IRDAI Directs Insurers to Combat 'Dark Patterns' on Digital Platforms

• IRDAI has instructed insurers to review digital platforms for compliance with 'dark pattern' guidelines.
• The directive follows CCPA guidelines from November 30, 2023, aimed at preventing deceptive digital practices.
• This move aligns with a broader regulatory effort across the financial sector, including RBI's concerns about manipulative online designs.
• Insurers must self-assess compliance and submit a report within 15 days.
• Identified gaps require a time-bound action plan within one month to eliminate such practices.

Key Questions Answered

What are common 'dark patterns' in insurance?

Common 'dark patterns' in insurance include pre-ticked add-ons, misleading discounts, hidden charges, and forced redirects. Interface interference is also prevalent.

Will other sectors face similar scrutiny?

It is unclear if other sectors will face similar scrutiny, but the pharmaceutical sector is currently under intense regulatory surveillance regarding weight-loss drugs and loose pill sales.