A recent study highlights that 95% of India's public companies utilize dark patterns, prompting calls for regulatory action from SEBI.
New Delhi, India Jul 8, 2026 ALN: A recent study has unveiled a concerning trend in India's corporate landscape, revealing that a staggering 95% of public companies are employing what are known as dark patterns in their user interfaces. Dark patterns refer to design tactics that manipulate users into making choices they might not otherwise make, often leading to negative consequences for consumers.
Dark patterns are deceptive design strategies that can mislead users into subscribing to services, sharing personal information, or making purchases without their full consent. These tactics can include hidden fees, misleading language, and confusing navigation that ultimately serve the interests of the company at the expense of the consumer. The term "dark patterns" was coined by web designer Harry Brignull in 2010, and since then, it has gained traction as an important concept in discussions around user experience and digital ethics.
Examples of dark patterns include "bait and switch" tactics, where consumers are attracted to a product or service under false pretenses, only to find that the actual offering is different or more expensive than initially advertised. Other common dark patterns involve the use of pre-checked boxes for subscriptions or data sharing, making it easy for users to inadvertently opt-in to unwanted services. Additionally, some companies employ deceptive language that obscures the true nature of terms and conditions, leaving consumers unaware of their rights and obligations.
India's digital economy has seen exponential growth in recent years, driven by increased internet penetration, smartphone usage, and a burgeoning startup ecosystem. As more consumers engage with digital platforms for shopping, banking, and entertainment, the potential for exploitation through dark patterns has escalated. The rapid pace of digital transformation in India has outstripped the development of regulatory frameworks, leading to a scenario where unethical practices can thrive unchecked.
The rise of e-commerce in India, particularly during the COVID-19 pandemic, has further highlighted the need for robust consumer protections. With millions of new users entering the online marketplace, many of whom may not be fully aware of their rights or the tactics employed by companies, the risk of falling victim to dark patterns is significant. This demographic shift underscores the urgency for regulatory bodies to address these concerns proactively.
The findings of this study raise significant concerns about the ethical practices of companies listed on the Indian stock market. With such a high percentage of firms utilizing these manipulative tactics, there is a growing call for regulatory intervention. The Securities and Exchange Board of India (SEBI) has been urged to take a closer look at these practices and implement stricter guidelines to protect consumers. The implications of these findings extend beyond individual companies; they reflect a broader issue of corporate governance and accountability in the digital age.
Consumer rights advocates argue that the prevalence of dark patterns undermines trust in the marketplace. They emphasize the need for transparency and fairness in digital interactions, urging companies to adopt ethical design principles. The study's authors suggest that consumers should be educated about these tactics to better navigate the digital landscape. This education is crucial, as it empowers consumers to recognize and resist manipulative practices, fostering a more informed and resilient user base.
In light of these findings, there is a strong push for SEBI to enforce regulations that would prohibit the use of dark patterns in digital interfaces. Advocates believe that such measures would not only protect consumers but also promote a healthier business environment where companies prioritize ethical practices. Similar regulatory actions have been seen in other jurisdictions, such as the European Union's General Data Protection Regulation (GDPR), which emphasizes user consent and transparency in data handling.
Implementing regulations against dark patterns could involve establishing clear definitions of what constitutes manipulative design, providing guidelines for ethical user interface design, and enforcing penalties for non-compliance. Such regulations would send a strong message to companies that unethical practices will not be tolerated and that consumer rights must be respected.
The issue of dark patterns is not unique to India; it is a global phenomenon that has garnered attention in various markets. In the United States, for instance, consumer advocacy groups have raised alarms about the use of dark patterns in tech and e-commerce platforms. Legislative efforts are underway in several states to address these concerns, with proposals aimed at increasing transparency and protecting consumer rights. The global nature of the digital economy means that practices in one country can influence those in another, making it essential for India to align its regulatory framework with international best practices.
As countries grapple with the ethical implications of digital design, the conversation around dark patterns is evolving. More companies are recognizing the importance of ethical user experience design, not only as a legal obligation but also as a competitive advantage. Companies that prioritize transparency and user-centric design may build stronger relationships with consumers, fostering loyalty and trust.
The revelation that 95% of public companies in India are using dark patterns is a wake-up call for regulators, consumers, and businesses alike. As the digital economy continues to grow, it is imperative that ethical standards are upheld to ensure fair treatment of consumers. The call for SEBI to act on this issue is more pressing than ever, as stakeholders seek to foster a marketplace built on trust and transparency. The study serves as a critical reminder that as technology advances, so too must our commitment to ethical practices in business. By addressing the issue of dark patterns, India has the opportunity to lead by example in creating a more equitable digital landscape that prioritizes the rights and well-being of consumers.
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