CCPA fines Rapido ₹10 lakh over dark patterns; Uber, Ola under review

The Central Consumer Protection Authority (CCPA) in India has fined Roppen Transportation Services Private Limited, the operator of ride-hailing platform Rapido, a hefty ₹10 lakh for misleading advertisements and unfair trade practices. The fine was imposed after the CCPA investigated various practices used by cab and bike-taxi aggregators in India, focusing on pre-ride tipping and dynamic pricing.

During their review, the authority discovered that Rapido displayed misleading prompts to riders while their bookings were still being processed. These prompts included messages such as "Higher the price, higher the chance of getting a ride" and "Captains aren't accepting at ₹60. Try adding +10, +20, +30." The CCPA classified this practice as "Confirm Shaming," a dark pattern, as it created urgency and pressured riders into paying more before their rides even started.

Additionally, the authority found that Rapido's "Set your price" slider influenced riders' choices due to its color scheme, which made increasing the fare appear more advantageous. The fine was imposed due to the authority's classification of these practices as "Interface Interference," as they visually encouraged consumers to offer higher amounts regardless of the accompanying text.

The CCPA also noted that the fare shown during booking already accounted for various factors such as distance, time, traffic, tolls, and the amount payable to the captain. The authority rejected Rapido's argument that tipping was voluntary and that the matching algorithm continued to work regardless of additional payments. The company's claims were found to be unsubstantiated and misleading.

The CCPA's investigation into Rapido is part of a broader examination of advance-tip and dark-pattern practices among ride-hailing and bike-taxi platforms across India. The authority has sent notices to Uber, Ola, Rapido, and Namma Yatri, requesting compliance with the Guidelines for Prevention and Regulation of Dark Patterns, 2023 and submission of self-declarations on compliance.