Rapido fined Rs 10 lakh for misleading tipping prompts, dark patterns
The Central Consumer Protection Authority has fined Rapido Rs 10 lakh for using dark patterns and misleading tipping prompts. The regulator ruled that tipping must be voluntary and should not be a condition for ride confirmation.
Why it matters
This sets a significant regulatory precedent for gig-economy platforms regarding transparency and the ethical use of algorithmic pricing.
NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Roppen Transportation Services Pvt Ltd, which operates ride-hailing platform Rapido, for misleading advertisements, unfair trade practices and use of dark patterns that allegedly prompted riders to pay more before their rides were confirmed.The action followed a sector-wide examination of cab and bike-taxi aggregator platforms over practices related to advance tipping and dynamic pricing, a ministry of consumer affairs, food & public distribution press release reads.‘Higher the price, higher the chance of getting a ride’During its examination, the CCPA found that Rapido displayed prompts such as “Higher the price, higher the chance of getting a ride” and “Captains aren't accepting at Rs 60.
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