95% of over 300 listed digital platforms were found using at least one dark pattern, according to LocalCircles
Only 7 of 23 companies that self-declared themselves dark pattern-free passed independent checks
The watchdog has urged SEBI to make dark pattern disclosures mandatory for listed and IPO-bound companies
95% Of India's Top Digital Platforms Use Dark Patterns As SEBI Tightens Scrutiny
The consumer watchdog has urged SEBI to require mandatory 'dark pattern-free' declarations from listed companies, arguing that voluntary compliance has largely failed despite recent regulatory efforts.
95% of India's Top Digital Platforms Use 'Dark Patterns' as SEBI Proposes Tougher Rules: LocalCircles
Summary
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In a rapidly growing market like India, where people are increasingly shifting towards online economic activities, nearly 95% of the top 300 publicly listed digital platforms use manipulative design tricks to influence buying decisions.
After self-audits and claims of being dark pattern-free, only seven companies out of 23 came out clean, stated LocalCircles. The findings come days after the Securities and Exchange Board of India (SEBI) proposed a Common Advertisement Code (CAC) to curb dark patterns in financial advertising.
According to LocalCircles, it is "a positive first step towards addressing such manipulative practices," but the group flagged that the code only covers how companies advertise to consumers and not how they treat them once they are on the platform for buying, subscribing, or seeking returns or refunds.
The digital watchdog wants SEBI to require a dark pattern-free "self-declaration" from every listed company and every company planning to list.
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Gap In Compliance
SEBI's draft code, released as a consultation paper, borrows from the Central Consumer Protection Authority's (CCPA) 2023 dark pattern guidelines.
If the code is adopted, it would apply across websites, mobile applications, advertisements, onboarding journeys, email campaigns, social media promotions, and investor communications for brokers, mutual funds, investment advisers, portfolio managers, depositories, research analysts, and other SEBI-regulated entities.
It would prohibit false urgency, subscription traps, hidden charges, confirm shaming, misleading default settings, and disguised advertisements. It would also restrict cashback offers, trading vouchers, and free subscriptions used to push app downloads or trading activity, and tighten rules on influencer endorsements and performance ratings.
The important point, according to LocalCircles, is that a company might check every box in SEBI's advertising code and still operate a consumer platform full of forced cancellations, deceptive pricing, and manipulative consent screens. The draft code has no reach into that side of the business yet. Self-declared "dark pattern-free" companies are not really dark pattern-free, the release states, arguing that voluntary compliance has already failed once.
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What Data Reveals
LocalCircles assessed more than 325 platforms, screened through its proprietary AI-powered detection engine based on public complaints and feedback from over 250,000 consumers across 392 districts.
Meanwhile, only five companies came out truly clean: Meesho Limited, Jockey, Hamleys, ECOS (India) Mobility & Hospitality Ltd., and Easy Trip Planners Limited.
Subsequently, the self-declaration data revealed a different story. Around 23 companies told the Central Consumer Protection Authority (CCPA) that they were "dark pattern-free" after auditing themselves. Despite submitting a self-declaration, 16 of them were still found to be using dark patterns.
Meanwhile, Meesho, William Penn Private Ltd., Jockey, Curaden India Private Ltd., Walmart India Private Ltd., Clues Network Pvt. Ltd. (ShopClues), and Fiora Hypermarket Limited came out clean.
The Regulatory Push
The most common tactic was "forced action," found in around 71% of the 237 companies studied. "Drip pricing" came next at 66%, appearing on 219 platforms, while "interface interference" and "bait and switch" each appeared on roughly 50% of the platforms reviewed.
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Digital lending, edtech, e-commerce, online banking, food delivery, travel, and online gaming had the highest prevalence, each carrying seven or more distinct dark pattern types.
The group had already submitted a dark pattern-free self-declaration framework to the regulator in March 2026, at SEBI's own request. It now wants that framework to be made mandatory and linked directly to the listing process for companies, according to LocalCircles.
Meanwhile, the reasoning is straightforward: listing enables a company to scale rapidly, making it a good opportunity for regulators to lock in honest digital practices before deceptive design becomes entrenched.