Policy · Commerce & Consumer Brands
Zepto fined Rs 7 lakh for dark patterns
By Startup Enthusiast ·
- Date
- Company
- Zepto
- What it does
- Quick-commerce grocery delivery platform
- Kind
- Policy
- Founded
- 2021
What they do
Zepto is a quick-commerce platform delivering groceries and essentials in minutes
What happened
The CCPA fined Zepto Rs 7 lakh for using dark patterns like drip pricing and basket sneaking
Why it matters
The regulator found Zepto added hidden charges at checkout, making final prices exceed initial display
The details
- The Central Consumer Protection Authority (CCPA) imposed a Rs 7 lakh fine on Zepto Marketplace Pvt Ltd.
- Zepto used dark patterns including drip pricing and basket sneaking.
- Drip pricing means Zepto showed a lower price at product selection but added handling fees and Zepto Pass membership fee only at checkout.
- For example, an item listed at Rs 170 had a final payable amount of Rs 177.4 after extra charges.
- Basket sneaking means Zepto added a paid Zepto Pass membership to the cart via a pre-ticked default option without the user's explicit consent.
- The CCPA also found interface interference: Zepto highlighted the drip-priced and basket-sneaked options in red while other options were in neutral tones.
- This colour-coded design created a visual hierarchy that steered user choices, and the regulator recorded a measurable spike in selection of highlighted options after the interface was introduced.
- The CCPA ruled that consent obtained through such design was not freely given but engineered via interface manipulation.
The bigger picture
- The CCPA initiated the case through suo motu examination as part of routine monitoring of e-commerce platforms for dark patterns.
- The order grounds dark pattern violations in statutory pricing law (Legal Metrology Rules), not just UI violations.
- The order weakens the protective value of voluntary self-audit declarations; regulator-led scrutiny determines compliance.
About the business
- Zepto is a quick-commerce platform that delivers groceries and essentials in minutes.
- It operates in multiple Indian cities.
- The company uses a network of dark stores (small warehouses located near residential areas) to enable fast delivery.
- Zepto generates revenue through product sales and subscription fees for its Zepto Pass membership program.
What happens next
- The CCPA directed Zepto to discontinue the identified practices.
- Zepto must disclose all charges upfront to consumers.
- The company must conduct regular self-audits to identify dark patterns and publish audit declarations publicly.
The deal
- Type
- fine
Founders
- Aadit Palicha, Co-founder
- Kaivalya Vohra, Co-founder
About Zepto
- Product
- A rapid-delivery app for groceries and everyday essentials.
- Customers
- Consumers ordering groceries and essentials online.
- How it makes money
- It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
- What sets it apart
- It was built as a quick-commerce native company from day one.
- Operations
- Operates dark-store based 10-minute delivery across multiple Indian cities.
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