After booking a cab, before meeting the driver, have you also seen the option of paying extra money in the name of tip or add-on on Ola app? If yes, then now the company will not be able to ask for such payment. The Central Consumer Protection Authority (CCPA) has considered this arrangement of Ola as unfair trade practice and dark pattern. The authority has imposed a fine of Rs 10 lakh on the company and ordered to immediately stop all prompts asking for additional payment before the completion of the ride.
This action has been taken against ANI Technology Private Limited, which operates the Ola cab platform. According to CCPA, while searching for a driver on the Ola app, users were told that giving a tip could increase the chances of getting a ride sooner. Later the company changed the name of tip to add-on, but the method of asking for payment did not change.
Why is the claim of getting a quick cab on tipping misleading?
CCPA investigated different activities of Ola app. Many types of messages were found in it-
- Giving a tip can increase your chances of getting a quick ride.
- Tip now to increase your chances of getting a quick ride
- Increase your chances of early ride confirmation
These messages appeared while the app was searching for a driver. Just below these, payment options of Rs 10, Rs 20 or other fixed amounts were given. This made users feel that by paying extra money the driver could accept the ride sooner.
The CCPA said that using words like “likely” or “may” in messages does not eliminate their misleading effect.
Those who gave add-ons to their figures of Ola got less rides.
CCPA also examined Ola’s booking data between June 1 and 15, 2026. It found that ride requests sent with add-ons had a lower acceptance rate than requests without add-ons.
This means that despite paying extra, the ride acceptance rate remained low in these three cities. Despite this, users were being indicated on the app that paying extra money could increase the chances of getting a quick cab.
The authority also found contradictions in Ola’s stand. On one hand, the company said that the add-on has no impact on the driver’s decision to give a ride, while on the other hand, additional payment on the app was being linked to the possibility of getting a ride sooner.
The company also did not tell users that its own data showed that the acceptability of add-on requests was low. Apart from this, information on the basis on which the suggested amount was decided was also not given. CCPA considered this a case of hiding information required under consumer protection law.
Why was money already being asked for in the name of tip?
The CCPA said a tip is typically a voluntary sum of money given after a service has been completed. But in the case of Ola, tip was being asked even before the ride was completed. This converted voluntary payment into payment before receiving the service.
The authority also said that the customer has already booked the cab at a fixed fare. This fare includes factors such as peak pricing and distance to the driver’s pickup location. Despite this, asking for extra money for the same ride is like charging another premium.
According to CCPA, the suggested additional amount in May 2025 was between Rs 10 and Rs 40. Later it increased to Rs 140. In the app, users were also given the option to pay up to Rs 499.
Use of confirmed shaming dark patterns
CCPA also examined Ola’s app design as a dark pattern. The authority placed it in the category of confirmed shaming.
This means that through the design or messages of the app, pressure is created on the user to choose an option. In the case of Ola, users were being signaled that if they did not pay additional money, they may get delayed in getting the cab or the ride would not be confirmed.
The authority also raised objection on some other things-
- Users were encouraged to pay more by showing pre-determined payment options.
- Generous Add On! Such messages encouraged additional payment.
- The user did not have the option to close this prompt.
- These messages were shown after a ride was booked, when the driver’s availability was unknown.
CCPA said such requests were also seen in rides booked from hospitals, railway stations, interstate bus terminals and airports. Such messages can have a greater impact on patients, the elderly, people traveling with luggage and those traveling alone at night.
What instructions were given to Ola?
CCPA has directed Ola to immediately stop all messages and options that ask for payment in the form of tips, add-ons, additional fares or any other means before the ride is completed.
The company has also been asked to follow the Consumer Protection Act, 2019, 2023 guidelines related to stopping dark patterns and 2022 guidelines related to misleading advertisements. Along with this, the company will have to pay a fine of Rs 10 lakh.
Rapido also fined Rs 10 lakh, Uber investigation ongoing
CCPA has also initiated suo motu action against other cab aggregator companies regarding similar arrangements. Earlier, the authority had issued notice to Roppen Transportation Services Pvt., which operates Rapido. Ltd. Was also imposed a fine of Rs 10 lakh.
Investigation is going on in this matter against Uber and Namma Yatri. The Consumer Ministry said that if any customer faces any problem related to such arrangement or service, then he can complain on the number 1915 of the National Consumer Helpline.
VIDEO: Now watch this video, when NDTV started the campaign
Source: ndtv.in
