Govt scans e-commerce cos’ COD charges, refund delays

The government will examine if cash-on-delivery charges imposed by online retailers are aimed at nudging consumers to pay upfront, and why refunds are delayed or blocked if prepaid orders are cancelled, said two people aware of the matter.

- Dhirendra Kumar

The ministry of consumer affairs is reviewing all such complaints and is expected to hold consultations with e-commerce companies, consumer rights organizations, and industry bodies to arrive at apractical solution that balances operational needs with consumer protection, the people said on condition of anonymity since details are not public yet.

They didn’t disclose the number of such complaints received, but encouraged customers to raise their concerns through the National Consumer Helpline (NCH).

Online shoppers are reportedly opting for advance payments to avoid additional levy on cash on delivery (COD), according to the ministry. Amazon charges ₹7-10, while Flipkart and FirstCry charge ₹10 additionally for payments made after an order is delivered. This is in addition to platform fees, which also vary across online retailers.