New Delhi, Oct. 2 -- 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.

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 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 their concerns through the National Cons...