Half of OTT users in India face difficulty cancelling subscriptions

New Delhi: A nationwide survey by LocalCircles has revealed widespread consumer dissatisfaction with Over-The-Top (OTT) platforms in India, citing the use of manipulative design tactics, also known as dark patterns, to nudge or trick users into decisions that benefit the platforms at the consumers’ expense.

The report, based on inputs from over 95,000 verified users across 353 districts, found that 50% of respondents have frequently experienced difficulty in cancelling subscriptions due to the lack of a clear option or the feature being deliberately hidden within the platform interface.

Among the nine dark patterns identified and validated across 245 platforms studied, interface interference was one of the most prevalent, with 86% of consumers stating that they have frequently encountered situations where buttons to decline offers or cancel subscriptions were “difficult to find, greyed out, or smaller in font compared to ‘Accept’ or ‘Subscribe’ options.”

According to LocalCircles, OTT platforms are known to use deceptive practices to manipulate a user interface to make it difficult for consumers to take certain actions, such as cancelling subscriptions or deleting accounts.

Another widely reported issue was forced action, with 77% of consumers saying they had to take unrelated steps, such as installing additional apps, registering separately, or sharing unnecessary personal information, in order to access content. Many users also complained of new and unexpected service terms being introduced during their subscription period, such as advertisements being shown or additional charges being levied for ad-free viewing.

Many of them bought the OTT subscription to experience ad-free content watching, unlike television, only to find, during their contract term, that the OTT platform has introduced ads or is demanding that they pay a higher price for an ad-free viewing experience.

The report also highlighted the practice of bait and switch, where 53% of users reported being unaware at the time of subscription that some shows or films would require additional rental payments. This dark pattern, the report said, was a source of significant consumer frustration.

Drip pricing was another frequent grievance, with 47% of users indicating they were often shown a lower base price upfront, only to have additional charges added at the final checkout stage. These hidden costs include convenience fees and taxes not clearly disclosed during the initial subscription process.

Recurring billing without consent, also called SaaS billing dark pattern, was experienced frequently by 24% of users. These consumers reported being charged on a periodic basis even after cancelling their subscription.

The study, conducted in light of the Central Consumer Protection Authority’s (CCPA) 2023 guidelines on dark patterns, analysed feedback from over 230,000 users across 392 districts and reviewed 245 OTT and online platforms. It found that 83% of the platforms deployed drip pricing, while subscription traps and forced action were present in 75% and 67% of the platforms, respectively.

The CCPA guidelines, which came into force in November 2023, define 13 dark patterns that are considered misleading and exploitative of consumer trust. These include practices such as automatic renewals, unclear cancellation terms, and misleading advertisements that push users towards unintended purchases or renewals.

Despite the CCPA’s notification and advisory giving OTT platforms a three-month deadline to comply, LocalCircles said the platforms have “largely ignored” the directive, calling it “an eCommerce-related guideline”.

With mounting complaints and growing consumer distrust, LocalCircles said there is an urgent need for regulatory enforcement. OTT platforms and regulators need to address OTT dark patterns and related consumer grievances as a priority.