CCPA slaps Rs 10 lakh fine on Ola over pre-ride ‘tip’ feature
In Short
The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on Ola (ANI Technologies) for soliciting pre-ride tips and add-ons. Find out why the consumer regulator ruled the feature an unfair trade practice and dark pattern, ordering its immediate discontinuation.
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CCPA slaps Rs 10 lakh fine on Ola over pre-ride ‘tip’ feature
New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on ANI Technologies Private Limited, which operates ride-hailing platform Ola, for soliciting additional payments from customers before their journeys were completed.
The regulator said the pre-ride 'tip' or 'add-on' feature misled consumers, amounted to an unfair trade practice and employed a dark pattern. The order, passed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, directed Ola to discontinue the practice immediately.
"Immediately discontinue all prompts, messages, pre-set amounts and interface designs that solicit any payment over and above
the upfront fare before the journey is completed, whether described as a tip, add-on, additional fare or by any other name," the CCPA said.
The company has been asked to ensure strict compliance with the Consumer Protection Act, 2019, the Dark Patterns Guidelines, 2023, and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
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