Marching towards the light: Unveiling dark patterns and its impact on customers

Marching towards the light: Unveiling dark patterns and its impact on customers

Know what are dark patterns and the impact it has on customers

Technology is evolving faster than ever and so is the way in which consumers are doing shopping. Consumer preferences have been changing, health, safety, speed and convenience have become a priority for them. Consumers who had never undertaken online shopping have started and consumers who used to do online shopping, have increased the same. In addition to convenience and ease of use, online methods have also proven to be more efficient and sustainable for both consumers and organisations.

A key area of interest is the way online platforms are designed and the manipulative practices used on them. These manipulative practices or unethical strategies are designed to lead to exploiting cognitive and behavioral biases of consumers.  Various types of unfair or abusive practices are used by certain deceptive organsations to trick or manipulate consumers to generate additional profit are called ‘dark patterns’. 

Many dark patterns emerge because some organisations want to see results — a certain number of newsletter signups, or items in a shopping basket. A classic example of dark pattern is unsubscribing from a mailing list. Often, the button to unsubscribe is buried under multiple confirmation windows, or worse, hidden in tiny text at the bottom of an email.  This is designed intentionally to make the process difficult, hoping users will give up halfway.

Some other examples of dark patterns include:

  1. Disguised advertisements

    Advertisements that look like independent content.

  2. Forced continuity

    Making it difficult to cancel subscriptions.

  3. Hidden costs

    Adding unexpected charges at the last step of a transaction.

While dark patterns can lead to short-term gains in conversions or data collection, they risk alienating customers in the long run. In a digital landscape where trust is critical, these tactics can cause severe reputational and financial damage. There is also a potential for legal repercussions. In recent years, regulatory bodies have started cracking down on dark patterns. The European Union’s General Data Protection Regulation (GDPR), for example, includes provisions to penalize websites that use confusing or deceptive methods to obtain user consent for data collection. 

Given the onset of the festive season, where there is an uptake in shopping activity, there will be an increase in the number of online users as more consumers would turn to online platforms for their purchases. The increase is also a result of major ecommerce organisations launching annual sales during this time to offer significant discounts and a wide range of products to attract shoppers. This is a time for shoppers to stay vigilant in order to avoid dark patterns.

Below are some measures that can be taken to prevent becoming a victim:

  1. Stay informed

    Educate yourself about common dark patterns, such as disguised ads, hidden costs, and forced continuity.

  2. Read carefully

    Always read the terms and conditions, privacy policies, and any prompts before making decisions.

  3. Use browser extensions

    Consider using tools that can detect and warn you about dark patterns.

  4. Be skeptical of urgency

    Watch for tactics that create a false sense of urgency, like countdown timers or limited-time offers.

  1. Check for clear options

    Look for straightforward choices, such as clear opt-in and opt-out options for subscriptions.

  2. Take your time

    Don’t rush through decisions, especially when signing up for services or making purchases.

  3. Research

    Look up reviews or discussions about a website or app to see if others have encountered dark patterns.

Tackling dark patterns involves the collective efforts of government, consumers and organisations. While consumers need to be aware of unfair practices that fall under the terminology of dark patterns, their rights, and grievance redressal options, organisations need to understand that instead of manipulating customers, they should trust that users will make appropriate selections when they are given genuine choice. Safeguarding customers with responsible practices will pave the way for building trust, that will, in the long run, contribute to the well-being and success of the society, consumers and organisations. 

Author

Mustafa Surka

Partner, Forensic Services, Risk Advisory Consumer Markets & Retail Leader

KPMG in India


Access our latest insights on Apple or Android devices