Striving to deliver positive consumer experiences is not just a best practice—it is becoming a more prominent component of compliance in debt collection, especially when it comes to consumer communication. As consumer preferences have shifted toward digital channels, the success of a business’s debt recovery operation (whether in-house or outsourced to a third-party agency) hinges on engagement through online platforms, emails, and text messaging.

However, without proper design or planning, digital outreach can cross a fine line becoming manipulative or even deceptive. These practices are known as “dark patterns,” and they can cause significant harm to both consumers and businesses. The danger of dark patterns lies not just in the unethical manipulation of users but in the long-term consequences of such tactics, from damaged consumer trust to legal ramifications.

But what exactly constitutes a dark pattern in digital communication? Let’s look at the official definitions and examples, the risks they pose to consumers, the consequences businesses can face, how to avoid inadvertent dark pattern design, and how TrueAccord has approached delivering consumer-centric debt collection communications since day one.

What Are Dark Patterns? Examples, Risks, & Consequences

Dark patterns are design practices that mislead or manipulate consumers into taking actions that do not align with their true intent or preferences. These tactics typically exploit psychological triggers, confusing language, and hidden choices to push users toward making decisions they might not otherwise make.

In recent years, dark patterns have drawn increased scrutiny from federal and state regulators. The Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) have made it clear that such practices are not just unethical but also illegal. According to the FTC, dark patterns are considered “unfair or deceptive” business practices under Section 5 of the FTC Act. In 2022, the FTC published a report titled “Bringing Dark Patterns to Light,” highlighting these manipulative tactics and the growing enforcement against them. The report honed in on four common dark pattern tactics:

• Burying key terms and junk fees
• Making it difficult to cancel subscriptions or charges
• Tricking consumers into sharing data
• Misleading consumers and disguising ads

In addition to the focus areas within the FTC’s report, some other examples of dark patterns in digital communication include:

• Confirm-shaming: Using guilt-inducing language to discourage consumers from unsubscribing or opting out, such as “Are you sure you want to miss out on this exclusive offer?”
• Trick buttons: Designing “unsubscribe” buttons to look like “continue” or “learn more” buttons, leading users to click on something they didn’t intend to.
• Urgency tactics: Creating a false sense of urgency by suggesting a limited-time offer is about to expire, even when it isn’t.
• Pre-checked boxes: Adding pre-ticked boxes for additional services or subscriptions, requiring users to actively opt-out to avoid unwanted charges.

These tactics are not just annoying for consumers—they also undermine trust in the brands that use them. In the context of debt collection, where trust is already fragile, dark patterns can have a particularly devastating impact. Dark patterns can cause businesses to lose credibility, customer loyalty, the ability for communications to get delivered through digital channels, and even revenue. When consumers feel manipulated, they may report a company’s emails as spam, impacting deliverability and overall the effectiveness of digital engagement.

The risks of dark patterns go beyond consumer dissatisfaction and lower email open rates—they can lead to significant legal and financial consequences. Various laws, including the Consumer Protection Act of 2019 and regulations by the California Privacy Protection Agency, explicitly prohibit the use of dark patterns in obtaining consent for data collection. Violating these laws can result in penalties, along with further damage to a company’s reputation in the eyes of the consumer.

In the long run, the use of dark patterns in digital communication risks creating a negative feedback loop: the more consumers feel misled, the less likely they are to engage with the business, and the less effective digital communications will be. This is why it’s crucial for companies to adopt transparent, user-friendly practices.

How to Avoid Dark Patterns

Avoiding dark patterns is not just about following the law—it’s also about fostering trust and transparency with consumers. Here are some key strategies to ensure your digital communications are free from manipulation:

• Be Transparent: Clearly disclose all costs, fees, and terms. If there are any charges involved, they should be easy to find and understand.
• Use Clear, Honest Language: Avoid language that might mislead or confuse consumers. Be direct and straightforward.
• Avoid Manipulative Language: Never use guilt-tripping or fear-inducing tactics to push consumers into decisions.
• Simplify the Decision-Making Process: Make it easy for consumers to make informed decisions by avoiding “choice architecture” that limits their ability to make fair choices.
• Provide Symmetry in Choice: Ensure that privacy-protective options are as easy to select as less secure alternatives.
• Make it Easy to Opt-Out: Ensure that unsubscribe links or opt-out buttons are clearly visible and easy to use, without hidden steps or confusing layouts.

How TrueAccord Leads the Way in Compliant Consumer Communications in Debt Collection

At TrueAccord, we take pride in being a leader in ethical and compliant digital communication since our inception in 2013. We’ve always believed that transparent, user-friendly communication builds trust, which ultimately leads to better resolutions for consumers and better repayment rates for businesses.

We make a concerted effort to ensure that our communications are free of dark patterns by focusing on both the design and messaging of our digital interactions. Our emails and text messages are carefully crafted to follow modern user experience (UX) standards, ensuring that they are clean, clear, and easily understood.

• Brand Consistency: Every message we send out follows consistent branding with the right colors, fonts, and logos. This helps consumers recognize us as a legitimate company and reduces the risk of being mistaken for a phishing scam.
• Clear Messaging: We prioritize clarity in our messaging. We make sure that everything we say is relevant, easy to understand, and free from confusing jargon or manipulative language.
• Error-Free Communication: We carefully review our content for any spelling or formatting errors. Consumers often make snap judgments about the legitimacy of a message based on visual cues, so it’s crucial to maintain a professional appearance.
• Easy Navigation: All our links work, and consumers are always redirected to the correct pages. If there’s ever an issue, we flag it quickly to ensure that the consumer experience remains seamless.
• Compliance and Trust: We are committed to being fully compliant with regulations, but more importantly, we focus on building trust with the consumer. By providing clear, actionable, and honest communication, we can help consumers navigate their debt repayment process more effectively.

Moreover, our commitment to transparency ensures that every communication we send out, whether via email or mobile, is accompanied by clear disclosures to further legitimize our efforts and foster a stronger relationship with the consumer.

As mentioned above, a lot of the regulations that have come out specifically about dark patterns have been in recent years. But with over a decade of experience in digital debt collection, it has always been our duty at TrueAccord to ensure we are not inadvertently causing dark patterns in communications or any part of the repayment process—not because it’s a compliance requirement but because we know that when a consumer trusts and engages with your communications, you have better liquidation results.

Don’t Risk Dark Patterns—Partner with Experts in Collections & Compliance

Dark patterns are a serious issue in digital communication, and while they may offer short-term gains, they can have long-lasting consequences on a company’s reputation, legal standing, and customer trust. By avoiding these deceptive practices and focusing on transparent, honest, and user-friendly communications, businesses can build stronger relationships with their customers and avoid the legal pitfalls associated with dark patterns.

At TrueAccord, we have always been at the forefront of recognizing the importance of ethical communication in debt collection. By prioritizing transparency, trust, and compliance, we not only ensure a better experience for consumers but also achieve better results for our clients. After all, when consumers trust the process, they are more likely to engage and succeed in resolving their debts—making for a better outcome for everyone involved.

Ready to partner with an industry-leader in compliant digital-first debt collection? Schedule a consultation today!

Sources:

• CFPB
• FTC