Kuku FM and Several Other Platforms Under Fire for ‘Dark Patterns’; RBI Receives Official Complaint

Business

While the Ministry of Consumer Affairs continues its campaign to raise awareness about misleading ‘dark patterns’ used by apps and e-commerce platforms, the Reserve Bank of India (RBI) has now received an official complaint highlighting deceptive auto-debit practices allegedly employed by several digital services. Among the platforms under scrutiny is Kuku FM, a popular audiobook and content streaming app.

₹1 Trial, ₹699 Auto-Debit?

According to reports, certain apps have been offering trial subscriptions for as low as ₹1 or ₹2, but without properly informing users that these trials trigger automatic deductions ranging from ₹149 to ₹699 once the trial ends. Consumers allege this is a deliberate tactic to boost revenue through deceptive billing, and many have asked the RBI to treat it as a form of digital fraud and initiate action.

₹600 Crore Funding Raises Eyebrows

In a parallel development, media sources claim that Kuku FM is in advanced stages of raising around ₹600 crore (approximately $70 million) from Singapore-based Granite Asia (formerly Granite Global Ventures). Given the concerns that the platform’s revenue and valuation may have been inflated due to these alleged dark patterns, the timing of this investment has raised serious questions.

Other Platforms Under Investigation Too

Kuku FM is not alone. Indian platforms like Stage and Seekho have also been accused of adopting similar misleading billing methods. These practices reportedly exploit vulnerabilities in digital payment systems and risk financial harm to unsuspecting consumers while creating an illusion of growth for investors.

Minister Issues Stern Warning

Union Minister for Consumer Affairs, Pralhad Joshi, has expressed grave concerns over the increasing use of dark patterns in digital commerce. He emphasized that the guidelines on dark patterns were drafted after thorough discussions with stakeholders, including leading e-commerce firms and industry bodies.

Joshi has urged companies to integrate these guidelines into their internal governance frameworks and consumer protection mechanisms. Highlighting the surge in complaints, he said that the National Consumer Helpline (NCH) has witnessed a sharp rise in consumer grievances related to dark patterns.

Taking note of the situation, the Minister has directed all major e-commerce companies to conduct regular internal audits aimed at identifying and eliminating these misleading techniques.