CCPA Fines Rapido Rs 10 Lakh for Dark Patterns; Uber and Ola Under Review

The CCPA has fined Rapido Rs 10 lakh for misleading practices and dark patterns that allegedly encouraged riders to increase fares before booking confirmation.

CCPA Fines Rapido Rs 10 Lakh Over Dark Patterns; Uber and Ola Under Review

The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on ride-hailing platform Rapido over alleged misleading advertisements, unfair trade practices, unfair contract terms and the use of dark patterns.

The regulatory action follows a wider examination of cab and bike-taxi aggregator platforms concerning practices such as pre-ride tipping and dynamic pricing. The CCPA's examination of Uber and Ola on these issues is still underway.

CCPA Finds Problematic Prompts on Rapido App

During its review, the consumer authority examined how Rapido presented additional payment prompts to users while their ride bookings were still being processed.

The app displayed messages suggesting that increasing the offered amount could improve the chances of securing a ride. Examples included prompts indicating that a higher price could increase the likelihood of finding a driver, along with suggestions to add Rs 10, Rs 20 or Rs 30 when drivers were allegedly not accepting the original fare.

According to the CCPA, the platform initially displayed a fare to the rider. After the rider proceeded with the booking, the app could then encourage the user to offer an additional amount because drivers were reportedly not accepting the initial price.

CCPA Flags 'Confirm Shaming' Dark Pattern

The authority concluded that the design and timing of these prompts could create an impression that users needed to pay more to improve their chances of getting a ride.

The CCPA classified this practice as “Confirm Shaming”, one of the dark patterns identified under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

Confirm shaming generally refers to interface techniques that pressure consumers into making a particular choice by creating a sense of hesitation, guilt or disadvantage if they decline an option.

In this case, the authority said the prompts appeared when users were dependent on the platform to secure a ride, potentially putting additional pressure on them to increase the payment.

'Set Your Price' Feature Also Under CCPA Scanner

The CCPA separately examined Rapido's “Set your price” feature, which allows riders to adjust the amount they are willing to pay.

According to the authority, the feature used colours and interface design in a way that could influence consumers towards offering a higher price. Increasing the amount was accompanied by a green indication suggesting a higher chance of securing a ride, while reducing the amount triggered red or orange warnings.

The CCPA also observed that the slider provided comparatively greater space for increasing the price than reducing it.

CCPA Calls It 'Interface Interference'

The authority considered the design of the pricing slider to be another form of dark pattern known as “Interface Interference”.

Interface interference involves designing or presenting elements of a digital interface in a manner that can steer users towards a particular choice.

In Rapido's case, the CCPA found that the visual treatment of the pricing options could encourage riders to increase the amount they were willing to pay rather than make an independent pricing decision.

Authority Questions Additional Payment Requests

The CCPA noted that the fare shown to a rider during the booking process already considers several factors associated with the journey.

These factors can include distance, travel time, traffic conditions, tolls and the amount payable to the driver or captain. Against this background, the authority questioned the justification for asking riders to make an additional payment for the same ride before the journey had started.

The CCPA also emphasised that tipping is generally considered a voluntary payment. It referred to the Motor Vehicle Aggregator Guidelines, 2025, which provide that a tipping facility should be made available only after the completion of a ride.

Rapido Defends Its Pricing and Tipping System

During the proceedings, Rapido argued that its tipping mechanism was voluntary and that the platform's driver-matching system continued to function regardless of whether a rider offered additional money.

The company also maintained that the prompts represented real-time negotiations between riders and drivers and were comparable to an offline discussion over the price of a ride.

However, the CCPA did not accept these arguments.

CCPA Says Rapido Did Not Provide Supporting Data

The consumer authority said the timing and presentation of Rapido's prompts could put pressure on users at a point when they were particularly dependent on the platform for securing transportation.

The CCPA also noted that Rapido had not provided data demonstrating that offering an additional amount actually increased the probability of successfully obtaining a ride.

This absence of supporting evidence was relevant to the authority's assessment of the company's practice.

Uber and Ola Examination Continues

The action against Rapido forms part of a broader examination of ride-hailing and taxi aggregator platforms.

The CCPA is also examining Uber and Ola in relation to practices involving pre-ride tipping and dynamic pricing. However, those examinations remain ongoing, and no conclusion regarding the two companies is stated in the information provided here.

Conclusion

The Rs 10 lakh penalty against Rapido highlights regulatory scrutiny of digital interface designs and pricing practices in India's ride-hailing sector. The CCPA identified two practices as dark patterns: “Confirm Shaming” and “Interface Interference”.

The authority's wider examination of Uber and Ola indicates that practices involving tipping, pricing and consumer choice on ride-hailing platforms remain under regulatory review.