LocalCircles has called on the Insurance Regulatory and Development Authority of India (IRDAI) and the Central Consumer Protection Authority (CCPA) to classify “privacy zuckering” as a dark pattern in online insurance platforms. The appeal follows a survey of 22,119 users, where 77% reported their personal data was misused for spam or claim rejections. The CCPA’s 2023 guidelines currently do not list privacy zuckering among the 13 recognized dark patterns, according to medianama.com.
Privacy zuckering involves user interfaces that coerce users into sharing more personal, health, or financial information than intended. LocalCircles highlighted that this data is often exploited by telecallers, intermediaries, or marketing teams, or used by insurers during claim assessments. The survey revealed 59% of respondents frequently encountered privacy zuckering, while 18% experienced it occasionally. LocalCircles is urging regulators to ban the practice, mandate independent audits of insurance platforms, and penalize non-compliance.
The survey also exposed other alleged dark patterns in the insurance sector, with 90% of users receiving repeated calls or messages, 85% forced to provide unnecessary personal details, and 82% noticing discrepancies between advertised and final prices or terms. Additionally, 80% struggled to cancel policies, and 65% discovered hidden charges later. These findings underscore concerns about consumer protection in digital insurance services in India.
LocalCircles’ petition to IRDAI and CCPA aims to expand regulatory oversight by including privacy zuckering in dark pattern rules. The organization’s data-driven approach provides a basis for potential policy changes to enhance transparency and safeguard consumer rights in India’s online insurance market.