NEW DELHI: The Central Consumer Protection Authority (CCPA) has issued a notice to taxi aggregator Uber for allegedly pressuring users to pay a tip in advance to receive faster service.
In recent months, the app-based taxi platform has been encouraging users to tip ahead of time in return for quicker service.
Union Minister of Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, Prahlad Joshi, said such practices amount to “unfair trade” and must be stopped.
Taking to X, Joshi wrote: “The practice of 'advance tipping' is deeply concerning.” He stressed that tipping should remain optional and determined by the consumer based on their service experience.
“Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. Such actions fall under unfair trade practices. A tip is a token of appreciation, not an obligation, and should be given after the service is rendered,” he wrote.
Joshi said he had directed the CCPA to investigate. “Today, CCPA issued a notice to Uber regarding this issue, seeking an explanation from the platform. Fairness, transparency and accountability must be upheld in all customer interactions,” he added.
Another ride-service aggregator, Rapido, has also reportedly been requiring users to tip in advance for faster service, although the government has not commented on the matter.
Sachin Taparia, founder of LocalCircles, a digital community platform that highlights consumer concerns, said such practices are part of a phenomenon known as “dark patterns.”
“Consumers are becoming aware of various dark patterns, as reported in an online survey conducted by LocalCircles,” Taparia said.
A dark pattern refers to a deceptive user interface design that manipulates users into taking actions they might not have otherwise chosen, undermining consumer autonomy and choice. Examples include making it difficult to cancel transactions, infinite scrolling, auto-playing videos and frequent notifications.