The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on ride-hailing platform Rapido for unfair trade practices, misleading advertisements, unfair contract terms and the use of "dark patterns to prompt riders to pay more before their rides were confirmed," reported news agency PTI citing an official statement.
The action against Roppen Transportation Services Pvt Ltd, which operates Rapido, follows a sector-wide examination of cab and bike-taxi aggregator platforms in India. The examination is focused on practices related to pre-ride tipping and dynamic pricing.
According to the report, the CCPA has also issued notices to Uber, Ola, Rapido and Namma Yatri, directing them to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023. Dark patterns refer to deceptive user-interface designs that manipulate or mislead consumers into making choices they may not otherwise have made.
During its examination of various platforms, the authority found that, "Rapido app displayed 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 regulator said its examination found that Rapido's algorithm first quoted a fare to the rider, after which the rider could book the ride at that price. The app would then prompt the rider to pay an additional amount on the grounds that drivers were not accepting the original fare.
The CCPA said the practice created a false impression that a rider's chances of getting a cab quickly depended on paying more. Since the rider had already committed to the booking, the scope for negotiating the fare was limited.
The authority classified the practice as "Confirm Shaming", a dark pattern identified under the 2023 guidelines, saying it created a sense of urgency and fear of losing the ride if the consumer did not agree to pay more.
The CCPA also examined Rapido's "Set your price" slider and found that it was colour-coded in a manner that could influence riders' pricing decisions.
The authority noted that the fare displayed at the time of booking already takes into account factors including distance, travel time, traffic, tolls and the amount payable to the driver. It found no justification for subsequently suggesting that riders pay an additional amount for the same ride before the journey had begun.
The CCPA further observed that a tip is ordinarily a voluntary payment and should not be presented as a condition for providing a service. It said Rapido's submissions on the issue of tips were rejected.
The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, said that its examination of Uber and Ola in this regard is currently ongoing.
(With inputs from PTI)