Rs 10 lakh fine slapped on Ola for ‘tip to ride’ nudge | India News

NEW DELHI: Central consumer protection authority (CCPA) has imposed a penalty of Rs 10 lakh on ANI Technologies, which operates ride-hailing platform Ola, for misleading consumers into paying an additional fare to improve their chances of getting a faster ride.It has also directed the platform to immediately discontinue display of all prompts, messages, interface designs, pre-set amounts, or any other dark pattern elements that “solicit, nudge, coerce or psychologically pressure consumers into paying any amount, whether described as a tip, add-on, additional fare or by any other name, over and above the upfront fare displayed at the time of booking, prior to the completion of the journey”.The action follows a similar order and Rs 10 lakh penalty in Sep against ride-hailing platform Rapido for a similar violation. CCPA had also ordered Rapido to discontinue this practice. TOI has learnt that CCPA is also investigating similar complaints against another popular ride-hailing platform.The penalty so far seems to have had little impact as such platforms are continuing the practice.The authority took up a complaint it received in May 2025 alleging that Ola’s app was prompting customers to pay tips in advance out of fear that their bookings could be delayed or drivers might not accept their rides. The app displayed the message, “adding a tip might help increase the chances of getting a ride faster”, along with pre-set tip amounts.Ola had defended this, saying that it only offered customers an option to voluntarily reward drivers and the entire tip went to them. The company also argued that ride allocation and driver acceptance were determined by standardised algorithms that did not take tipping behaviour into account. It maintained that customers had equal access to rides irrespective of whether they chose to pay an additional amount.The company had also told the authority that it had modified the user interface, presenting the payment as an optional add-on. However, the CCPA observed that Ola had not provided technical evidence or backend documentation to substantiate its claim that tipping did not influence ride allocation.
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The regulator said suggesting that an additional payment could improve the chances of securing a quicker ride could create a misleading impression among consumers and undermine the voluntary nature of tipping. It also said that consumers should not be made to feel that they need to pay over and above the disclosed fare to receive a basic service.
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