Over 1 in 2 consumers surveyed who bought something via app/SAAS/software platforms said they experienced dark patterns like subscription trap, drip pricing and bait and switch

February 13, 2024, New Delhi: Deceptive patterns or “dark patterns” are tricks used by websites and apps that make you do things that you didn't mean to, like buying or signing up for something. A new crop of Artificial Intelligence (AI) chatbot apps is pushing users into pricey subscriptions. A new report has found that scammers are flooding app stores with software claiming to leverage OpenAI's ChatGPT. The apps often bring high subscription charges and feature intrusive advertising. New AI apps try to push users into paying subscription fees ranging from $9.99 to $69.99, according to a recent study by cybersecurity firm Sophos. The apps also use tactics such as tightly limiting app usage and functionality without a subscription. Usually, the apps offer a free trial, but as the apps come loaded with many ads and restrictions, many opt for subscription. But even then the app function is often less than ideal. However, the catch comes when the users want to unsubscribe, which is a task in itself.

Experts warn that even legitimate apps could pose a privacy risk. In normal course, some apps will ask for access to your device's information such as your location, contacts, and even screen recording capabilities. These permissions are required for legitimate apps to perform their core functions, so people are used to granting access, but it can be abused to obtain your data, monitor your locations, or spy on you. There are other instances where the consumer opts for a free app or one time service but later gets drawn into a subscription service. As a consumer recently shared on the LocalCircles platform “When you’re trying to cancel your Microsoft Office subscription before the auto-renew kicks in, but they require you to talk to a live person to do that, and the live support is closed.” Another consumer has shared, “Apple Arcade subscription auto-renew can’t be cancelled without immediately losing access. In a third case, a consumer shared how a one-time piano practice app download for their child via app store turned out to be a monthly subscription for them with no easy way to cancel. It was only several charges later that they were able to log into a laptop device and cancel the subscription. These are just a few dark patterns of the hundreds of them reported by consumers since India banned use of “dark patterns” via a gazette notification issued by the Central Consumer Protection Authority (CCPA) on November 30th, 2023. The rules for prevention and regulation of dark patterns are applicable to all advertisers, sellers and platforms selling goods and services in India. The government has identified 13 types of dark patterns which include false urgency, basket sneaking, confirm shaming, forced action, subscription trap, interface interference, bait and switch, drip pricing, disguised advertisement, nagging, SaaS (software as a service) billing and rogue malwares identified as dark patterns.

With many consumers voicing their anger at being trapped into an unwanted or expensive subscription trap or an app available via Apple app store or Google playstore with forced action or disguised advertisements, LocalCircles has conducted a survey to know about the consumer experiences with dark patterns related to apps and software subscription services. The survey received over 44,000 responses from users of apps or software subscription services located in 331 districts of India. 64% respondents were men while 36% respondents were women. 45% respondents were from tier 1, 32% from tier 2 and 23% respondents were from tier 3, 4 and rural districts.

67% of consumers surveyed who bought something via app platforms and SAAS platforms said something that was sold to them as a one-time software/ service has often turned out to be a subscription trap

The survey first asked “How often have you experienced with app platforms and SAAS platforms that some that was sold to you as a one-time software/service turned out to be a subscription trap (where an amount was charged to you each month or year without consent)?” The query received 11,371 responses with 22% indicating “very frequently” and 45% of respondents stating “sometimes”. In addition, 22% of respondents stated they have “never” had such an experience and 11% of respondents opted for “can’t say”. To sum up, 67% of consumers surveyed who bought something via app platforms and SAAS platforms said something that was sold to them as a one-time software/ service has often turned out to be a subscription trap.

71% of consumers surveyed who bought something via app platforms and SAAS platforms experienced hidden charges associated with purchases which were not presented upfront but only later when they were making the payment

As is the case on some online travel platforms, consumers frequently report hidden charges when buying apps and software subscriptions. The survey asked “How often have you experienced with app platforms and SAAS platforms that there are hidden charges (other than taxes) that are associated with the purchase which are not presented upfront but only later when you are making the payment?” The query received 11,286 responses with 28% indicating that they faced hidden charges “very frequently”; 43% indicated it happened “sometimes” and 22% indicated that it happened “rarely”. In addition, 7% of respondents stated that they “never” experienced such a situation. To sum up, 71% of consumers surveyed who bought something via app platforms and SAAS platforms said that they experienced hidden charges associated with purchases which were not presented upfront but only later when they were making the payment.

50% of consumers surveyed who bought something via app platforms and SAAS platforms have experienced Bait and Switch dark patterns where the app/ software delivered to them was different than the one promised to them

Dark patterns like Bait and Switch approach is something recognized and experienced by many who download apps via app store or playstore. The survey asked “How often have you experienced with app platforms and SAAS platforms that a Bait and Switch approach is used (app/ software delivered to you is different than the one promised/ displayed/ sold)?” This query received 10,975 responses with 7% of respondents stating “very frequently”; 43% indicating “sometimes” and 19% stating “rarely”. In addition, 19% of respondents indicated “never” have they been duped and 12% of respondents gave no clear response opting for “can’t say”. To sum up, 50% of consumers surveyed who bought something via app platforms and SAAS platforms said that they have experienced Bait and Switch dark patterns where the app / software delivered to them was different from the one promised/ sold to them.

25% of consumers surveyed who downloaded apps via app platforms experienced that some apps had rogue malware

Cyber experts often warn against downloading unfamiliar apps, software and even attachment from unknown email addresses as they may carry malware designed to corrupt your system. The survey asked “How often have you experienced with app platforms that apps available for download had rogue malware (apps that steal private information from devices or install unauthorized software?” Out of 11,353 who responded to this query 7% indicated “very frequently”; 18% indicated “sometimes” and 18% “rarely”. In addition, 18% of respondents stated that they “never” experienced such a situation while 39% of respondents gave no clear response opting for “can’t say”. To sum up, 25% of consumers surveyed who downloaded apps via app platforms experienced that some apps had rogue malware (which stole private information from their devices or installed unauthorized software).

In summary, dark patterns in apps and software subscriptions can be riskier than most consumers realize both from a financial and social impact perspective. The survey shows that 67% of consumers who bought something via app platforms and SAAS platforms said something that was sold to them as a one-time software/ service has often turned out to be a subscription trap. It also highlights that 71% of consumers surveyed who bought something via app platforms and SAAS platforms experienced hidden charges associated with purchases which were not presented upfront but only later when they were making the payment. In addition, 50% of consumers surveyed who bought something via app platforms and SAAS platforms have experienced Bait and Switch dark patterns where the app / software delivered to them was different than the one promised. When it comes to bad software that stole private or financial information or installed other apps, 25% of consumers surveyed who downloaded apps via app platforms experienced that some apps had rogue malware (which stole private information from their devices or installed unauthorized software). What these findings indicate is that dark patterns are prevalent in the apps and software subscription services in India and are impacting majority of the users. LocalCircles is in the process of conducting consumer feedback and research-based audits at the platform level and sensitizing the CCPA to take corrective actions. While some like hidden charges and subscription traps can be relatively easily corrected by platforms and their sellers making upfront disclosures, some others like rogue malware or bait and switch will likely require a comprehensive effort by platforms like app store and playstore.

LocalCircles will share the results of this survey with CCPA and MEITY so immediate actions can be taken on this issue.