shaming, interface interference, trick questions, and forced action, all of which could influence consumer decision-making.
CCPA’s observations
The authority held that consumers should be able to make subscription choices freely, without fear-based messaging or misleading design tactics. McAfee was found to have violated provisions relating to misleading advertisements and unfair trade practices.
McAfee Software India Private Limited has been directed to remove such practices from all its digital platforms while paying a penalty of Rs 1 lakh.
CCPA’s continued action against dark patterns
The CCPA reiterated that consumer consent must always be explicit, informed, and free from manipulative design practices. It noted that the Dark Patterns Guidelines, notified in November 2023, identify 13 deceptive practices considered unfair trade practices.
To strengthen compliance, CCPA issued an advisory on June 5 asking e-commerce companies and digital platforms to conduct self-audits and remove dark patterns from their interfaces.
The consumer watchdog, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, fined PhysicsWallah ₹5 lakh and McAfee ₹1 lakh. Both companies have been instructed to discontinue such practices from their platforms and ensure that consumers are able to make informed choices without pressure or manipulation.
The action came under the Consumer Protection Act, 2019, the Consumer Protection (E-Commerce) Rules, 2020, and the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
For PhysicsWallah, the CCPA took suo motu cognisance of certain practices on the platform and found that users were being nudged into making decisions through interface designs that impaired their ability to exercise free and informed choice.
What CCPA found?
According to the authority, a donation of ₹10 to the PW Foundation was automatically selected during the checkout process and added to the total payable amount without explicit consumer consent. Users were also shown emotionally persuasive messages related to children’s education, healthcare, and marriages, encouraging them to retain the donation option.
The regulator further observed that courses advertised as ‘free’ could only be accessed after users shared personal information such as mobile numbers and email addresses. Its examination revealed that the content remained the same across different user accounts, indicating that such data collection was not essential for accessing the courses.
Dark patterns identified
The CCPA identified multiple dark patterns on the platform, including ‘basket sneaking’ through the automatic addition of donations, ‘confirm shaming’ via emotional messaging discouraging users from opting out, and ‘forced action’ by requiring personal data disclosure before accessing supposedly free content.
The authority also noted that consumer consent cannot be presumed through pre-selected options and must be obtained through clear and affirmative action. It also held that advertising courses as free without adequately disclosing mandatory registration and data-sharing requirements amounted to misleading conduct.
The watchdog said the practices constituted unfair trade practices and interfered with consumers’ right to make informed decisions. It also expressed concern that a significant portion of the platform’s user base comprises students, including minors, making such practices particularly problematic from a consumer protection perspective.
Provisions violated
As a result, PhysicsWallah was found to have violated provisions related to consumer rights, misleading advertisements, and unfair trade practices under the Consumer Protection Act, along with relevant provisions of the E-Commerce Rules and the Dark Patterns Guidelines. The company has been directed to ensure that no dark patterns are deployed across its digital interfaces and to pay a penalty of ₹5 lakh.
McAfee Software India Private Limited: What CCPA found?
In a separate order, the CCPA examined McAfee’s subscription renewal process and found that consumers were not offered a neutral choice while deciding whether to renew their subscriptions.
The authority observed that users were prominently presented with two options — ‘Renew Now’ and ‘Accept Risk’ — effectively portraying non-renewal as a potentially unsafe choice. According to the CCPA, the phrase ‘Accept Risk’ implied that consumers would be exposed to cybersecurity threats if they chose not to renew their subscription.
The regulator concluded that the interface design exerted undue pressure on consumers to continue their subscriptions. It identified several dark patterns, including confirmed shaming, interface interference, trick questions, and forced action, all of which could influence consumer decision-making.
CCPA’s observations
The authority held that consumers should be able to make subscription choices freely, without fear-based messaging or misleading design tactics. McAfee was found to have violated provisions relating to misleading advertisements and unfair trade practices.
McAfee Software India Private Limited has been directed to remove such practices from all its digital platforms while paying a penalty of Rs 1 lakh.
CCPA’s continued action against dark patterns
The CCPA reiterated that consumer consent must always be explicit, informed, and free from manipulative design practices. It noted that the Dark Patterns Guidelines, notified in November 2023, identify 13 deceptive practices considered unfair trade practices.
To strengthen compliance, CCPA issued an advisory on June 5 asking e-commerce companies and digital platforms to conduct self-audits and remove dark patterns from their interfaces.
(Edited by : Sudarsanan Mani)
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