Uber gets CCPA notice for dark pattern; Rapido, Ola also under watch

CCPA issues notice to Uber for its advance tip feature as government widens probe into dark patterns in ride-hailing apps including Rapido and Ola

 

Uber’s ‘advance tip’ feature -- which has caught the attention of India's consumer watchdog -- is not a one-off, but highlights a broader trend of digital platforms deploying manipulative design tactics, commonly known as dark patterns, to trick consumers into shelling more money.

 

The ride hailing platform was on Wednesday issued a notice by the Central Consumer Protection Authority (CCPA) over its ‘advance tip’ feature.

 

Uber didn’t confirm the receipt of the notice till the press time.

 

But Uber isn’t alone. Other ride-hailing platforms like Rapido and Namma Yatri also allegedly use similar tactics.

 

On Thursday, Consumer Affairs Minister Pralhad Joshi wrote on X that the government is also investigating other apps like Ola and Rapido.

 

“They will also be served notice if they are found indulging in such practices,” he added.

 

As defined by India’s official government guidelines, dark patterns mean practices or deceptive design patterns that mislead or trick users, essentially subverting or impairing their autonomy.

 

In the case of Uber, the ‘advance tip’ feature nudges users to pay an additional amount before the journey for faster ride confirmations and pickups.

 

However, a source said that the platform started this feature a month ago after other rival platforms in the cab-hailing industry started this practice.

 

  

“The advanced tip feature is an attractive one for drivers and has almost become an industry norm. It varies based on the vehicle chosen and distance,” the source said.

 

Responding to Business Standard queries on a feature similar to ‘advance tip’, cab-hailing platform Rapido said the company has not received any notice or communication from the CCPA. It added that the platform operates via two models, zero-commission SaaS (for autos and cabs), and commission-based (for bikes).

 

“For autos and cabs, fares are agreed directly between the passenger and the driver on the app by a price selection ticker on the app, there’s no advance tip or added charge from our side. For bike rides, passengers have the option to add an extra fare, which may be interpreted as a surge price. This additional fare is entirely optional and is applied only if the customer explicitly agrees to it,” the platform said.

 

Referring to the feature as a convenience option, the platform said, “Rapido does not charge any tip to customers before the ride begins. This feature is designed solely as a convenience option for passengers, and customers are free to decline it while still being able to secure a ride if the captain accepts the request.”

 

Another cab aggregator, inDrive, recommends a price for the journey while booking on the platform. However, in case the driver doesn’t accept the ‘offer’, the customers are nudged to raise the fare to find a driver faster. 

 

Pratip Mazumder, country manager and director for India business, said, “We operate on an open marketplace model, which is basically an interaction of demand and supply. We mention a recommended price, a balanced fare based on the current demand-supply scenario, that a driver and a passenger can opt for but we don’t stop anybody from going above or going below that price, the negotiation is part of the platform and is not unique to India.”

 

Mazumder added that, so far, the platform has not faced any issues with any government.

 

“In fact, governments proactively engage with us to understand how our model is doing so well and how this gives back a lot of choices to both passengers and driver partners. So, we see positives, we have not seen any challenge per se,” he said.

 

Business Standard tried to reach Namma Yatri and Ola, however, it didn’t elicit any response.

 

In December 2024, community platform LocalCircles shared a survey about consumers’ experiences of various dark patterns. It noted that eight in ten app taxi users reported dark patterns like bait and switch and forced action, while four in ten confirmed experiencing drip pricing.

 

The government has been cracking down on the practice since it notified guidelines for the prevention and regulation of dark patterns in 2023.

 

The Department of Consumer Affairs has identified 13 of the most commonly used dark patterns on e-commerce websites and mobile apps such as false urgency, basket sneaking, forced action, subscription trap, and nagging.

 

Terming them “unfair trade practices that violate consumer rights,” the government has been working towards creating a transparent and fair digital marketplace where consumers can make informed decisions without being tricked or coerced.

 

In December last year, the department launched three apps, Jago Grahak Jago, Jagriti, and Jagriti Dashboard to help enhance the CCPA’s capability in taking suo motu action dark patterns.

 

Earlier this month, the CCPA served a notice to a popular online ticket booking platform for mandatorily charging customers ₹1 for a non-governmental organisation (NGO) donation on booking tickets on its app, while also not disclosing the specifics of where the amount was going or how it was being used. After receiving the notice, the platform tweaked its interface, allowing customers to choose whether they wish to donate or not, an official told Business Standard.