- Telangana High Court seeks CCTV footage of masked men at Saifabad PS
- 6 students drown during Ganesh idol immersion
- Rollback UPI tax
- Centre rules out UPI fee rollback
- Jagan to discuss drought with party leaders today
- Naidu to lay stone and inaugurate five projects in Vizag
- Recruitment for 2,050 police, fire and prison posts notified
- CM Naidu unveils technology-driven pilgrim facilities in TirumalaÂ
No more 'advance tips' for cab rides
In Short
Govt orders Uber, Ola and Rapido to remove pre-ride tipping
Share :
New Delhi: The Union government has mandated that cab aggregators discontinue advance tipping options, with the Central Consumer Protection Authority penalising Rapido for unfair trade practices and "dark patterns" that mislead consumers into paying more before their rides.
The Central Consumer Protection Authority (CCPA) has fined Rapido Rs 10 lakh for unfair business practices, including advance tipping and "dark patterns." Investigations are currently underway into the business practices of other major ride-hailing platforms like Uber and Ola.
Consumer affairs secretary Nidhi Khare stated that tipping should be completely voluntary and at the discretion of consumers after they have taken the ride. Rapido's algorithm was found to use "Confirm Shaming," a dark pattern, by prompting riders to pay more after booking, creating a false sense of urgency.
The government has ordered cab aggregators to stop providing advance tipping options even before booking a ride as the practice is misleading and unfair, consumer affairs secretary Nidhi Khare said on Wednesday.
The secretary's comment comes a day after the Central Consumer Protection Authority (CCPA) slapped a Rs 10 lakh penalty on ride-hailing platform Rapido for various unfair business practices, including advance tipping for drivers. The authority is currently examining the business practices of Uber and Ola.
Responding to queries related to taxi ride aggregators, Khare said the National Consumer Helpline has received a lot of complaints against them.
"(Consumers were) basically alleging that actually even before taking the ride, there was a concept of introducing an advance tip," she said, adding that consumers were being cajoled that unless they pay the tip, they will not get the ride. "Now this we found to be misleading and also an unfair trade practice. And after detailed investigation into the matter and also after hearing, we have ordered discontinuation of this kind of you know built-in mechanism," said the secretary, who also heads the CCPA.
Will make Tirumala, Tirupati world-class spiritual centres
Naidu to join Seva Sankalp Abhiyan in Varanasi today
AP clears Rs 5,912-crore urban projects to be funded by ULBs
Modi gave wings to the great Indian dream
People to engage in a month-long intense cleanliness campaign
Ex-mayor’s brother held for plotting crime
