Answer By law4u team
Online marketplaces like Amazon, Flipkart, eBay, and others have become the primary choice for shopping. While they offer convenience, sometimes buyers face hidden costs that appear only at checkout or after payment. These hidden charges can include shipping fees, taxes, handling fees, or other add-ons. In most countries, marketplaces and sellers must disclose all applicable charges clearly before the buyer confirms the order. Non-disclosure can be considered unfair or deceptive business practice.
Are Marketplaces Liable for Non-Disclosure of Charges?
1. Legal Responsibility of Marketplaces
- Marketplaces are generally liable if they control the checkout experience, pricing display, and payment processing.
- Even if the seller sets the price, the marketplace is responsible for ensuring transparent pricing and full disclosure.
- Many consumer protection laws treat marketplaces as “e-commerce platforms” with duty to provide clear pricing information.
2. Responsibility of Sellers vs Marketplaces
- In many cases, marketplaces act as intermediaries, but they still must ensure compliance with consumer laws.
- Sellers are responsible for accurate product pricing and applicable charges.
- Marketplaces must verify and display correct charges and take action if sellers mislead buyers.
3. What Counts as “Non-Disclosure”?
Non-disclosure includes:
- Showing a low price initially but adding extra charges only at checkout.
- Not displaying shipping costs until after the user enters details.
- Charging taxes or handling fees without clear mention.
- Adding “convenience fees” or “service charges” after payment.
Consumer Rights and Legal Protections
1. Unfair Trade Practices
- Hidden charges are considered unfair or deceptive practices.
- Consumers can claim that the business violated transparency norms.
2. E-Commerce Rules and Consumer Protection Laws
- In many countries, regulations require full disclosure of final price before checkout.
- In India, Consumer Protection Act 2019 and E-commerce Rules mandate clear disclosure of price and charges.
- In the USA, FTC rules require clear pricing and disclosure of all mandatory fees.
3. False Advertising and Misleading Claims
- Advertising a lower price but adding charges later can be treated as false advertising.
- Marketplaces must correct misleading ads and compensate consumers if harm occurs.
What Should Consumers Do?
1. Check the Final Order Summary
Always review:
- Total price including shipping, taxes, and fees.
- Delivery charges and estimated delivery date.
- Any “additional charges” line item.
2. Ask for Breakdown of Charges
If charges are unclear:
- Contact customer support for clarification.
- Ask for an itemized invoice.
3. Raise a Complaint Immediately
If hidden charges are discovered:
- Raise a dispute through the marketplace’s grievance mechanism.
- Request cancellation and refund if the charge was not disclosed.
4. Escalate to Consumer Protection Authorities
If the marketplace refuses to help:
- File a complaint with consumer courts or online consumer grievance portals.
- In India, complaints can be filed through the National Consumer Helpline or Consumer Commission.
Example
Scenario:
A customer orders a smartphone from a marketplace for ₹15,000. At checkout, the final amount becomes ₹16,800 due to undisclosed shipping and handling fees.
Steps the Consumer Should Take:
1. Cancel the order immediately if possible, due to hidden charges.
2. Contact customer support and ask for a detailed invoice and clarification.
3. Request a refund if the additional charges were not disclosed before payment.
4. Raise a dispute under the marketplace grievance policy.
5. File a complaint with consumer protection authorities if the marketplace refuses to resolve.
6. Check future purchases carefully and avoid sellers or platforms with hidden fee history.
