Most of us have experienced the small thrill of spotting a discount sign in a store. A bright tag announces a “special deal,” and suddenly the decision feels easier. Without hesitation, the product is added to the basket. After all, why miss out on a bargain?
But sometimes the so-called bargain isn’t a bargain at all. Prices may remain unchanged while clever signage creates the illusion of savings. These subtle strategies reveal a bigger story about how businesses influence behaviour through design and psychology. This is known as dark patterns in marketing.
We need to look closely at the brain and behaviour to understand why dark patterns are so effective in marketing. It is also clear in 2026, leaders must use psychology ethically when selling.
What Are Dark Patterns in Marketing?
Dark patterns are not accidents. They are deliberate choices in design, marketing, or communication intended to push people toward an outcome that benefits the business, often at the expense of the customer.
In physical retail, they take the form of oversized discount labels that draw attention away from the actual price. In digital spaces, they may show up as endless subscription loops, fake countdown timers, or unclear cancellation buttons.
Another common tactic is false hierarchy, where visual web design elements such as colour, size, and placement are used to make one option appear far more prominent than another. The “Accept” button is bold and brightly coloured. The “Decline” or “Manage preferences” link is small, muted, and easy to miss.
At their core, dark patterns rely on exploiting natural human tendencies. They work because our brains are wired to take shortcuts when making decisions. These shortcuts, known as cognitive heuristics, save time and mental effort but can leave us vulnerable to deception.
Not all influence is unethical. Persuasive design, when combined with transparency, can help people make informed and confident choices. This distinction is central to nudge theory, the concept popularised by behavioural economist Richard Thaler and legal scholar Cass Sunstein. Nudge theory holds that the way choices are designed and presented can guide people toward better decisions without removing their freedom to choose.
A well-designed nudge helps. A dark pattern exploits.
The problem arises when persuasion becomes manipulation, when the design hides the truth rather than clarifying it.
Why the Brain Falls for Deceptive Discounts
Understanding why dark patterns succeed requires stepping into the psychology of decision-making. Several well-documented cognitive processes explain why discount tags and urgency cues so easily override rational thought.
Loss Aversion
People experience the pain of losing something more intensely than the pleasure of gaining the same thing. Missing out on a discount feels like a loss, even if the discount is not genuine.
The simple act of labelling an item as “on sale” activates this powerful emotional response, creating pressure to buy now rather than risk regret later.
Anchoring
The first price we encounter acts as a reference point. If a product is presented as “reduced” from a higher amount, our perception of value is shaped by that original figure, regardless of whether it was ever the true selling price. Anchoring narrows our judgment, making the discounted price appear more attractive than it really is.
Scarcity and Urgency
Messages such as “limited stock” or “offer ends today” spark a sense of scarcity. From an evolutionary perspective, scarce resources signalled survival, so our brains remain finely tuned to react strongly when something might run out. In modern shopping environments, this translates to making rushed decisions without a thorough evaluation.
Confirmation Bias
Once we believe we are getting a good deal, we unconsciously seek evidence to confirm it. A brightly coloured tag or a store announcement can be enough to reinforce our assumption. Instead of questioning whether the price has truly changed, we focus on enjoying the feeling of saving.
These biases are not flaws in thinking; they are natural human tendencies. Dark patterns exploit them, transforming everyday shopping into a carefully orchestrated psychological performance.
The Everyday Face of Dark Patterns
While pharmacies provide a clear example, dark patterns are woven through countless aspects of consumer life.
In supermarkets, multi-buy offers often cost more than buying items individually, yet the word “deal” draws people in. In fashion retail, inflated original prices lead to dramatic markdowns that fail to accurately reflect reality. Online travel sites use pop-ups that announce how many people are viewing the same hotel room, nudging users to act with urgency. Subscription services hide cancellation options in confusing menus, hoping customers will give up before finding the exit.
The same patterns appear in mobile app marketplaces, where in-app purchases use small print and confusing button placement to obscure costs, and where unsubscribing from an app’s premium tier often requires navigating through the device’s settings rather than the app itself.
Each of these practices thrives on the same principle: presenting information in a way that favours the business rather than the consumer. The result is erosion of trust. Shoppers begin to question whether any deal is genuine, and loyal customers risk turning into sceptics.
