Daijiworld Media Network - New Delhi
New Delhi, Sep 16: The government has directed cab aggregators to discontinue advance tipping options offered before a ride is booked or completed, saying such practices can mislead consumers and amount to an unfair trade practice.
Consumer Affairs Secretary and Central Consumer Protection Authority (CCPA) Chief Commissioner Nidhi Khare said on Wednesday that the National Consumer Helpline had received several complaints against cab aggregators over pre-ride tipping mechanisms.
According to the complaints, passengers were allegedly encouraged to pay an advance tip on the premise that doing so could improve their chances of getting a ride.
"Now this we found to be misleading and also an unfair trade practice," Khare said, adding that following a detailed investigation and hearing, authorities had ordered discontinuation of the built-in mechanism.
Khare clarified that tipping is entirely voluntary and should be left to the consumer's discretion after the ride has been completed.
The action comes a day after the CCPA imposed a Rs 10 lakh penalty on Roppen Transportation Services Pvt Ltd, which operates the ride-hailing platform Rapido, for misleading advertisements, unfair trade practices, unfair contract terms and the use of deceptive "dark patterns" in its ride-booking interface.
The CCPA's action followed a sector-wide examination of cab and bike-taxi aggregators, focusing on pre-ride tipping and dynamic pricing practices. The authority has also issued notices to platforms including Uber, Ola, Rapido and Namma Yatri, directing them to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023. Investigations concerning Uber and Ola are currently underway.
During its examination, the CCPA found that the Rapido app displayed prompts including "Higher the price, higher the chance of getting a ride" and "Captains aren't accepting at Rs 60. Try adding +10, +20, +30" while a booking was still being processed.
According to the regulator, Rapido's algorithm initially quoted a fare to a rider. After the rider booked the ride at that fare, the app allegedly prompted the rider to pay more, claiming that drivers were not accepting the original amount.
The CCPA said the practice could create a false impression that paying an additional amount would increase the chances of getting a ride quickly, particularly after the rider had already committed to the booking.
The authority classified the practice as "Confirm Shaming", a dark pattern recognised under the 2023 guidelines, as it could create a sense of urgency and fear of losing the ride if the consumer refused to pay more.
The CCPA also examined Rapido's "Set your price" slider and found that its interface encouraged users to increase the fare. Raising the price displayed a "higher chance of getting a ride" message, while lowering it triggered a warning. The authority classified the practice as "Interface Interference", another dark pattern under the guidelines.
The CCPA further said that the fare displayed at the time of booking already takes into account factors such as distance, travel time, traffic, tolls and the amount payable to the driver.
It therefore found no justification for subsequently asking passengers to pay an additional amount for the same ride before the journey had started.
Khare said tipping is a voluntary payment and should be left entirely to the consumer's discretion after the ride. The government has accordingly ordered cab aggregators to discontinue mechanisms that seek to obtain such payments before the service is completed.