CCPA fines Ola ₹10 lakh over pre-ride tipping prompts, calls practice misleading and unfair

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on ANI Technologies Pvt Ltd, which operates ride-hailing platform Ola, for seeking additional payments from passengers before their journeys were completed.

The regulator has also ordered Ola to immediately discontinue its pre-ride ‘tip’ or ‘add-on’ feature, describing it as misleading and an unfair trade practice, according to a report by The Hindu BusinessLine.

Consumer Affairs Minister Pralhad Joshi confirmed the action in a post on X, saying, “The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on Ola for misleading pre-ride payment prompts and directed the discontinuation of the feature. A firm step against dark patterns, unfair practices and misleading claims, reaffirming the commitment to protecting consumer rights and ensuring transparency.”

Why did CCPA penalise Ola?

The Authority found that Ola's interface suggested passengers could improve their chances of securing rides faster by paying an additional amount before booking.

However, the company's own booking data contradicted this impression. According to the regulator, ride requests carrying additional payments recorded lower acceptance rates than bookings without such payments.

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The CCPA observed that Ola's explanation was inconsistent with its app's messaging. While the company maintained that additional payments did not influence ride allocation, its interface suggested otherwise.

Consumers were also not informed about the lower acceptance rates or how the suggested additional payment amounts were determined.

Why pre-ride tipping was considered unfair

The regulator held that withholding such information constituted concealment of material facts under Section 2(28)(iv) of the Consumer Protection Act, 2019.

It emphasised that tipping is traditionally voluntary and occurs after a service has been delivered. Seeking gratuities before completing a journey effectively transforms them into advance payments.

The Authority maintained that changing the feature's name from 'tip' to 'add-on' did not alter its underlying nature.

Violation of aggregator guidelines

The practice was also found inconsistent with Clause 14.15 of the Motor Vehicles Aggregators Guidelines, 2025, which permits tipping only after a journey.

The CCPA noted that Ola continued displaying advance payment prompts despite an August 11 clarification from the Ministry of Road Transport and Highways prohibiting such practices.

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Dark patterns and consumer pressure

The regulator further classified the prompts as a dark pattern involving 'confirm shaming'.

By implying that passengers refusing additional payments might face longer waits or unsuccessful bookings, the interface potentially pressured consumers into spending more.

The Authority also raised concerns that pre-set payment amounts could influence passengers towards higher payments, undermining informed consumer choice.

(With PTI inputs)

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