Consumer watchdog slaps ₹10 lakh fine on Rapido for misleading ads, unfair practices

The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh fine on ride-hailing platform Rapido for engaging in unfair trade practices and misleading advertisements. The probe was conducted as part of a sector-wide examination of cab and bike-taxi aggregator platforms operating in India, focusing on pre-ride tipping and dynamic pricing practices.

Rapido, owned by Roppen Transportation Services Pvt Ltd, was found to have used deceptive user interface designs, known as dark patterns, that manipulated consumers into paying more than they initially agreed to. These practices included 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 CCPA found that Rapido's algorithm displayed a fare to the rider, after which the platform prompted the rider to pay more, creating a false impression that the rider's chances of getting a cab quickly depended on paying an additional amount. This practice, known as "Confirm Shaming," was deemed to constitute a dark pattern, as it created a sense of urgency and fear of losing the ride if the consumer did not agree to pay more.