₹10 lakh penalty on Ola for pre-ride ‘tip’ feature

CCPA finds advance payment prompts misleading; holds it to be an unfair trade practice

GN Bureau | November 13, 2026


#Consumer Rights   #Ola  


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 soliciting additional payments from consumers before completion of their journeys through its pre-ride ‘tip’/‘add-on’ feature.

The Authority has directed Ola to immediately discontinue the practice, holding that it misleads consumers, constitutes an unfair trade practice and employs a dark pattern, an official release said on Friday.
 
The order was passed by the CCPA, headed by chief commissioner Nidhi Khare and commissioner Anupam Mishra, following an examination of the feature that prompted consumers to make an additional payment while the app was searching for a driver, suggesting that it could improve their chances of securing a ride faster. Although Ola subsequently renamed the ‘tip’ as an ‘add-on’, the underlying practice remained unchanged.
 
Additional payment prompts created a misleading impression of faster ride confirmation
The CCPA examined the different versions of the Ola app interface and found that messages such as “Adding a tip might help increase the chances of getting a ride faster”, “Tip now to boost the chances of getting a ride sooner” and “Improve your chances of quicker ride confirmation!” suggested that paying extra would help consumers secure a ride faster.
 
The Authority observed that these messages appeared while the app was searching for a driver and directly above pre-set payment amounts. This created the impression that an additional payment could speed up the booking process. The use of qualifying words such as ‘might’ and ‘chance’ did not alter the overall impression conveyed to consumers.
 
Ola's own booking data for 1–15 June 2026 did not support this claim. Ride requests carrying an add-on were accepted less frequently than those without one.
 
The Authority also noted that Ola's position was contradictory. While the company stated that the add-on did not influence ride allocation, its app suggested that paying extra could improve the chances of getting a ride sooner.
 
Further, consumers were not informed that the platform's own data showed lower acceptance rates for requests carrying an add-on or the basis on which the suggested payment amounts were generated. The CCPA held that these omissions amounted to concealment of material information under Section 2(28)(iv) of the Consumer Protection Act, 2019.
 
CCPA holds advance tipping to be an unfair trade practice
The Authority observed that a tip is ordinarily a voluntary payment made after a service has been provided. Soliciting it before the journey effectively converts a voluntary gratuity into a pre-service payment. Merely renaming the feature from ‘tip’ to ‘add-on’ did not change the nature of the practice.
 
The CCPA further noted that:
 
* The additional payment was solicited after consumers had already booked a ride at an upfront fare, which accounts for peak pricing and the driver's distance to the pick-up point. Seeking another payment on account of the same supply constraints amounted to charging an additional premium.

* The suggested amounts were generated by the platform on an undisclosed basis. These amounts increased from ₹10–₹40 in May 2025 to as much as ₹140, while the interface permitted payments of up to ₹499.

* Consumers could not independently verify the need for an additional payment, as information regarding driver availability was controlled by the platform.

* Making an additional payment appear necessary for timely acceptance of a ride that had already been booked also raised concerns of an unfair contract.

The practice was also found to be contrary to Clause 14.15 of the Motor Vehicles Aggregators Guidelines, 2025, which provides for a tipping feature only after completion of the journey. The Authority noted that Ola continued displaying the prompt even after the Ministry of Road Transport and Highways clarified on 11 August 2026 that such prompts could not be displayed before completion of the ride.
 
Under Section 2(47) of the Consumer Protection Act, 2019, an unfair trade practice includes the use of unfair or deceptive methods and false or misleading representations regarding the benefits or usefulness of a service. The CCPA held that Ola's additional payment prompts fell within this provision.
 
Interface design used ‘Confirm Shaming’ to encourage additional payments
The CCPA also examined the feature under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.The prompts appeared when consumers were waiting for a driver to accept their booking. By suggesting that an additional payment would improve their chances of securing a ride, the interface implied that consumers who did not pay could face delays or might not get a ride. The Authority held that this created a sense of fear and amounted to ‘Confirm Shaming’, as specified under Clause 3 of Annexure 1 to the Guidelines.
 
The Authority further observed that:
 
* Pre-set payment amounts displayed below the prompt anchored consumers to higher figures.

* The message “Generous Add On!” further encouraged consumers to make an additional payment.
 
* The interface did not provide an option to close the prompt.
 
* The prompt appeared after the ride had already been booked, when consumers were waiting for confirmation and had limited information about driver availability or the likely impact of making an additional payment.
 
The Authority also noted that Ola's booking data reflected such requests from hospitals, railway stations, inter-state bus terminals and airports. Consumers such as patients, elderly persons, travellers carrying luggage and individuals travelling alone or at night could be particularly vulnerable to such prompts.
 
Ola directed to discontinue all pre-ride payment prompts and pay ₹10 lakh penalty
The CCPA has directed Ola to:
 
* Immediately discontinue all prompts, messages, pre-set amounts and interface designs that solicit any payment, whether described as a tip, add-on, additional fare or by any other name, over and above the upfront fare before completion of the journey.
 
* Ensure strict compliance with the Consumer Protection Act, 2019; the Guidelines for Prevention and Regulation of Dark Patterns, 2023; and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
 
* Pay a penalty of ₹10 lakh.The CCPA has also taken suo motu action against other cab aggregator platforms concerning the same practice. It has earlier passed an order against Rapido (Roppen Transportation Services Pvt. Ltd.), imposing a penalty of ₹10 lakh. Proceedings against Uber and Namma Yatri are currently under investigation.
 
Consumers who encounter such practices or face difficulties in accessing services can register their complaints through the National Consumer Helpline at 1915 or write to com-ccpa[at]gov[dot]in.

Comments

 

Other News

Retail inflation crosses 6% mark

Retail inflation based on Consumer Price Index for October has reached 6.09%, whereas year-on-year food inflation, based on Consumer Food Price Index, for October is 8.94%, an official release said on Thursday.   Year-on-year inflation rate based on All India Consumer Price I

Cabinet approves museum at North-South Block complex

The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, on Wednesday has approved the development of the Yuge Yugeen Bharat Museum (YYBM) at the North and South Block Complex, New Delhi, at an estimated total project cost of ₹3,230 crore, as appraised by the Public Investmen

Cabinet approves extension of Noida metro corridor

The Union Cabinet, chaired by prime minister Narendra Modi, has approved the extension of Aqua Line Metro Rail Corridor from Noida Sector-51 to Greater Noida Sector-04 of Noida Metro Rail Project with corridor for a length of 8.449 km with 5 elevated stations. On operationalization of this corridor, Noid

India reaffirms commitment to climate multilateralism

India has reaffirmed its commitment to climate multilateralism and the principles of Equity and Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), calling for a fair, equitable and ambitious outcome at the 31st Conference of the Parties (COP31) to the United Nations Framewo

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter