The CCPA has fined Ola Rs 10 lakh for misleading pre-ride payment prompts, declaring its tip feature an unfair trade practice and dark pattern.
The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on ANI Technologies Private Limited, the company operating ride-hailing platform Ola, for encouraging customers to make additional payments before completing their journeys.
The authority has also instructed Ola to immediately stop displaying its pre-ride 'tip' or 'add-on' payment feature, stating that the practice misled customers and amounted to an unfair trade practice involving a prohibited dark pattern.
The decision was taken after examining Ola's mobile application interface, which encouraged users to pay extra money while the platform was searching for an available driver.
The CCPA is headed by Chief Commissioner Nidhi Khare, along with Commissioner Anupam Mishra.
During its investigation, the CCPA examined different versions of Ola's application and identified messages encouraging customers to make additional payments to improve their chances of getting a ride quickly.
Some of the messages included:
"Adding a tip might help increase the chances of getting a ride faster."
"Tip now to boost the chances of getting a ride sooner."
"Improve your chances of quicker ride confirmation!"
These notifications appeared during the driver-search process, alongside predetermined payment options.
According to the authority, the messages created an impression that customers who paid extra had a better chance of securing a driver quickly. Changing the feature's name from 'tip' to 'add-on' did not change the underlying practice.
The CCPA also examined Ola's booking records for June 1-15, 2026. The findings showed that requests involving additional payments actually recorded lower acceptance rates than requests without add-ons.
The data revealed the following differences:
| City | With add-on | Without add-on |
|---|---|---|
| Delhi | 38% | 62% |
| Bengaluru | 40% | 68% |
| Mumbai | 39% | 68% |
These figures contradicted the impression created by the app that paying extra could improve ride-confirmation chances.
The authority also noted that Ola did not clearly explain how suggested payment amounts were calculated or inform customers about the lower acceptance rates associated with add-on requests.
It concluded that withholding important information amounted to concealment under Section 2(28)(iv) of the Consumer Protection Act, 2019.
The authority highlighted that tipping is traditionally a voluntary payment offered after receiving a service. Asking customers to pay a tip before their journey changes its nature from a voluntary gratuity into an advance payment.
The CCPA also questioned why customers were being asked for extra money after booking a ride at an upfront fare that already considered factors such as peak-hour pricing and the driver's distance from the pickup location.
Furthermore, suggested payments reportedly increased from Rs 10-Rs 40 in May 2025 to amounts as high as Rs 140, while the application allowed additional payments of up to Rs 499.
The authority observed that customers could not independently assess whether an extra payment was necessary because information about driver availability remained under the platform's control.
The CCPA found that Ola's practice violated Clause 14.15 of the Motor Vehicles Aggregators Guidelines, 2025. The provision allows tipping functionality only after a journey has been completed.
The authority also noted that Ola continued displaying these payment prompts even after the Ministry of Road Transport and Highways clarified on August 11, 2026, that such requests should not appear before ride completion.
Under Section 2(47) of the Consumer Protection Act, 2019, deceptive practices and misleading representations about services can constitute unfair trade practices.
Apart from misleading payment claims, the CCPA examined Ola's application under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
The authority classified the practice as 'Confirm Shaming', a design technique that uses psychological pressure to influence consumer decisions.
According to the CCPA, customers were encouraged to pay additional amounts by creating the impression that refusing to do so could reduce their chances of getting a ride quickly.
The platform also displayed predetermined payment amounts and used encouraging messages such as "Generous Add On!" to influence spending decisions.
The absence of a clear option to close the payment prompt further raised concerns about the application's design.
The authority highlighted that such prompts could particularly affect people who urgently require transportation.
These include patients visiting hospitals, senior citizens, passengers travelling with luggage and individuals seeking rides late at night or travelling alone.
The CCPA noted that customers waiting at hospitals, railway stations, airports and inter-state bus terminals could be especially vulnerable because they might have limited transportation alternatives.
Along with the Rs 10 lakh penalty, the CCPA has directed Ola to immediately discontinue all pre-ride payment prompts and related interface designs.
The order covers additional payment requests displayed before journey completion, regardless of whether they are labelled as tips, add-ons or extra fares.
Ola must also comply with the Consumer Protection Act, 2019, the Dark Patterns Guidelines, 2023, and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
The authority has expanded its action against similar practices in the cab aggregation industry. It had previously imposed a Rs 10 lakh penalty on Roppen Transportation Services Pvt. Ltd., the operator of Rapido.
Meanwhile, proceedings against Uber and Namma Yatri are currently under investigation.
Consumers experiencing misleading practices or difficulties with services can register complaints through the National Consumer Helpline by calling 1915 or emailing com-ccpa@gov.in.
Conclusion
The CCPA's action against Ola highlights increasing regulatory scrutiny of misleading digital payment practices and dark patterns. By imposing a Rs 10 lakh penalty and ordering the removal of pre-ride payment prompts, the authority has reinforced the importance of transparent pricing and voluntary tipping. The investigation involving other cab aggregators also indicates that consumer protection rules will remain a major focus for India's ride-hailing industry.