The regulator flagged FirstCry’s use of “drip pricing” as a deceptive dark pattern, forcing the ecommerce brand to revise its price display practices.
FirstCry Penalised for Deceptive Pricing
The Central Consumer Protection Authority (CCPA) has imposed a penalty of INR 2 Lakh on FirstCry (Digital Age Retail Pvt Ltd) for misleading advertisements and unfair trade practices.
- The action follows a consumer complaint that the company was charging GST at checkout despite claiming “MRP inclusive of all taxes” during product display.
- This tactic reduced actual customer discounts and violated transparency norms, as outlined by consumer protection laws.
“Drip Pricing” Identified as a Dark Pattern
The CCPA labeled FirstCry’s approach as “drip pricing”, a dark pattern that misleads customers by revealing additional costs only at the final stage of purchase.
- Example: A product advertised with a 27% discount effectively offered only an 18.2% discount after GST was added at checkout.
- This violated:
- Rule 7(1)(e) of the Consumer Protection (E-Commerce) Rules, 2020
- Guidelines for Prevention and Regulation of Dark Patterns, 2023, which prohibit hidden or delayed charges
The authority stated that such practices mislead consumers, reduce transparency, and undermine informed decision-making.
Mandatory Changes Ordered by CCPA
Following the penalty, the CCPA instructed FirstCry to take corrective measures, including:
- Displaying both original and discounted prices inclusive of all taxes.
- Clearly disclosing any extra charges such as shipping or convenience fees upfront.
- Avoiding any hidden fees or misleading pricing tactics going forward.
The agency also warned the company against repeating such practices in the future.
FirstCry Responds with Platform Updates
In response to the penalty:
- FirstCry has updated its website and mobile app to ensure that all listed prices are inclusive of applicable taxes.
- A disclaimer now reads “price inclusive of all taxes” on all product pages.
This move aims to restore consumer trust and align with CCPA’s compliance requirements.
Larger Crackdown on Dark Patterns
The action against FirstCry is part of a broader crackdown on dark patterns in ecommerce.
- In 2023, the Indian government released draft guidelines identifying 13 types of deceptive tactics, including:
- Hidden fees
- Forced continuity
- Bait-and-switch offers
- Misleading countdowns
These patterns have become more common with the rise of ecommerce, ride-hailing, and quick commerce services.
- Earlier in 2025, users flagged similar practices on platforms like Zepto, Swiggy Instamart, and Blinkit, particularly regarding hidden delivery charges and unclear discount structures.
Market Impact
Following the CCPA announcement and public scrutiny:
- FirstCry’s shares closed 4.12% lower, ending the day at INR 362.6 apiece on the BSE.
- This reflects both investor concern and the growing regulatory risk associated with non-compliance in the ecommerce sector.
