Rapido fined Rs 10 lakh for misleading tipping prompts, dark patterns

Rapido fined Rs 10 lakh for misleading tips

NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Roppen Transportation Services Pvt Ltd, which operates ride-hailing platform Rapido, for misleading advertisements, unfair trade practices and use of dark patterns that allegedly prompted riders to pay more before their rides were confirmed.The action followed a sector-wide examination of cab and bike-taxi aggregator platforms over practices related to advance tipping and dynamic pricing, a ministry of consumer affairs, food & public distribution press release reads.‘Higher the price, higher the chance of getting a ride’During its examination, the CCPA found that Rapido displayed prompts such as “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 rider’s booking was still being processed.According to the regulator, Rapido first quoted a fare and, after the rider booked at that price, prompted them to pay an additional amount on the ground that drivers were not accepting the original fare.The CCPA said the practice created a false impression that a rider’s chances of getting a ride depended on paying more, particularly at a stage when the consumer had already committed to the booking.‘Tip’ cannot be made a condition before rideThe CCPA said the fare shown at the time of booking already takes into account factors such as distance, time, traffic and tolls, as well as the amount payable to the driver.It therefore found no justification for subsequently suggesting that riders pay an additional amount for the same ride before it had commenced. A tip, the regulator observed, is ordinarily a voluntary payment made after a service has been provided and should not be presented as a condition for the service.The authority also referred to the Motor Vehicle Aggregator Guidelines, 2025, which require tipping features to be made available only after completion of a ride and not during booking or the ride.The authority had earlier issued notices to Uber, Ola, Rapido and Namma Yatri, directing them to comply with the 2023 dark-pattern guidelines and submit self-declarations on compliance. The CCPA’s examination of Uber and Ola is still underway.