CCPA fines Rapido over misleading 'advanced tipping' prompts

India's Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh (approximately $12,000 USD) on ride-hailing service Rapido for misleading advertisements, unfair trade practices, and employing 'dark patterns'. The regulator found that Rapido's app prompted users to pay extra before confirming rides to improve their chances of securing a vehicle.

The CCPA's investigation revealed that Rapido's app displayed prompts suggesting additional payments of ₹10, ₹20, or ₹30 to expedite ride confirmation. The authority deemed this a form of 'confirm shaming,' a dark pattern designed to create urgency and fear of losing the ride if the user does not agree to pay more.

Furthermore, the CCPA examined Rapido's 'set your price' slider, finding its color-coding manipulated user decisions. Raising the price displayed a green message indicating a higher likelihood of getting a ride, while lowering it triggered red or orange warnings. This interface design was classified as 'interface interference,' another dark pattern.

The CCPA clarified that a tip is a voluntary payment made after service completion and cannot be presented as a condition for receiving the service. Rapido had argued that tipping was voluntary and mirrored offline negotiations. However, the CCPA rejected this, stating the prompts exerted undue pressure on users when they were most dependent on the platform.

This action against Rapido is part of a broader regulatory crackdown on advance tipping and dark pattern practices by ride-hailing platforms. The CCPA has previously issued notices to other major players like Uber and Ola, and the Ministry of Road Transport and Highways has also directed aggregators to remove pre-ride tipping prompts, emphasizing that tips should only be offered after ride completion.