When these practices cross the line from persuasion into false advertising, they become a matter for regulators and consumer protection law.
Drip Pricing: The Hidden Fee That Changes Everything
One of the most pervasive dark patterns in online shopping is drip pricing. It works by advertising an attractive headline price at the start of the purchasing process, then gradually adding fees, surcharges, and service charges as the customer moves through the shopping cart toward checkout.
By the time the true total appears, the customer has already invested time, entered personal details, and made a psychological commitment to the purchase. Walking away at that point feels like a loss, which is why drip pricing is so effective and so deceptive. This is known as the sunk cost effect. Businesses that rely on drip pricing are counting on this bias to override rational evaluation.
The practice is common across industries. Airlines have long advertised base fares that exclude booking fees, payment surcharges, and baggage costs. Event ticketing platforms add service fees that only appear at the final step. Cinema chains, hotel booking sites, and even mobile app purchases have all used variations of the same approach, presenting a headline number designed to get the customer through the door and burying the real price deep in the transaction flow.
A prime example of this is in the United States, where the Federal Trade Commission (FTC) took action against Intuit, the company behind the tax filing software TurboTax. The company was running a widespread advertising campaign promoting “free” tax filing. The FTC found that approximately two-thirds of tax filers were ineligible for the free service, yet the company’s advertising gave the strong impression that everyone could file at no cost. Users would enter their sensitive financial information only to discover at the end of the process that they needed to upgrade to a paid plan. In 2024, the FTC issued a Final Order barring Intuit from advertising any product as free unless it is free for all consumers, or unless the company discloses the percentage of people who qualify. Intuit also agreed to pay $141 million in a separate settlement with all 50 US state attorneys general. The case is a clear example of how dark patterns in web design and false advertising combine to mislead consumers at scale.
Subscription Traps and the Difficulty of Saying No
The subscription business model has become dominant across software, media, food delivery, and fitness industries. For consumers, subscriptions offer convenience and access. For businesses, they create predictable recurring revenue. But where dark patterns enter the picture, subscriptions can become traps that are easy to enter and deliberately difficult to leave.
The pattern is familiar. Signing up takes a single click. Cancelling requires navigating through multiple screens, answering retention questions, reading warnings about what will be lost, and eventually finding a small, low-contrast button buried at the bottom of a page. This use of visual hierarchy, where the option the company wants you to choose is large and prominent while the option to leave is hidden or diminished, is one of the most widely documented dark patterns in web design and mobile app interfaces.
The same principle extends to email communications and newsletter signups. Pre-ticked checkboxes that subscribe users to marketing emails by default, confusing unsubscribe flows that require multiple confirmations, and renewal notices that emphasise what you will lose rather than clearly presenting your options are all examples of nudge theory being used against the consumer rather than for them.
A high-profile Australian case illustrates the scale of the problem. In October 2025, the Australian Competition and Consumer Commission (ACCC) filed Federal Court proceedings against Microsoft, alleging the company misled approximately 2.7 million Australians about their subscription options. When Microsoft integrated its generative artificial intelligence tool, Copilot, into Microsoft 365 Personal and Family plans, subscribers received emails presenting only two choices: accept the AI integration at a higher price or cancel. A third option, a “Classic” plan that retained existing features at the original price without Copilot, was not disclosed in those emails. It was only revealed if a subscriber navigated to their account page and initiated the cancellation process. The ACCC alleges this was a deliberate design choice intended to steer consumers toward the more expensive plans. Microsoft has since issued an apology and offered refunds to eligible customers, though the legal proceedings continue.
The Microsoft case is significant because it demonstrates how dark patterns in subscription models are not limited to small or obscure companies. Even global technology providers with established reputations can face regulatory scrutiny when the design of their communications and account management flows fails to present consumers with clear, honest choices.
The Ethical Dilemma for Businesses
From a business perspective, the temptation to use dark patterns is easy to understand. They deliver results. Sales rise, conversion rates improve, and short-term revenue targets are met. Once one competitor employs these tactics, others often follow to remain competitive.
Yet what is gained in the short term can be lost in the long run. Customers who discover they have been misled rarely forget the experience. The memory of deception lingers, damaging brand reputation and customer loyalty. Trust, once broken, is extremely difficult to rebuild.
