80% of Indian OTT users face dark patterns

A majority of OTT users in India believe streaming platforms are using manipulative design tactics that make it harder to cancel subscriptions, avoid additional charges or make informed purchasing decisions, according to a new survey by LocalCircles. The study found that 80% of users have encountered at least one “dark pattern” while using OTT services.

Dark patterns refer to interface and design techniques that nudge users into actions that benefit platforms, such as continuing subscriptions, sharing more data or spending additional money, often without clear disclosure. The findings have renewed concerns about consumer protection in India’s rapidly growing streaming market.

The survey, which gathered responses from more than 1.18 lakh people across 324 districts, found widespread complaints about hidden cancellation options, unexpected charges and subscription-related practices that make it difficult for users to opt out of services. More than 60% of respondents reported facing issues linked to subscription traps or cancellation barriers.

One of the most common complaints involved “forced actions”, where users are required to complete unrelated steps or provide additional information to access content or services. According to the survey, 77% of respondents said they had experienced situations where unnecessary information was requested or new service conditions were imposed unexpectedly.

Consumers also raised concerns about changing service terms after subscribing. In several cases, users who had signed up for ad-free experiences reported being shown advertisements later or being asked to pay additional fees to continue receiving ad-free viewing. Similar concerns have emerged globally, including regulatory scrutiny of streaming platforms over subscription and advertising practices.

The issue has drawn attention because India already has regulations targeting such practices. The Guidelines for Prevention and Regulation of Dark Patterns, introduced in November 2023, prohibit 13 deceptive practices, including subscription traps, drip pricing, disguised advertisements, false urgency and bait-and-switch tactics. The rules apply across digital platforms, including OTT services.

Consumer groups argue that enforcement remains a challenge. OTT users continue to report issues such as auto-renewals, unexpected rental charges for select content despite active subscriptions, hidden cancellation routes and charges that continue even after cancellation requests.

The findings highlight a growing tension in the streaming industry, where platforms seek to improve retention and monetisation while regulators and consumer advocates push for greater transparency. As competition intensifies among OTT players, the debate around dark patterns is likely to remain at the centre of discussions about digital consumer rights. StoryBoard18