‘Drip Pricing’ Scam: Govt Cautions Shoppers About Secret Fees on E-Commerce Sites
Alert, Drip Pricing Scam: Many e-commerce platforms are charging hidden charges to lure customers into online shopping during the festive season. The government has now issued a warning against this deceptive 'drip pricing' practice.
When millions of consumers look for bargains on online shopping sites such as Amazon and Flipkart during festivals, the central government issued a word of caution to consumers regarding a new scam. The government has issued a warning against a clever practice known as 'drip pricing,' where online shopping websites charge additional secret fees from consumers.
Drip pricing is a practice where the actual cost of the product is never clearly revealed. When the consumer moves to the payment stage, extra charges like 'handling fees,' 'platform fees,' or 'service tax' are added with each step. For instance, if a smartwatch has a price displayed as ₹4,000, the price goes up to ₹4,200 at the time of payment.