New Delhi. The Central Consumer Protection Authority has imposed a ₹10 lakh penalty on ride-hailing platform Rapido for misleading advertisements, unfair trade practices and the use of dark patterns that allegedly prompted riders to pay more before their bookings were confirmed.
The action against Roppen Transportation Services Pvt Ltd, which operates Rapido, followed a sector-wide examination of cab and bike-taxi aggregators over practices relating to pre-ride tipping and dynamic pricing. The authority had earlier issued notices to Uber, Ola, Rapido and Namma Yatri, asking them to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
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Rapido’s ‘Pay More’ Prompts Come Under Scrutiny
During its examination, the CCPA found that Rapido displayed prompts such as “Higher the price, higher the chance of getting a ride” and “Captains aren’t accepting at Rs 60. Try adding +10, +20, +30” while a rider’s booking was still being processed.
The regulator observed that Rapido initially quoted a fare to a customer and, after the rider accepted that amount, prompted the user to increase the price on the ground that drivers were not accepting the original fare.
According to the CCPA, the practice created an impression that the rider’s chances of getting a vehicle quickly depended on agreeing to pay an additional amount. Since the consumer had already committed to the booking process, the authority said there was limited scope for negotiation.
The regulator held that this amounted to “Confirm Shaming”, a dark pattern identified under the 2023 guidelines. It said the design created urgency and a fear that the ride might not be secured unless the consumer agreed to pay more.
‘Set Your Price’ Slider Also Questioned
The CCPA also examined Rapido’s “Set your price” feature and found that the slider was colour-coded in a manner that could influence the rider’s pricing decision.
According to the authority, the fare initially displayed to a customer already took into account factors including distance, travel time, traffic, tolls and the amount payable to the driver.
Against this background, the regulator found no justification for subsequently suggesting that the rider pay an additional amount for the same journey before the ride had started.
The CCPA also observed that a tip is ordinarily a voluntary payment and should not be presented in a manner that makes it appear necessary for obtaining the service. The authority rejected Rapido’s submissions regarding the manner in which such tips were presented.
Uber and Ola Also Under Examination
The action against Rapido forms part of a broader examination of pricing and pre-ride payment practices across major ride-hailing platforms operating in India.
The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, said its examination of Uber and Ola on similar issues remains ongoing.
The regulator’s scrutiny is focused on whether digital interfaces and pricing mechanisms used by ride-hailing platforms comply with consumer protection rules and the Guidelines for Prevention and Regulation of Dark Patterns, 2023. The guidelines seek to prevent interface designs that mislead or manipulate consumers into making choices they may not otherwise have made.
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