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The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 Lakh on ride unicorn Rapido for misleading advertisements, unfair trade practices, unfair contract and dark patterns, where consumers are prompted to pay more before their rides are confirmed. The order, passed by a bench comprising chief commissioner Nidhi Khare and commissioner Anupam Mishra, follows a sector-wide examination of cab aggregators operating in India to understand pre-ride tipping and dynamic pricing practices in India. During the investigation, the CCPA found that Rapido’s app displayed users prompts suggesting specific top-ups of ₹10, ₹20 or ₹30 to improve their chances of getting a ride. The regulator held that Rapido's algorithm first quoted a fare, and then, once the rider had booked at that fare, asked the rider to pay more because ‘Captains’ (drivers) were supposedly not accepting the fare. That created a false impression that getting a ride quickly depends on paying extra fees. The CCPA held this to be "confirm shaming", a dark pattern listed under the Guidelines for Prevention and Regulation of Dark Patterns, 2023, as it creates urgency and a fear of losing the ride if the rider does not agree to pay more. Separately, the regulator examined Rapido's "set your price" slider and found its colour coding was steering pricing decisions. Raising the price surfaced a green message about a higher chance of getting a ride, while lowering it triggered a red or orange warning. This design, the CCPA held, amounted to a second dark pattern — "interface interference". A tip, as the regulator observed, is a voluntary payment made after a service has been rendered, and can not be presented as a condition for the service being provided at all. It also pointed to the Motor Vehicle Aggregator Guidelines, 2025, which require any tipping feature to be offered only after a ride is completed — not at the time of booking or during the ride. Rapido had argued that tipping on its platform is voluntary, and that the prompts simply mirrored the kind of real-time negotiation that happens offline between a rider and a driver. The CCPA rejected these submissions, holding that the timing and design of the prompts applied pressure at the moment the users seemed to be the most dependent on the platform. It also noted that Rapido had not shown any data to show that paying more actually improves a rider's chances of getting a ride, making the claim unsubstantiated and misleading. The action against Rapido is part of the CCPA's broader scrutiny of advance-tip and dark-pattern practices across ride-hailing and bike-taxi platforms. The regulator had earlier issued notices to Uber, Ola, Rapido and Namma Yatri, directing them to comply with the 2023 dark patterns guidelines and file self-declarations on compliance. Its examination of Uber and Ola is still ongoing. Besides, it also adds to the ongoing regulatory scrutiny over the advance tipping dark patterns employed by ride-hailing platforms. Earlier in August, the Ministry of Road Transport and Highways (MoRTH) directed ride-hailing aggregators to remove tipping prompts shown before or during rides, saying these violate the Motor Vehicle Aggregator Guidelines, 2025. The ministry reiterated that passengers can tip drivers only after completing a ride, with the entire amount going to the driver. Platforms also cannot suggest that tipping could improve ride confirmation, driver acceptance or service quality. The directive comes amid wider scrutiny of aggregators, including NHRC action over alleged overcharging. The 2025 guidelines also cover licensing, driver training and insurance, vehicle safety, fares and penalties, including licences of up to five years and fines of up to ₹1 Cr.
document fetched 2026-09-16 02:57 · canonical https://inc42.com/buzz/ccpa-penalises-rapido-over-advanced-tipping-prompts