Ride-hailing company Ola has been fined ₹10 lakh by the Central Consumer Protection Authority (CCPA) for allegedly seeking additional payments from customers in a misleading manner. The authority has also directed the company to immediately discontinue the feature that prompts passengers to pay a tip or extra amount before a ride begins.
According to the CCPA, Ola displayed messages suggesting that offering an additional tip could improve the chances of getting a cab sooner. The option appeared while the app was searching for a driver. Initially, customers were offered additional payment options ranging from ₹10 to ₹40, which later increased to as much as ₹140. The app also allowed users to make additional payments of up to ₹499.
Renaming the Feature Did Not Change the Practice
The authority found that Ola had initially introduced the facility under the name 'Tip'. Following regulatory objections, the company renamed it 'Add-on', but continued the practice of requesting additional payments.
The CCPA classified the practice as misleading and unfair trade conduct, identifying it as a prohibited dark pattern. The investigation also found that ride requests involving additional payments had a lower acceptance rate among drivers than requests without such payments. Despite this, the app suggested that paying extra could help customers secure a cab faster.
Tips Allowed Only After Completion of Rides
Under the Motor Vehicle Aggregator Guidelines, 2025, passengers should be allowed to tip drivers only after completing their journeys. The CCPA has directed Ola to remove all messages, payment options and app interfaces that seek amounts beyond the prescribed fare before a ride.
The authority has also imposed a ₹10 lakh penalty on Rapido in a similar case. Investigations against Uber and Namma Yatri are currently underway.
The action is aimed at protecting consumers from misleading payment prompts and ensuring greater transparency in app-based cab services.
Hashtags: #ScienceTechnology #Bhopal #Ola #Fined #Lakh #Ordered #Disable #Pre #Ride #OlaFined10Lakh
