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Policy · Education & Skilling

CCPA fines PhysicsWallah for dark patterns

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Date
Company
PhysicsWallah
What it does
Online education platform
Kind
Policy
Amount
₹5 Lakh
Sector
Education & Skilling

What they do

PhysicsWallah offers live courses for JEE, NEET, and other exams

What happened

CCPA imposed a ₹5 Lakh penalty for pre-selected donation and forced data collection

Why it matters

The company also revised its lending strategy to partner with NBFCs instead of direct lending

The details

  • The Central Consumer Protection Authority (CCPA) imposed a ₹5 Lakh penalty on PhysicsWallah for using dark patterns (deceptive design tricks that trick users into doing things they didn't intend).
  • The CCPA order was dated June 1, 2026.
  • PhysicsWallah collected about ₹2.47 Crore from over 21.36 Lakh users through a pre-selected donation option.
  • The donation option was a pre-ticked ₹10 'Donate for PW Foundation' checkbox active from February 2024 to December 2025.
  • The CCPA classified this practice as 'basket sneaking' (adding items to a user's cart without their explicit consent).
  • The messaging alongside the donation option amounted to 'confirm shaming' (using guilt or pressure to make users agree).
  • The CCPA also found forced action: users had to provide their mobile number and email to access free courses.
  • A CCPA inspection on December 22, 2025 found the donation option was still selected by default.

The bigger picture

  • PhysicsWallah argued the donation feature was clearly disclosed and about 64% of users chose not to donate.
  • The CCPA rejected this argument, stating that visibility does not equal consent.
  • The CCPA directed PhysicsWallah to discontinue all dark patterns, pay the penalty, and submit a compliance report within 15 days.
  • The CCPA also fined McAfee ₹1 Lakh for dark patterns on the same day.
  • The CCPA has taken action against Zepto, Flipkart, and FirstCry for dark patterns over the past year.

About the business

  • PhysicsWallah offers live courses for JEE, NEET, Class 6-12, NCERT solutions, competitive exams, school boards, government exams, UG/PG entrance, finance courses, PW Skills, study abroad, and more.
  • The platform provides daily live interactive classes, over 10 million tests, 24x7 doubt solving, and 100+ offline centres.
  • It operates offline Vidyapeeth and Pathshala centres in 175+ cities.
  • The platform claims millions of happy students and offers mock tests, video lectures, and practice papers.
  • It prepares students for 35+ exam categories.

What happens next

  • PhysicsWallah revised its student lending strategy: it will partner with NBFCs (non-banking financial companies) instead of direct lending via FinZ Finance.
  • The company had announced about ₹120 Crore investment in FinZ Finance.
  • The revised approach reduces balance sheet and credit-related risks.
  • PhysicsWallah will function as a technology platform connecting students with lending partners.
  • The future direction of FinZ Finance is subject to board and regulatory approvals.

The deal

Type
penalty

Founders

  • Alakh Pandey, Founder
  • Prateek Maheshwari, Co-founder

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