Drip Pricing

Published: 11th May, 2024

Context

The Department of Consumer Affairs issued a warning about 'drip pricing,' where only part of the price is shown upfront, and additional charges are added later.

About Drip Pricing

Drip pricing means showing only a fraction of an item's cost at first, and revealing the full amount during purchase.
These added charges might include taxes or booking fees, or omitting necessary extras like internet access, which may be needed for the product or service.
In December 2023, the Central Consumer Protection Authority (CCPA) released 'Guidelines for Prevention and Regulation of Dark Patterns, 2023' to tackle practices like drip pricing, bait and switch, disguised advertising, and false urgency.
Such practices are considered 'unfair trade practices' under the Consumer Protection Act, 2019.

Fact Box: Consumer Protection Act, 2019

The Consumer Protection Act, 2019 was passed by the Indian government to address issues related to violations of consumer rights, unfair trade practices, and misleading advertisements.
The Act aims to protect consumers' rights and interests by setting up Consumer Protection Councils to resolve disputes and provide compensation if consumers' rights are violated.
There are six rights of consumers outlined in Section 2(9) of the Act.
- Protection from hazardous goods and services.
- Protection against unfair trade practices, ensuring awareness of quality, quantity, price, etc.
- Access to a variety of goods and services at competitive prices.
- Right to seek redressal against unfair trade practices.
- Right to receive adequate compensation if wronged by the seller.
- Right to consumer education.

CURRENT AFFAIRS FOR UPSC IAS

Drip Pricing

About Drip Pricing

Fact Box: Consumer Protection Act, 2019

Still Have Questions?

CURRENT AFFAIRS FOR UPSC IAS

Drip Pricing

About Drip Pricing

Fact Box: Consumer Protection Act, 2019

Still Have Questions?

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