new delhi, Oct. 3 -- The government will examine if cash-on-delivery (COD) 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. The ministry of consumer affairs is reviewing all such complaints and is expected to hold consultations with e-commerce companies, consumer rights organisations and industry bodies to arrive at a practical 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 concerns through National Consumer Helpline (NCH). Online shoppers are reportedly opting for advance payments to avoid additional levy on cash on delivery, according to the ministry. Amazon charges Rs.7-10, while Flipkart and FirstCry charge Rs.10 additionally for payments made after an order is delivered. Nearly 65% of consumers opted for cash on delivery in their last online purchase, with fashion and clothing products showing the highest reliance on COD, according to a February 2024 report of a survey covering 35,000 consumers across 25 states conducted by the Indian Institute of Management-Ahmedabad. The preference to pay post delivery was particularly strong among low-income households with an annual income of less than Rs.3.6 lakh. Consumer protection against online malpractices is critical as India's e-commerce market- currently pegged at about $160 billion-is projected to surge to $345 billion by FY30, according to a May report by India Brand Equity Foundation (IBEF). With 881 million internet users, India is expected to become the world's third-largest online retail market by 2030. When a consumer places an order opting for COD, Flipkart's message states: "Due to handling costs, a nominal fee of Rs.10 will be charged for orders placed using this (COD) option. Avoid this fee by paying online." In the case of Amazon, it says: "A convenience fee of Rs.10 will apply." Queries sent to the ministry of consumer affairs, Amazon, Flipkart, and FirstCry remained until press time."The issue is that platforms are charging a fee for opting cash on delivery and pushing consumers to pay in advance, which goes against the spirit of consumer rights. The department is in the process of reviewing such cases," said one of the two people cited above. Industry representatives said the COD fee, typically minimal, was to curb frequent order cancellations, which disrupt inventory and logistics planning. However, Consumer Voice, a consumer protection group, counters the charges and delivery delays are causing concern, with buyers feeling cheated as their money stays blocked while the platforms earn interest on it....