The Government has ordered cab aggregators to stop providing advance tipping options even before booking a ride as the practice is misleading and unfair, according to Consumer Affairs Secretary Nidhi Khare on Wednesday. Speaking to reporters, Khare noted 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 built-in mechanism," the secretary stated. Khare emphasized that "tipping is completely voluntary, and it should be left to the discretion of the consumers after they have taken the ride." The action comes a day after the Central Consumer Protection Authority (CCPA) slapped a ₹10 lakh penalty on ride-hailing platform Rapido for various unfair business practices, including advance tipping for drivers. As per the Ministry of Consumer Affairs, Food and Public Distribution, the action followed a sector-wide review of cab and bike-taxi aggregator platforms concerning practices related to advance tipping and fare-related prompts. According to ET Now, the National Consumer Helpline has received a lot of complaints against taxi ride aggregators, with consumers alleging that advance tipping concepts were introduced even before taking the ride. In some cases, customers reportedly felt that they could have difficulty getting a ride if they did not pay an additional amount, with the government stating that such a system can put undue pressure on consumers.
The Central Consumer Protection Authority (CCPA), headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, has imposed a ₹10 lakh penalty on Roppen Transportation Services Private Limited, the company operating Rapido, for allegedly using misleading advertisements, unfair trade practices, unfair contract and dark patterns in its ride-booking interface. According to CCPA reports, the action follows a comprehensive sector-wide examination of cab and bike-taxi aggregator platforms operating in India to examine practices relating to pre-ride tipping and dynamic pricing. The consumer protection body found that Rapido's algorithm first quoted a fare to riders and, after booking at that fare, prompted riders to pay more on the ground that captains were not accepting the original price. The 34-page order dated August 31 was issued after a representation received on May 16, 2025, alleging manipulative tipping practices and surge pricing. As per the Ministry of Consumer Affairs, Food and Public Distribution, the action followed a sector-wide review of cab and bike-taxi aggregator platforms concerning practices related to advance tipping and fare-related prompts.
During its examination, CCPA found that the Rapido app displayed prompts such as 'Higher the price, higher the chance of getting a ride' and 'Captains aren't accepting at ₹60. Try adding +10, +20, +30' while a rider's booking was still being processed. As reported by CCPA, this practice creates a false impression that a rider's chances of getting a ride quickly depend on paying an additional amount, at the precise stage when the rider has already committed to the booking and has limited scope to negotiate. The authority classified this as 'Confirm Shaming', a dark pattern identified under the Guidelines for Prevention and Regulation of Dark Patterns, 2023, where an interface uses psychological pressure to push customers towards making a particular choice, in this case paying more. The CCPA held that these prompts could make consumers believe that paying more would improve their prospects of securing a ride, despite the platform having already quoted a fare. The fare displayed at the time of booking is calculated after taking into account relevant factors such as distance, travel time, traffic conditions and tolls, besides the amount payable to the driver.
CCPA examined Rapido's 'Set your price' slider and found that it was colour-coded to influence rider pricing decisions. According to the consumer protection body, raising the price displayed 'higher chance of getting a ride' in green, while lowering the price triggered a red or orange warning. The slider provided more room to increase the fare than to decrease it, leading CCPA to classify this as another dark pattern called 'Interface Interference', alleging that the app's design influenced customers to select a higher price, independent of accompanying text. The authority noted that customers were initially shown one fare but were then encouraged to pay more during the booking process. Rapido argued that tipping was voluntary and that its matching algorithm continued functioning irrespective of whether an additional amount was offered, comparing the prompts to real-time negotiations between riders and drivers. However, CCPA rejected these submissions, saying the prompts appeared when consumers had already committed to a booking and were awaiting confirmation.
The CCPA identified significant concerns with Rapido's advance tip feature, which violates consumer protection guidelines. As reported by CCPA, a tip is generally a voluntary payment made after receiving a service, therefore it should not be presented before a ride in a way that suggests paying more could increase the chances of getting a ride. The authority cited the Motor Vehicle Aggregator Guidelines, 2025, which state that the tipping feature should be available after the ride is completed, rather than at the time of booking or during the ride. CCPA further noted that Rapido had not provided data demonstrating that paying more actually increases the likelihood of getting a ride. It therefore held the claim to be unsubstantiated and misleading, questioning the use of the term 'tip' for an additional payment made before a ride. The CCPA emphasised that a tip is generally a voluntary payment made by a consumer after receiving a service and should not be presented in a manner that makes it appear necessary for obtaining that service. The fare shown at booking already considers factors such as distance, time, traffic, tolls and the amount payable to the captain. The CCPA noted that Rapido had already been penalised on August 20, 2025, in relation to misleading advertising concerning its 'Guaranteed Auto in 5 mins or get Rs.50' campaign, treating the continued use and evolution of the disputed prompts as a subsequent contravention.
The CCPA has directed Rapido to immediately discontinue the disputed prompts and any similar interface or design that pressures consumers into paying more. The company must comply with the Consumer Protection Act, 2019, the 2023 dark-pattern guidelines, the 2022 misleading-advertisement guidelines, and the Consumer Protection (E-Commerce) Rules, 2020. Rapido must also maintain official email and contact details and submit a compliance report within 15 days. The action against Rapido forms part of CCPA's wider scrutiny of advance-tip and dark-pattern practices across ride-hailing and bike-taxi platforms. As reported by CCPA, the consumer protection authority had earlier issued notices to platforms including Uber, Ola, Rapido and Namma Yatri, directing them to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023 and submit self-declarations regarding compliance. CCPA's examination of Uber and Ola in this regard is currently ongoing, with the authority encouraging consumers to reach out with relevant grievances through the National Consumer Helpline (NCH) at 1915 or write to CCPA at com-ccpa[at]gov[dot]in. Dark patterns refer to design or interface practices that can manipulate or influence consumers into making choices they may not otherwise have made.
