Consumer Awareness about Online Subscription Traps and Hidden Charges

Author :

Dr.S.Tamilmani

Associate Professor

Department of Corporate Secretaryship,

PSG College of Arts & Science

Coimbatore-641014.

e-mail:tamilmani@psgcas.ac.in

Co-Author

Dr.S.Archana

Assistant Professor

Department of Corporate Secretaryship,

PSG College of Arts & Science

Coimbatore-641014.

e-mail:drsarchana@psgcas.ac.in

Abstract

The rapid growth of digital platforms and e-commerce services has significantly transformed consumer purchasing behaviour. Many online businesses now adopt subscription-based models for delivering services such as entertainment streaming, software applications, and digital memberships. While these services offer convenience and continuous access to products and services, they have also led to the emergence of practices such as online subscription traps and hidden charges. Subscription traps occur when consumers are unknowingly enrolled in recurring payment schemes through misleading advertisements, unclear terms and conditions, or automatic renewal systems. Hidden charges, including undisclosed service fees, delivery charges, and taxes, often appear only at the final stage of payment, thereby affecting consumer decision-making. These practices raise serious concerns regarding transparency, fairness, and consumer rights in digital transactions. In India, the Consumer Protection Act, 2019 and regulatory oversight by the Central Consumer Protection Authority aim to protect consumers from unfair trade practices in online commerce. This study examines the level of consumer awareness regarding online subscription traps and hidden charges and evaluates the effectiveness of existing legal safeguards in protecting consumers. The research adopts a doctrinal and analytical methodology using secondary data from legal provisions, academic literature, and regulatory reports. The study concludes that although legal mechanisms exist to address deceptive practices, limited consumer awareness and complex digital marketing strategies continue to expose consumers to financial risks in online transactions.

Keywords

Consumer Awareness; Online Subscriptions; Hidden Charges; Consumer Protection Act, 2019; Digital Consumer Protection; Unfair Trade Practices; E-Commerce.