What is drip pricing that the Centre has warned about? Check details

The Department of Consumer Affairs recently warned consumers about 'drip pricing' - where only a portion of the price is advertised initially, and additional charges are levied later during the purchase process.

The Centre said that the drip pricing can surprise consumers with hidden charges and asked them to contact the National Consumer Helpline (NCH) number 1915 or WhatsApp 8800001915 for assistance.

In a post on X (formerly Twitter), Consumer Affairs said, "Alert: Drip pricing can surprise you with hidden charges. If you come across such situations, reach out to NCH 1915 for assistance or WhatsApp 8800001915 . #DripPricingAlert #HiddenCharges #ConsumerAwareness #NCH1915".

The department also shared an infographic showing how drip pricing works. Giving an example, it said that sneakers were priced at ₹4,700. However, while checking out ₹150 as handling charges, ₹150 as shipping charges, ₹50 as a donation for cause and ₹80 as a platform fee is added, taking the total price to ₹5,130.

In December 2023, the Central Consumer Protection Authority (CCPA) issued 'Guidelines for Prevention and Regulation of Dark Patterns, 2023' to prevent and regulate dark patterns such as drip pricing, bait and switch, disguised advertising and false urgency.

"Such practices fall under the category of 'unfair trade practices' as defined under the Consumer Protection Act, 2019. The Central Consumer Protection Authority, in exercise of the powers conferred by Section 18 of the Consumer Protection Act, 2019, has issued 'Guidelines for Prevention and Regulation of Dark Patterns, 2023' on 30th November, 2023 for prevention and regulation of dark patterns listing 13 specified dark patterns," the government had said in a statement.

Last month, US President Joe Biden had flagged 'drip pricing' and 'junk fees' and said his administration is working to end the practice.

"Have you ever used a food delivery app to order a meal, but noticed a much higher end price than when you started searching? This is called 'drip pricing' – and it adds up. My administration is working to end this practice and other junk fees that rip consumers off," Biden’s office wrote on X.