The ethical question is therefore central. Should businesses exploit psychological tendencies for immediate gain, or should they harness behavioural insights to create value that strengthens relationships? The first approach may boost numbers today, but the second builds resilience and credibility for years to come.
Dark Patterns in Digital Privacy and Data Collection
Dark patterns do not only influence what we buy. They also shape what personal data we give away and how that data is used.
Across websites and mobile apps, consumers are routinely presented with cookie consent banners and privacy policy notices that use dark patterns to steer behaviour. The “Accept All” button is large, brightly coloured, and requires a single click. The option to manage preferences or decline is smaller, greyed out, or buried behind additional screens. The result is that the vast majority of users consent to extensive data collection without meaningfully understanding what they have agreed to.
This practice has drawn significant regulatory attention, particularly in the European Union under the General Data Protection Regulation (GDPR). The GDPR requires that consent to data collection and processing be “freely given, specific, informed, and unambiguous.” It also requires that withdrawing consent be as easy as granting it. In practice, many companies have struggled to meet these requirements or have actively worked around them.
One of the most prominent cases involves Meta Platforms, the parent company of Facebook and Instagram. The European privacy advocacy organisation NOYB (None of Your Business) has filed multiple complaints against Meta under the GDPR, alleging that the company used dark patterns to undermine user consent. In one case, Meta introduced a “pay or okay” model in Europe, where users had to either consent to tracking for personalised advertising or pay a subscription fee of up to €251.88 per year to retain their privacy. NOYB argued this did not constitute freely given consent, as it forced users to choose between their fundamental right to data protection and an unreasonable financial cost. The European Data Protection Board fined Meta €390 million for bypassing GDPR consent requirements, and the Court of Justice of the European Union has since ruled that Meta cannot use contractual necessity or legitimate interest as a basis for processing personal data for advertising without genuine opt-in consent.
The issue extends to generative artificial intelligence. In 2025, Meta announced plans to use public data from Facebook and Instagram accounts across the European Union to train its AI models. Rather than seeking opt-in consent, Meta relied on a claimed “legitimate interest” and placed the responsibility on users to find and complete an opt-out form. NOYB filed complaints in 11 EU countries, alleging that Meta’s opt-out process was deliberately obstructive, featuring hidden forms, redirect mechanisms, and unnecessary requirements designed to discourage users from exercising their rights. The Irish Data Protection Commission intervened, and Meta paused the processing. It later resumed with what regulators described as improved safeguards, though advocacy groups continue to challenge the adequacy of those measures.
For business leaders, the lesson is clear. Using dark patterns to obtain consent for data collection, whether for marketing emails, personalised advertising or AI training, creates legal and reputational risk that far outweighs any short-term gain in data volume. Transparent privacy practices, written in clear and plain language, build the kind of trust that sustains long-term customer relationships. Obscuring the truth behind confusing interfaces and buried policy documents does the opposite.
The Neuroscience of Trust and Manipulation
Trust is not just a social construct; it has biological underpinnings. Neuroscience studies show that trust activates reward pathways in the brain. When customers believe a business is honest, dopamine is released, reinforcing positive associations with the brand.
Deception, by contrast, triggers threat responses. The amygdala becomes active, heightening caution and reducing willingness to engage. This explains why consumers who feel tricked often disengage completely, even when they are later offered genuine deals.
For leaders, the message is clear. Manipulation may activate short-term buying behaviour, but it simultaneously undermines the neurological basis for long-term loyalty. By understanding the brain’s reward and threat systems, businesses can see why ethical influence is not only the right choice but also the more sustainable one.
The Regulatory Response: Australian Consumer Law and Beyond
Regulators around the world are increasingly taking a firm stance against dark patterns, and Australia is no exception.
Under the Australian Consumer Law (ACL), there is currently no standalone prohibition on dark patterns. Enforcement relies on existing provisions, including the prohibition on misleading or deceptive conduct (Section 18), false or misleading price representations (Section 29), and unconscionable conduct provisions. When dark patterns are egregious enough to meet these thresholds, the ACCC can and does take action.
In recent years, that action has accelerated. In 2025 alone, the ACCC pursued Webjet for a $9 million penalty over drip pricing of airfares, penalised Dendy Cinemas $19,800 for failing to display total ticket prices inclusive of booking fees, and filed Federal Court proceedings against both JustAnswer and (as previously mentioned) Microsoft over misleading subscription practices. The Good Guys received a $13.5 million penalty for misleading store credit promotions. Each of these cases involved businesses using design, pricing structure or communication to obscure the true cost or terms of a transaction.
