The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on ANI Technologies Private Limited, which operates the ride-hailing platform Ola, for allegedly misleading consumers through its advance tipping feature, which suggested that paying an additional amount could improve their chances of securing a ride.
The consumer protection regulator has directed the company to discontinue the practice, observing that the feature created an impression that consumers could obtain quicker or more assured ride allocation by making additional payments, despite there being no demonstrated evidence that such payments enhanced their chances of getting a ride.
The proceedings originated from a consumer complaint received in May 2025. The CCPA examined the app interface, which displayed messages encouraging users to make additional payments while they were waiting for a driver to accept their booking. Initially, customers were offered preset add-on amounts between ₹10 and ₹40, with the option of making payments of up to ₹499.
Ola had defended the feature on the ground that the payment was entirely voluntary and was transferred directly to drivers without any deduction by the company. It argued that the additional amount could incentivise drivers to accept trips that might otherwise be commercially unattractive, particularly where they had to travel considerable distances to reach passengers.
However, the CCPA found that the company’s own data undermined this justification. In Delhi, only around 32 per cent of ride requests carrying an additional payment were accepted, compared with 68 per cent of requests without such an add-on. In Bengaluru, the corresponding acceptance rates stood at 39 per cent and 68 per cent, respectively.
The Authority observed that the feature was misleading irrespective of whether the additional payment influenced a driver’s decision. If the payment had no bearing on ride acceptance, the representation that it improved the prospects of securing a faster ride was unfounded. Conversely, if it did influence acceptance, passengers unwilling to pay extra were placed at a disadvantage despite having already agreed to the fare quoted by the platform.
Rejecting Ola’s contention that the payment constituted a voluntary tip, the CCPA observed that a tip ordinarily signifies appreciation for a service already rendered, whereas the platform was soliciting additional money even before a driver had accepted the booking. It further held that the interface employed the prohibited dark pattern of confirm shaming, by psychologically pressuring consumers into making payments at a stage when they were uncertain whether their ride would be confirmed.
The Authority also declined to accept Ola’s argument that the feature affected only a limited number of consumers, observing that the scale of its use could not be dismissed as insignificant merely because it did not influence every customer.
Accordingly, the CCPA directed ANI Technologies to immediately discontinue all prompts, messages, preset payment options and interface designs that solicit or psychologically pressure consumers into paying anything over and above the upfront fare before completion of the journey. The company has also been directed to ensure compliance with the Consumer Protection Act, 2019, and the applicable dark pattern and misleading advertisement guidelines.
The company must deposit the ₹10 lakh penalty and submit a compliance report within 15 days of receiving the order.
The order was passed by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra.
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