Deceptive online design tactics are costing New Zealanders millions
New research from Consumer NZ shows that New Zealanders are increasingly being misled into spending more and cancelling less, thanks to the subtle influence of “dark patterns” — deceptive design tactics crafted to manipulate consumer behaviour. These tactics range from hidden fees and “only one left!” scarcity prompts to countdown timers and hard-to-exit subscription traps. Together, they nudge online shoppers into choices that waste their time and drain their wallets. According to a nationally representative survey, one in three New Zealanders has spent more online than intended because of dark patterns, and nearly a quarter have kept subscriptions longer than they intended 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
· Confirm-shaming 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 various 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,” Chris says.
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,” Chris says. “We’re already behind the eight-ball compared with other countries. The European Union, the United Kingdom, the 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 the 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.”
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