Rs 10 lakh fine slapped on Ola for ‘tip to ride’ nudge

NewsIndia NewsRs 10 lakh fine slapped on Ola for ‘tip to ride’ nudge NEW DELHI: Central consumer protection authority (CCPA) has imposed a penalty of Rs 10 lakh on ANI Technologies, which operates ride-hailing platform Ola, for misleading consumers into paying an additional fare to improve their chances of getting a faster ride.It has also directed the platform to immediately discontinue display of all prompts, messages, interface designs, pre-set amounts, or any other dark pattern elements that “solicit, nudge, coerce or psychologically pressure consumers into paying any amount, whether described as a tip, add-on, additional fare or by any other name, over and above the upfront fare displayed at the time of booking, prior to the completion of the journey”.The action follows a similar order and Rs 10 lakh penalty in Sep against ride-hailing platform Rapido for a similar violation.

CCPA had also ordered Rapido to discontinue this practice. TOI has learnt that CCPA is also investigating similar complaints against another popular ride-hailing platform.The penalty so far seems to have had little impact as such platforms are continuing the practice.The authority took up a complaint it received in May 2025 alleging that Ola’s app was prompting customers to pay tips in advance out of fear that their bookings could be delayed or drivers might not accept their rides.

The app displayed the message, “adding a tip might help increase the chances of getting a ride faster”, along with pre-set tip amounts.Ola had defended this, saying that it only offered customers an option to voluntarily reward drivers and the entire tip went to them.

The company also argued that ride allocation and driver acceptance were determined by standardised algorithms that did not take tipping behaviour into account. It maintained that customers had equal access to rides irrespective of whether they chose to pay an additional amount.The company had also told the authority that it had modified the user interface, presenting the payment as an optional add-on.

However, the CCPA observed that Ola had not provided technical evidence or backend documentation to substantiate its claim that tipping did not influence ride allocation.Join conversation InsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig Development The regulator said suggesting that an additional payment could improve the chances of securing a quicker ride could create a misleading impression among consumers and undermine the voluntary nature of tipping.

It also said that consumers should not be made to feel that they need to pay over and above the disclosed fare to receive a basic service. Get the latest India News and Live updates. Download the TOI app. 'Kashmir Was, Is And Will Be India's': Farooq Abdullah Urges Pakistan To End Terrorism 'Sam Bhai...Gujarati Friend': PM Modi-Sam Pitroda's X Exchange Goes Viral ‘Clean Chit To Gandhi Family’: 1984 Anti-Sikh Riot Victims' Families Burn Sonia’s Memoir ‘Pay ₹7 Crore Or...’: Kejriwal, Daughter Get ‘Death Threat’ From ‘Lawrence Bishnoi Gang Member’ Owaisi, Chandra Shekhar Azad Form Alliance For 2027 UP Polls; SP, Congress React ‘Double Standards of…’: BJP Hits Out As Congress Names Bimol Akoijam To Key Manipur Poll Panels ‘Ball Is In Your Court’: Norwegian Journalist Helle Lyng’s Visa Appeal To Amit Shah ‘ANTI-BHARAT’: BJP Targets Rahul Gandhi Ahead Of Bharat Summit In Hyderabad 'Chilling Reminder': Mamata Attacks BJP After TMC Leader Ujjal Biswas' Death Diwali 1984: Grenade Plot to Wipe Out The Entire Gandhi Parivar, Revealed In Sonia Gandhi's Memoir The saree that came with a family legacy: Sonia Gandhi's wedding drape came with a Nehru connection Exclusive - From slamming Qazi Touqeer over his insensitive heart attack remark to his wife receiving threats over Love Gill reels: Bigg Boss 20's Aasif Khan gets candid