CCPA fines Rapido ₹10 lakh over 'confirm shaming' ads that pushed riders to pay more

The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on Roppen Transportation Services Pvt Ltd, which operates the ride-hailing platform Rapido, for misleading advertisements, unfair trade practices, unfair contract terms and the use of "dark patterns" that prompted riders to pay more before their rides were confirmed, the government said on Tuesday.

The consumer watchdog said the action followed a sector-wide examination of cab and bike-taxi aggregator platforms operating in India, looking at practices relating to pre-ride tipping and dynamic pricing. Notices had earlier been issued to Uber, Ola, Rapido and Namma Yatri, directing them to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

Dark patterns are deceptive user-interface designs that mislead or manipulate consumers into making choices they did not intend to make. The 2023 guidelines identify several such practices, including confirm shaming and false urgency, and apply to platforms offering goods or services in India.

According to an official statement, the 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.

The authority also flagged the platform's algorithm. It said Rapido first quoted a fare to the rider and, after the rider had booked at that fare, prompted them to pay more on the ground that drivers were not accepting the original price. This, the CCPA said, created a false impression that the chances of getting a ride quickly depended on paying an additional amount — at a point when the rider had already committed to the booking and had limited scope to negotiate.

The practice was held to constitute "confirm shaming", a dark pattern identified under the 2023 guidelines, because it creates a sense of urgency and a fear of losing the ride if the consumer does not agree to pay more.

While examining Rapido's "Set your price" slider, the CCPA found that it was colour-coded in a manner that could influence the rider's pricing decision. It noted that at the time of booking, the fare displayed to a rider already accounts for distance, time, traffic, tolls and the amount payable to the driver. In this context, the authority said it found no justification for subsequently suggesting that the rider pay an additional amount for the same ride before it had commenced.

The CCPA observed that a tip is ordinarily a voluntary payment and should not be presented as a condition for the service to be provided. It said it rejected the submissions made by Rapido on the matter of tips.

The authority, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, said its examination of Uber and Ola on the same issues is ongoing.

Aggregator platforms fall within the scope of the Consumer Protection Act, 2019, under which the CCPA can act against unfair trade practices and misleading advertisements, either on a complaint or on its own. Consumers who believe they have been subjected to such practices can approach the CCPA or file a complaint before a consumer commission.

The order reinforces a basic expectation in consumer law: the fare shown at the time of booking should be the fare for the ride, and any additional payment must be a genuine and clearly optional choice, not a condition attached to getting the service.