Module: | KYC, NPAs, Advances & Investment Valuations
Q209: Consider the following statements regarding mis-selling grievances and banned digital 'Dark Patterns':
1. A bank must establish a mechanism to actively seek feedback from customers within exactly 30 days from the sale of any product to ensure the features and risks were understood.
2. If no specific regulator timeline is provided, customers are permitted to lodge a mis-selling complaint within a maximum window of 30 days of receiving the signed terms.
3. The dark pattern of 'Forced Action' exclusively refers to the practice of falsely implying product scarcity using countdown timers to mislead immediate action.
4. 'Subscription Trap' is defined as a deceptive practice involving making cancellation impossible, hiding the cancellation option, or forcing auto-debits for a purportedly free subscription.
Which of the statements given above is/are correct?
2. If no specific regulator timeline is provided, customers are permitted to lodge a mis-selling complaint within a maximum window of 30 days of receiving the signed terms.
3. The dark pattern of 'Forced Action' exclusively refers to the practice of falsely implying product scarcity using countdown timers to mislead immediate action.
4. 'Subscription Trap' is defined as a deceptive practice involving making cancellation impossible, hiding the cancellation option, or forcing auto-debits for a purportedly free subscription.
Which of the statements given above is/are correct?
✅ Correct Answer: B
The correct answer is B. Statement 1 is correct: The amendments introduce a mandatory 30-day post-sale feedback mechanism to combat mis-selling and verify customer comprehension of product features.
Statement 2 is correct: The framework standardizes the mis-selling complaint window, granting customers exactly 30 days from receiving the signed terms to formally lodge a grievance if no other timeline is specified.
Statement 3 is incorrect: The guidelines define 'Forced Action' as requiring users to buy an additional product or share personal data (like contact lists) just to use a basic service.
The practice of falsely implying scarcity via countdown timers is officially defined as 'False Urgency'. Statement 4 is correct: The directives categorize the deliberate obstruction of cancellations and unauthorized auto-debits for free trials as a banned 'Subscription Trap'.
Statement 2 is correct: The framework standardizes the mis-selling complaint window, granting customers exactly 30 days from receiving the signed terms to formally lodge a grievance if no other timeline is specified.
Statement 3 is incorrect: The guidelines define 'Forced Action' as requiring users to buy an additional product or share personal data (like contact lists) just to use a basic service.
The practice of falsely implying scarcity via countdown timers is officially defined as 'False Urgency'. Statement 4 is correct: The directives categorize the deliberate obstruction of cancellations and unauthorized auto-debits for free trials as a banned 'Subscription Trap'.