GUWAHATI: The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on ANI Technologies, which operates ride-hailing platform Ola, for misleading consumers through a pre-ride tipping feature that suggested paying extra could improve their chances of getting a faster ride.
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The consumer watchdog has also directed Ola to immediately discontinue all prompts, messages, interface designs and pre-set amounts that encourage or pressure consumers to pay anything over the upfront fare displayed at the time of booking.
The action follows a complaint filed in May 2025 against Ola's pre-ride tipping feature, which prompted customers to offer an additional amount to drivers before their rides were confirmed. The app displayed the message, "Adding a tip might help increase the chances of getting a ride faster."
Initially, customers were offered pre-set tipping amounts ranging from ₹10 to ₹40, which were subsequently increased. The CCPA found that the platform allowed additional payments of up to ₹499.
The complaint was heard by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, who examined whether the feature amounted to a manipulative trade practice that pressured consumers into making additional payments to secure a ride.
Defending the feature, Ola maintained that the payments were voluntary and transferred directly to drivers without any deductions by the platform. The company argued that the option helped drivers accept rides that might otherwise be commercially unviable, particularly when they had to travel longer distances to reach passengers.
Ola also maintained that additional payments did not guarantee faster ride confirmation, although it claimed that they increased the chances of getting a ride.
However, the CCPA found that the company's own data did not support this claim. In Delhi, around 38% of ride requests with an additional payment were accepted, compared to 62% of requests without one. In Bengaluru, the acceptance rate stood at 40% for rides with an add-on payment, against 68% for those without it.
The authority observed that Ola could not defend the feature on both grounds. It stated that if the additional payment did not influence ride acceptance, the claim that it improved the chances of securing a faster ride was misleading. However, if it did influence acceptance, consumers unwilling or unable to pay extra were placed at a disadvantage despite being quoted an upfront fare.
The CCPA further noted that the feature could incentivise drivers to decline or delay accepting rides in anticipation of receiving additional payments. This, it said, put consumers who chose not to pay extra at a disadvantage.
Questioning the absence of a limit on such payments, the authority observed that there was no objective basis for the additional amounts being sought from consumers, warning that a customer asked to pay ₹10 extra could later be prompted to pay ₹20, ₹30 or even ₹50.
The CCPA held Ola guilty of misleading advertisement, unfair contract and unfair trade practice. It also found violations of the Guidelines for Prevention and Regulation of Dark Patterns and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements.
Apart from imposing the ₹10 lakh penalty, the authority directed Ola to remove all prompts, messages and interface elements that solicit, nudge, coerce or psychologically pressure consumers into paying additional amounts, whether described as tips, add-ons or extra fares, before completing a journey.
The company has also been directed to strictly comply with the Consumer Protection Act and other applicable consumer protection guidelines.
