4 hrs ago
Government orders cab apps to end advance tipping requests
The Indian government says cab apps should not ask riders for tips before a ride starts.
Officials said tipping should be voluntary and decided after the ride.
They received complaints that people felt they had to pay extra to get a cab.
The Central Consumer Protection Authority investigated Rapido.
It fined Rapido’s operator ₹10 lakh for several alleged unfair practices.
The authority said Rapido showed messages suggesting that paying more could help a rider get a ride.
Officials said this could pressure people into spending more money.
They classified the practice as a deceptive design called “Confirm Shaming.”
Investigations into Uber and Ola are still continuing.
The government ordered cab aggregators to discontinue built-in tipping options offered before rides begin.
Consumer Affairs Secretary Nidhi Khare called advance tipping misleading and an unfair trade practice.
The Central Consumer Protection Authority fined Rapido’s operator ₹10 lakh over alleged unfair practices.
The authority said Rapido prompts suggested that paying more could improve a rider’s chances of getting a ride.
Investigations into Uber and Ola continue, while notices were issued to several platforms including Namma Yatri.
- Who
- The Central Consumer Protection Authority, Consumer Affairs Secretary Nidhi Khare, and cab aggregators including Rapido, Uber, Ola, and Namma Yatri.
- What
- The government ordered platforms to stop advance tipping options and the regulator fined Rapido’s operator ₹10 lakh over alleged unfair practices.
- Where
- India.
- When
- The order was announced on Wednesday, one day after the Rapido penalty was announced.
- Why
- Officials said advance tipping and prompts to pay more could mislead or pressure consumers and amount to unfair trade practices.
Key facts
- Penalty
- ₹10 lakh imposed on Roppen Transportation Services Pvt Ltd, which operates Rapido.
- Advance tipping
- The government said tips should remain voluntary and be offered at the consumer’s discretion after a ride.
- Regulator
- The Central Consumer Protection Authority issued the action.
- Rapido prompts
- The app displayed messages suggesting that higher payments could increase the chance of getting a ride.
- Dark pattern
- The regulator classified the practice as “Confirm Shaming” under India’s 2023 guidelines.
- Investigations
- The Central Consumer Protection Authority is examining the business practices of Uber and Ola.
- Notices
- Uber, Ola, Rapido, and Namma Yatri were directed to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
Quotes
Central Consumer Protection Authority
India’s consumer protection regulator
“The practice was held to constitute 'Confirm Shaming', a dark pattern identified under the Guidelines for Prevention and Regulation of Dark Patterns, 2023, as it creates a sense of urgency and fear of losing the ride if the consumer does not agree to pay more”
livemint.com
“Rapido's algorithm first quoted a fare to the rider and, after the rider booked at that fare, prompted the rider to pay more on the ground that drivers were not accepting the original price.”
telegraphindia.com
Nidhi Khare
Consumer Affairs Secretary and head of the CCPA
“Now this we found to be misleading and also an unfair trade practice. And after detailed investigation into the matter and also after hearing, we have ordered discontinuation of this kind of you know built-in mechanism”
telegraphindia.com
livemint.com
Sources
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