The ACCC has made it clear that this is only the beginning. In February 2026, ACCC Chair Gina Cass-Gottlieb announced that manipulative and false online practices, including subscription traps and dark patterns, are a headline enforcement priority for 2026–27. A survey of over 3,000 Australians conducted as part of the ACCC’s Digital Platform Services Inquiry found that 72 percent had encountered potentially unfair practices on online marketplaces within a 12-month period, including hidden charges, forced subscription signups, and accidental paid subscriptions.
The regulatory landscape is also evolving. In late 2024, the Australian Treasury published a consultation paper proposing amendments to ACL to introduce a general prohibition on unfair trading practices. The proposals include prohibitions on dark patterns that manipulate or distort consumer decision-making, reforms to address drip pricing, restrictions on requiring online account creation that leads to unnecessary data collection and marketing, and new obligations around subscription transparency and cancellation.
For Australian businesses, the direction of travel is unmistakable. Whether or not dark pattern legislation has passed at the time of reading, the ACCC is demonstrating through enforcement that existing consumer protection laws already capture many of the practices that dark patterns rely on. Regulatory compliance is no longer about meeting a minimum standard. It is about building business practices that can withstand scrutiny in an environment where consumer trust is both the regulator’s priority and the foundation of sustainable growth.
Lessons for Business Leaders
Leaders who want to use psychology responsibly can adopt practices that respect the customer while still encouraging action.
Be transparent with pricing. Make discounts genuine and easy to understand. When customers see honesty, they reward it with repeat purchases.
Reframe value without deception. Instead of creating fake urgency, highlight real benefits. Show how a product solves a problem, improves life, or delivers lasting quality. Major retail events like Black Friday demonstrate just how powerful these psychological triggers can be when used well. Understanding the psychology behind Black Friday can help businesses design campaigns that drive genuine urgency.
Encourage informed decision-making. Provide clear comparisons, unit pricing, and straightforward explanations. Empowered customers feel respected and are more likely to return.
Build loyalty through consistency. When promises match reality, the brain’s trust circuits strengthen. Over time, this creates a loyal base that is far more valuable than any short-term sales spike.
Leverage behavioural science ethically. Understanding biases does not mean exploiting them; it means recognising and addressing them. Instead, use the knowledge to remove friction, simplify choices, and make purchasing less stressful.
Practical Steps for Consumers
Awareness is the first line of defence against dark patterns. When shoppers recognise the cues, they can step back and reassess.
Pause before reacting. Urgency is often manufactured. Taking a moment to breathe and think restores rational control.
Check the details. Look beyond the large tags to compare actual prices. Small print often reveals the truth.
Question scarcity. If a deal seems too urgent, consider whether the resource is genuinely limited or simply being framed that way.
Reflect on needs, not cues. Ask whether you would buy the product without the discount sign. If the answer is no, the purchase may be driven more by manipulation than by value.
Choosing the Light Side of Influence
Dark patterns in marketing reveal a powerful truth. Human decisions are profoundly shaped by design and psychology. Every bright tag, urgent message, or tricky interface taps into ancient survival instincts, turning rational shoppers into impulsive buyers.
But just because these tools exist does not mean they must be used in manipulative ways. Businesses face a choice. They can continue down the path of short-term gains built on deception, or they can embrace transparency, trust, and ethical influence. The first may deliver immediate results, but the second creates sustainable success, stronger customer relationships, and a brand that thrives on respect.
For leaders, the challenge is clear. Use the insights of psychology not to deceive, but to empower. Influence can be a force for good when it helps people make choices aligned with their values and needs. That is how businesses grow with integrity, how customers remain loyal, and how influence itself becomes a tool for lasting change.
Do You Recognise These Dark Patterns in Your Marketing?
As regulators close in on dark patterns, the businesses that thrive will be the ones already using ethical behavioural science to sell. Dr Leanne Elich works with businesses to build sales and marketing strategies grounded in neuroscience. Through coaching and sales consulting, we help you convert more customers while staying on the right side of consumer trust and the law.
