A new LocalCircles survey shows 80% of Indian OTT users encounter deceptive online tactics, including hidden cancellation options and unexpected fees. With the government already having rules against these practices, the findings could lead to stricter regulatory enforcement, potentially affecting how streaming platforms manage subscriptions.
What The Survey Reveals
A recent nationwide survey by the consumer platform LocalCircles has brought attention to widespread issues with design practices on Over-The-Top (OTT) streaming services. The report, based on feedback from over 1.18 lakh users across 324 districts, indicates that 80% of consumers feel they have been manipulated by so-called 'dark patterns.' These are deceptive interface designs intended to trick users into spending more money or preventing them from ending their subscriptions.
Key consumer complaints include the use of 'bait and switch' tactics, where content is not included as expected, and 'subscription traps' where cancellation options are intentionally hidden or obscured. Additionally, users reported 'drip pricing,' where extra charges appear only at the very end of the payment process, and automatic subscription renewals that occur even after a user has attempted to cancel.
Regulatory And Business Risks
The Central Consumer Protection Authority (CCPA) issued guidelines in 2023 to ban such deceptive practices. However, the survey suggests that these tactics remain common. For the streaming industry, which has grown to over 601 million viewers in India as of 2025, this gap between regulation and actual user experience creates a clear regulatory risk. If the government decides to enforce existing rules more strictly, companies may be forced to redesign their user interfaces and billing processes.
For investors, these practices are often linked to efforts to reduce subscriber churn—the rate at which users stop using a service. If regulators successfully mandate easier cancellation and transparency, streaming companies could face higher churn rates, as it will become simpler for users to leave platforms they no longer use.
Specific Platform Complaints
Users reported encountering these issues across a wide range of popular streaming platforms. The report explicitly mentioned that consumers cited experiences with services including Zee5, SonyLIV, Amazon Prime Video, JioHotstar, Netflix, YouTube, Apple TV, and Airtel Xstream Play.
Notably, the report highlighted a spike in specific user complaints regarding Zee5 during the FIFA tournament, with allegations focused on misleading subscription terms and difficulties in the refund and cancellation process. LocalCircles has communicated these findings to the Ministry of Information and Broadcasting and the CCPA, calling for tighter enforcement to protect consumers from these manipulative designs.
What To Watch Next
The most important factor for investors in this sector will be how the Ministry of Information and Broadcasting and the CCPA respond to these latest findings. Investors should monitor for any new official directives, penalties, or compliance orders that may require OTT platforms to change their interface designs. Changes to how these platforms handle subscriptions could impact their ability to retain subscribers, directly influencing revenue models that have historically relied on automated or difficult-to-cancel subscriptions.