CCPA Imposes ₹5 Lakh Penalty On PhysicsWallah For Employing Dark Patterns On Its Platform

Holding that PhysicsWallah employed dark patterns in violation of consumer protection norms, the Central Consumer Protection Authority (CCPA) has imposed a ₹5 lakh penalty on the ed-tech platform over its donation and data-collection practices.

A coram of Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra passed the order in a suo motu case against PhysicsWallah over alleged unfair trade practices, misleading advertisements, and violations of consumer rights on its website and mobile application.

The proceedings stemmed from allegations that the platform displayed a pre-selected "Donate for PW Foundation" option during checkout, automatically adding ₹10 to the payable amount unless users chose to remove it.

The Authority also examined PhysicsWallah's requirement that users furnish personal information, including mobile numbers and email IDs, before accessing courses advertised as "free."

Another issue under scrutiny was the use of donation prompts referring to financial assistance for marriages, children's education and healthcare. According to the Authority, such messaging was capable of exerting emotional pressure on consumers while they were making payment decisions.

After a preliminary inquiry, the CCPA formed a prima facie view that the practices could amount to unfair trade practices, misleading advertisements, and violations of consumer rights under consumer protection laws and the Dark Patterns Guidelines. The matter was then referred to the Director General (Investigation) for a detailed probe.

The matter was subsequently referred to the Director General (Investigation) for a detailed probe.

The Director General concluded that the platform's design amounted to "Basket Sneaking", "Forced Action" and "Confirm Shaming" under the Dark Patterns Guidelines.

PhysicsWallah denied the allegations. It argued that donations were voluntary, clearly disclosed, and could be removed before payment. The company also contended that collecting basic personal information for free courses was necessary for educational, operational, and security purposes. It further stated that the pre-selected donation feature had been discontinued after receipt of the Authority's notice.

Accepting the findings of the investigation, the Authority observed, ".the Authority finds that the issues arising in the present matter pertain to manipulative interface design, collection of consumer consent through pre-selected choices, emotional persuasion during monetary transactions, and conditioning access to so-called "free" educational content upon compulsory disclosure of personal information.”

The Authority held that interface designs or commercial practices that manipulate consumer choice, secure monetary benefit through deceptive means, or induce consumers into unintended decisions would fall within the ambit of an unfair trade practice under the Consumer Protection Act.

It further held that a consumer purchasing educational services cannot be presumed to have consented to making a charitable donation merely because the donation option was pre-selected by default.

“The practices adopted by the opposite party are also in violation of Rule 4(3) of the Consumer Protection (E-Commerce) Rules, 2020, which mandates that no ecommerce entity shall adopt any unfair trade practice in the course of business on its platform or otherwise,” the Authority said.

The Authority noted that PhysicsWallah continued to operate the pre-selected donation mechanism even after issuance of the notice. The feature remained active until December 24, 2025.

Regarding the donation-related messaging, the Authority observed, “Such messaging, when presented simultaneously with a pre-selected donation option during a commercial transaction, had the effect of invoking moral pressure and emotional obligation upon consumers to retain the donation amount rather than exercising a free and neutral choice.”

The Authority was not persuaded by the company's justification for mandatory disclosure of personal information. It held that requiring users to provide such information to access content advertised as "free" was not reasonably connected to the stated objective of providing personalized educational services.

The Authority found that the practice impaired informed consumer choice. It further held that offering content as free while conditioning access on compulsory disclosure of personal information amounted to a manipulative interface practice.

Holding that the impugned practices violated consumer rights, amounted to unfair trade practices and contravened the E-Commerce Rules and the Dark Patterns Guidelines, the Authority directed PhysicsWallah not to engage in such practices on its platform, website, application, or any other digital interface.

It also imposed a penalty of ₹5 lakh and directed the company to submit a compliance report within 15 days.

For Physicswallah Limited: Advocates Prashant Mishra and Rahul