CCPA Penalises Rapido Over ‘Advanced Tipping’ Prompts

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on ride-sharing company Rapido for violating consumer protection laws, including misleading advertisements, unfair trade practices, unfair contract terms, and dark patterns. The regulator found that Rapido's app displayed prompts suggesting specific top-ups of ₹10, ₹20, or ₹30 to increase the likelihood of securing a ride, which the CCPA deemed to be "confirm shaming."

This practice, listed under the 2023 Guidelines for Prevention and Regulation of Dark Patterns, creates urgency and pressure on users to pay extra fees, even though the regulator found no evidence that paying more actually improves a rider's chances of getting a ride. Additionally, the regulator criticized Rapido's "set your price" slider, noting that its color coding influenced pricing decisions, constituting a second dark pattern called "interface interference."

The regulator also pointed out that tipping on the platform should be voluntary and offered only after a ride is completed, not at the time of booking or during the ride. Rapido argued that its tipping feature was voluntary and mirrored real-life negotiations, but the CCPA rejected this claim, stating that the timing and design of the prompts put users under pressure.

The CCPA's action against Rapido is part of a broader investigation into advance-tip and dark-pattern practices across ride-hailing and bike-taxi platforms, with earlier notices issued to Uber and Ola, and ongoing examinations of these platforms.

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