Source: Consumer NZ
Consumer NZ research reveals one in three shoppers spend more than intended due to manipulative online design tactics.
New Zealanders are being tricked into spending more and cancelling less, according to new research from Consumer NZ, exposing the invisible influence of ‘dark patterns’- deceptive digital design tactics used to manipulate consumer behaviour.
From hidden fees and “only one left!” scarcity cues to countdown timers and endless subscription traps, dark patterns are manipulating the choices of online shoppers, costing them time and hitting their back pockets.
The nationally representative research found that one in three New Zealanders spend more than they intended to online because of dark patterns, while nearly one-quarter say they’ve kept a subscription longer than they wanted to due to confusing or obstructive cancellation processes.
“The implications are huge. It would be conservative to say that dark patterns cost New Zealanders millions. Unfortunately, these tactics often fall into a legal grey area – exposing a major regulatory gap,” says Chris Schulz, Consumer’s senior investigative journalist.
Dark patterns include design tricks such as:
pre-ticked boxes that automatically add extras to your cart
scarcity warnings like “only one left at this price”
hidden fees that appear only at checkout, hiking the advertised price
hard-to-find cancellation buttons or multi-step unsubscribe processes
confirmshaming messages that guilt consumers into staying subscribed (with wording like: “No thanks, I’d love to stay penniless” or “Do you like wasting money?”).
The impact of these patterns is widely felt, with 93% of New Zealanders saying they had encountered scarcity cues like “only three tickets left at this price”, while three out of four people had discovered hidden fees at the checkout.
HelloFresh – a case study in confusion
Consumer asked research participants to cancel a HelloFresh subscription. The five-step process took several minutes to complete, and participants encountered a variety of dark patterns along the way. One person told Consumer that trying to unsubscribe was such a woeful experience, she wouldn’t touch the business again with a barge pole.
“Given how frustrating it can be to cancel a subscription like HelloFresh, we weren’t surprised to find that one-quarter of New Zealanders kept a subscription longer than they intended to because of a dark pattern,” says Schulz.
Need for regulatory change
“Dark patterns are omnipresent with the online shopping experience. In 2024 alone, New Zealanders spent $6 billion online. To mitigate the threats posed by dark patterns, we’d like to see prioritisation of a general ban on unfair trading and strengthening of our privacy laws. Aotearoa is currently unchecked and unregulated, and it’s New Zealanders who are paying the price,” says Schulz.
“We’re already behind the eight ball compared with other countries. The European Union, United Kingdom, United States and Australia have introduced or are developing frameworks to address unfair online trading practices. Our research has revealed the majority of New Zealanders want better rules or enforcement around appropriate use of dark patterns (53%), with nearly half wanting industry standards (49%).
“We wouldn’t tolerate a physical store blocking the exit until you bought something. We shouldn’t accept the digital equivalent either.”
Dark patterns are bad for shoppers and businesses
While dark patterns may drive a business’ short-term profits or boost data collection, Consumer warns they erode long-term trust.
Eight in ten New Zealanders believe companies using dark designs are putting profits before people, with many saying they now avoid brands that manipulate them online.
“If your product’s good, you don’t need sneaky tactics,” one research participant told Consumer. “I’d rather walk away than feel tricked.”
Notes
Read the full report on Consumers website: https://consumernz.cmail20.com/t/i-l-znyhkt-ijjdkdttjk-y/
