CCPA Slaps Fine On PhysicsWallah Over Dark Pattern Violations

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹5 Lakh on edtech major PhysicsWallah for using dark patterns on its platform, including a pre-selected donation option through which it collected about ₹2.47 Cr from more than 21.36 Lakh users.

In an order dated June 1, the consumer watchdog said PhysicsWallah (PW’s) website and app deployed practices that violated the Consumer Protection Act, 2019, the E-Commerce Rules, 2020, and the government’s dark pattern guidelines.

The case was initiated suo motu by the regulator after it examined PW’s platform and identified concerns around its checkout process and access to courses advertised as free.

According to the order, PW automatically added a ₹10 donation to purchases through a pre-ticked “Donate for PW Foundation” checkbox. Users had to manually deselect the option to avoid the additional charge.

The feature remained active between February 2024 and December 2025 and generated approximately ₹2.47 Cr in donations, the authority said.

The regulator classified the practice as “basket sneaking”, a dark pattern that involves adding charges to a transaction without obtaining explicit consent from consumers.

The CCPA also objected to messaging displayed alongside the donation option, which highlighted charitable activities such as funding marriages for needy individuals, supporting children’s education and providing healthcare assistance. 

According to the authority, the messaging could influence users to retain the donation through guilt and amounted to “confirm shaming”.

Collecting Data Without A Cause

Separately, the regulator found that users were required to provide their mobile number and email address to access courses marketed as free. Following tests conducted using multiple accounts, the authority concluded that the information was not necessary to provide access to the content and categorised the practice as “forced action”.

The order noted that PW had informed the authority that corrective changes had already been implemented. However, during an inspection conducted on December 22, 2025, the CCPA found that the donation option continued to remain selected by default.

The edtech startup argued that the donation feature was clearly disclosed and that users were free to opt out. It also claimed that nearly 64% of users chose not to donate, indicating that consumers were aware of the option.

The authority rejected the argument, stating that visibility does not amount to consent and that consumers must take an affirmative action before an additional charge can be imposed.

PW also compared its registration requirements for free courses with government-backed education platforms such as DIKSHA and SWAYAM. 

The consumer protection body dismissed the comparison, saying those platforms require user information for specific purposes such as assessments and certifications, whereas PW failed to demonstrate why the data was necessary to access the content.

The CCPA held that PW violated provisions relating to consumer rights, misleading advertisements and unfair trade practices under the Consumer Protection Act.

The authority directed the company to discontinue all dark patterns across its platforms, pay the penalty and submit a compliance report within 15 days.

The CCPA, on the same day, also fined McAfee ₹1 Lakh for dark patterns around subscription renewal where it only offered “Accept Risk” or “Renew Now”, with no neutral “Cancel” or “Skip” option.  

The orders come at a time when the Centre is stepping up scrutiny of dark patterns across India’s digital economy. Over the past year, the CCPA has taken action against multiple internet companies, including Zepto, Flipkart and FirstCry, for practices ranging from basket sneaking and drip pricing to misleading subscription flows.

The move also follows industry-wide concerns about the widespread use of dark patterns. A survey by LocalCircles found that only a small fraction of major ecommerce platforms operating in India were free of dark patterns, despite the government’s guidelines coming into force in 2023.

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