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The Economic Times
The Economic Times

Rapido faces Rs 10 lakh penalty over ‘pay more, get a ride’ prompts, dark patterns in app

The Central Consumer Protection Authority (CCPA) fined Rapido operator Roppen Transportation Services Rs 10 lakh on Tuesday for using misleading prompts and interface design that allegedly prompted riders to pay more to secure a ride.

The consumer watchdog said Rapido’s ride-booking interface employed two dark patterns, “Confirm Shaming” and “Interface Interference”, while also finding the platform guilty of misleading advertisements, unfair trade practices and unfair contract terms.

The action follows a sector-wide examination by the CCPA into advance tipping and dynamic pricing practices used by cab and bike-taxi aggregators.

Also read: India’s ride-hailing industry weighs zero commission as drivers eye Rs 1.36 lakh more

During its scrutiny, the authority found that Rapido displayed messages including “Higher the price, higher the chance of getting a ride” and “Captains aren't accepting at ₹60. Try adding +10, +20, +30” while a booking was still being processed.

The app first quotes a fare and, after the rider booked at that price, prompts the rider to increase the amount on the grounds that drivers were not accepting the original fare. The regulator said this could create the impression that paying more was necessary to improve the chances of getting a ride quickly, placing pressure on consumers at a point when they had already committed to the booking.

The CCPA classified the practice as “Confirm Shaming”, saying it created a sense of urgency and fear of losing the ride if the consumer declined to pay more.

The authority also rejected the framing of the additional payment as a tip when it was being sought before the ride had begun.

It noted that the fare quoted at booking already factors in elements such as distance, time, traffic, tolls and the amount payable to the driver. In this context, the CCPA said there was no justification for subsequently suggesting an additional payment for the same ride before the service had commenced.

It also pointed to the Motor Vehicle Aggregator Guidelines, 2025, which require tipping features to be made available only after completion of a ride.

Rapido had argued that tipping was voluntary and that its matching algorithm continued to operate regardless of whether a rider paid more. It also said the prompts represented real-time negotiation between riders and drivers, similar to an offline interaction.

The CCPA rejected the submissions, saying the timing and design of the prompts put pressure on riders when they were most dependent on the platform. The regulator also noted that Rapido had not provided data demonstrating that paying more actually increased a rider’s likelihood of getting a ride.

The claim was therefore found to be unsubstantiated and misleading.

Also read: UPI to introduce fees on transactions above Rs 2,000 from October 15

Rapido ride price slider under scanner

The regulator also flagged Rapido’s “Set your price” feature, saying the design of its pricing slider itself nudged consumers towards higher fares.

When riders increased their offered price, the app displayed “higher chance of getting a ride” in green. Lowering the price, meanwhile, triggered a red or orange warning. The CCPA also flagged that the slider provided more room to increase the price than decrease it.

The authority classified this as “Interface Interference”, a dark pattern in which the design of an interface is used to influence a consumer’s decision.

Uber, Ola also under CCPA scrutiny

The Rapido order comes amid wider regulatory scrutiny of ride-hailing platforms over advance tipping and dark patterns. The CCPA has previously issued notices to Uber, Ola, Rapido and Namma Yatri, directing them to comply with its 2023 dark-pattern guidelines and submit self-declarations on compliance.

The examination of Uber and Ola on the issue is currently ongoing.

The CCPA said consumers can report complaints relating to misleading advertisements, unfair trade practices and dark patterns through the National Consumer Helpline at 1915.

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