New Delhi: A complaint has recently been made officially to the Reserve Bank of India (RBI) against several subscription-based mobile apps, alleging they use deceptive billing methods that impose unauthorised debits on users’ bank accounts.
The complaint, supported by consumer groups, raises concerns regarding increasing use of opaque auto-debit orders and exploitative behaviour in India’s digital subscription market.
The complaint is about such apps that lure subscribers with inexpensive trial plans, usually for Rs 1 or Rs 2, but reportedly mask important terms by auto-enrolling them into high-value recurring plans of between Rs 149 to Rs 699 after the trial period. Subscribers contend that not having clear communication regarding auto-renewal and charges is a violation of consumer faith and amounts to financial trickery.
Moreover, consumers complain of encountering complicated cancellation procedures. Rather than easy-to-use in-app interfaces to cancel subscriptions, numerous users are diverted to outside UPI platforms or third-party websites—a barrier especially onerous for tier-2 and tier-3 city residents with little experience using difficult digital interfaces.
The complaint underscores that these practices align with “dark patterns,” a term defined in the Central Consumer Protection Authority’s 2023 draft guidelines as manipulative interface designs that coerce users into unintended actions. Popular Indian platforms, including Kuku, Stage, and Seekho, have been singled out for allegedly exploiting regulatory gaps in digital payment systems. Social media platforms have amplified user frustrations, with many citing unauthorised deductions and unresponsive customer support teams.
Existing RBI guidelines require clear user authentication for repetitive transactions in excess of Rs 5,000. But smaller payments—ubiquitous among subscription apps—are on very little oversight, allowing platforms to auto-debit money without strong consent procedures in place.
Consumer rights groups and users impacted are now calling on the RBI and Ministry of Consumer Affairs to probe the claims and implement tighter compliance regulations. The complainants also have filed a dossier of user feedback collected from online forums, highlighting the imperative for immediate regulatory action to safeguard consumers from exploitative digital methods.
As ethical fintech practices become a subject of debate, the case highlights the urgent need to reconcile innovation and consumer protection in India’s fast-growing digital economy.