The next time you’re shopping online, pay close attention. If a countdown timer pressures you to complete your purchase, extra charges appear only at the final payment page, or cancelling a subscription feels almost impossible, you may not be making a completely free choice.
A LocalCircles survey says these manipulative tactics, known as dark patterns, are now so widespread that 95% of listed companies with consumer-facing online platforms use them. The finding has sparked calls for Sebi to step in and make companies declare themselves “dark pattern free.”
According to the report, 95% of publicly listed companies in India with consumer-facing online transaction platforms continue to use one or more dark patterns, prompting calls for the Securities and Exchange Board of India (Sebi) to make companies declare themselves “dark pattern free” before listing or remaining listed.
Dark patterns are digital design techniques that influence consumers into making choices that benefit the company rather than the user.
These could include automatically adding products to a shopping cart, making subscription cancellations deliberately complicated, displaying misleading discounts, hiding charges until the final payment page or repeatedly nudging users with messages suggesting that an offer is about to expire.
While many consumers experience these tactics regularly, most do not realise there is a formal term for them—or that regulators are increasingly viewing them as deceptive business practices.
The Central Consumer Protection Authority (CCPA) first issued guidelines against dark patterns in 2023. More recently, Sebi proposed a Common Advertisement Code (CAC) for entities it regulates, specifically banning the use of dark patterns in financial advertisements and investor communications.
The LocalCircles study analysed more than 310 digital platforms using consumer complaints, public social media feedback and its proprietary AI-powered dark pattern detection engine.
Its findings paint a worrying picture.
The report claims that 95% of publicly listed companies with consumer-facing online transaction platforms were found during online selection, purchase, payment or refund journeys.
Only five listed companies with consumer-facing online transaction platforms were found to have removed dark patterns entirely as per the survey:
The report also examined companies that had voluntarily declared themselves dark-pattern free before the consumer regulator.
Of the 23 companies that submitted self-declarations to the CCPA, only seven were actually found to be free of dark patterns after analysis, according to LocalCircles.
The report found that some manipulative techniques have become almost standard across digital platforms.
The most common was “Forced Action”, found on 236 platforms, representing 72% of all platforms analysed. This includes making users create accounts, share personal information or complete unnecessary steps before accessing a service.
“Drip Pricing”—where additional charges appear only towards the end of the payment process—was found on 214 platforms (65%).
Other commonly reported practices included:
These practices, the report argues, are designed to influence consumer behaviour rather than help users make informed choices.
Dark patterns were found across almost every major digital sector.
According to the report, sectors where seven or more different dark patterns were detected online banking, ecommerce, OTT platforms, app-based taxis, food delivery, online grocery, travel, broadband, movie ticketing, online payments, gaming, real estate, insurance and hotel booking platforms.
Even sectors such as airlines, telecom, dating apps, quick commerce, cryptocurrency and digital gold were found to use multiple dark patterns.
The report argues that Sebi’s proposed Common Advertisement Code is a positive first step because it seeks to eliminate dark patterns from financial advertisements and investor communication.
However, LocalCircles believes that regulating advertisements alone is not enough.
A company, it argues, could fully comply with Sebi’s advertising rules while continuing to use manipulative practices on its app or website during actual customer transactions.
The organisation has therefore urged Sebi to require every listed company—and every company planning to list—to submit a “dark pattern free” self-declaration.
According to LocalCircles, deceptive digital practices are increasingly becoming corporate governance issues because they expose companies to litigation, regulatory action, reputational damage and long-term business risks that can ultimately affect shareholders.
The organisation says it has already shared a proposed self-declaration framework with Sebi, arguing that companies should certify they are free from manipulative digital practices before accessing public markets.
For consumers, dark patterns often translate into spending more money than intended, sharing more personal information than necessary or remaining locked into subscriptions that are difficult to cancel.
For investors, the debate is beginning to take on a different dimension.
Just as environmental, social and governance (ESG) standards have become an important measure of corporate behaviour, digital business ethics could soon emerge as another indicator of how companies treat customers.
If Sebi eventually expands its oversight beyond advertisements to the design of digital platforms themselves, companies may have to rethink not just how they market their products, but how they build their apps and websites.