CCPA fines Ola ₹10 lakh for pre-ride tips, calls feature an unfair trade practice

The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on Ola operator ANI Technologies Pvt Ltd for soliciting additional payments from passengers before completion of their rides, calling the practice an “unfair trade practice and a dark pattern”.

The ₹10 lakh penalty follows the CCPA’s finding that Ola’s pre-ride tip and add-on feature amounted to an unfair trade practice and a dark pattern.The authority has also directed the company to immediately discontinue its pre-ride ‘tip’ or ‘add-on’ feature, which suggested that paying extra could improve passengers’ chances of securing a ride faster.

The order was passed by the CCPA, headed by chief commissioner Nidhi Khare and commissioner Anupam Mishra, after examining different versions of the Ola app interface. The company had renamed the feature from ‘tip’ to ‘add-on’, but the authority found that its underlying purpose and functioning remained unchanged.

Messages such as “Adding a tip might help increase the chances of getting a ride faster” and “Tip now to boost the chances of getting a ride sooner” appeared while the app was searching for a driver, creating the impression that additional payment could speed up ride confirmation.

However, Ola’s own booking data for June 1-15, 2026, contradicted this suggestion. Requests carrying an add-on were accepted less frequently than those without one. In Delhi, the acceptance rate was 38% for requests with an add-on against 62% without it.

The corresponding figures were 40% and 68% in Bengaluru, and 39% and 68% in Mumbai. The CCPA observed that Ola’s claim that additional payments did not influence ride allocation was inconsistent with messages suggesting otherwise.

It also held that the company failed to disclose material information about driver acceptance rates and the basis for determining suggested payment amounts. The authority said soliciting a tip before providing a service effectively converted a voluntary gratuity into a pre-service payment.

It also noted that the practice violated Clause 14.15 of the Motor Vehicles Aggregators Guidelines, 2025, which permits tipping only after completion of a journey. After examining the app under the Dark Patterns Guidelines, 2023, the CCPA held that the prompts amounted to ‘confirm shaming’.

By suggesting that passengers could improve their chances of getting a ride through additional payments, the interface created apprehension among those who chose not to pay. The authority also flagged pre-set payment amounts, the absence of an option to close the prompt and messages such as “Generous Add On!” as design elements encouraging passengers to pay extra.

It said passengers booking rides from hospitals, railway stations, bus terminals and airports could be particularly vulnerable, including elderly people, patients, solo travellers and those travelling at night. The CCPA has directed Ola to stop all pre-journey payment prompts, irrespective of whether they are described as tips, add-ons or additional fares, and ensure compliance with consumer protection and advertising regulations.

The authority has also initiated action against other cab aggregators over similar practices. It has already imposed a ₹10 lakh penalty on Rapido, while proceedings against Uber and Namma Yatri are under investigation. Ola’s representative could not be reached for comment despite an email seeking the company’s response.

Sanjeev K Jha is a senior journalist with nearly three decades of experience covering a wide range of beats, including bureaucracy, politics, and security issues such as ISI-linked activities in border regions. His reporting also extends to culture, with work on music and Bollywood.

Currently part of the Political Bureau at Hindustan Times, he focuses on smaller allies within both the NDA and the INDIA bloc. His work offers insight into coalition politics and the evolving dynamics of India’s political landscape, backed by years of on-ground reporting and a deep understanding of governance and power structures.Read More