CCPA Fines PhysicsWallah Rs 5 Lakh Over Dark Pattern Practices

The Central Consumer Protection Authority (CCPA) has imposed penalties on PhysicsWallah Limited and McAfee Software India Private Limited for using dark patterns that allegedly influenced consumer decisions through misleading digital design practices. The action was taken under the Consumer Protection Act, 2019, along with related e-commerce and dark pattern regulations.

The authority, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, imposed a penalty of ₹5 lakh on PhysicsWallah and ₹1 lakh on McAfee. Both companies have also been directed to discontinue such practices and ensure greater transparency for consumers using their platforms.

According to the regulator, PhysicsWallah automatically added a ₹10 donation to the PW Foundation during the payment process through a pre-selected option. Consumers who attempted to remove the donation were reportedly shown emotional messages referring to children’s education, healthcare and marriages, encouraging them to continue contributing.

The CCPA found that such conduct amounted to “Basket Sneaking” and “Confirm Shaming,” both of which are prohibited under the Guidelines for Prevention and Regulation of Dark Patterns, 2023. The authority stressed that consent cannot be presumed through pre-ticked options and must be obtained through a clear and affirmative action by users.

The regulator also examined the platform’s promotion of certain courses as “free.” It observed that access to these courses was available only after users shared personal information, including mobile numbers and email addresses. This practice was classified as “Forced Action” because users were required to provide data before accessing the advertised service.

While considering the matter, the authority noted that a significant number of users on the platform are students, including minors. It observed that digital interfaces targeting such users should follow higher standards of transparency and fairness.

In a separate order, the CCPA found fault with McAfee’s subscription renewal process. Consumers were presented with options such as “Renew Now” and “Accept Risk” while making decisions regarding subscription renewals. The authority held that the wording could create fear and pressure users into renewing their subscriptions.

The regulator concluded that McAfee’s interface involved dark patterns including Confirm Shaming, Interface Interference, Trick Question and Forced Action. It observed that such design choices may unfairly influence consumer behaviour by making alternatives appear undesirable or risky.

The CCPA reiterated that consumer consent must always be informed, explicit and free from manipulation. The latest action highlights the regulator’s increasing focus on ensuring that online businesses adopt fair digital practices and provide consumers with genuine freedom of choice in the digital marketplace.