Consumer watchdog imposes Rs 10 lakh fine on Rapido for misleading ads, dark patterns
CCPA says ride-hailing platform pressured riders to pay more after booking by suggesting higher fares would improve their chances of getting a ride
New Delhi, Sep 15 (PTI) Consumer watchdog CCPA has imposed a Rs 10 lakh penalty on ride-hailing platform Rapido for unfair trade practices and misleading advertisements, the government said on Tuesday.
The Central Consumer Protection Authority (CCPA) mentioned that the action against Rapido is based on a sector-wide examination of cab and bike-taxi aggregator platforms operating in India. The probe is being done to examine practices relating to pre-ride tipping and dynamic pricing.
Already, the authority had issued notices to platforms including Uber, Ola, Rapido and Namma Yatri, directing them to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
Dark Patterns are deceptive user interface designs that mislead or manipulate consumers into making unintended choices.
According to an official statement, the CCPA has imposed a "penalty of Rs 10 lakh on Roppen Transportation Services Pvt Ltd, which operates the ride-hailing platform Rapido, for misleading advertisements, unfair trade practices, unfair contract and dark patterns in the manner in which riders were prompted to pay more before their rides were confirmed".
The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, said that its examination of Uber and Ola in this regard is currently ongoing.
During its examination of various platforms, the authority found that the "Rapido app displayed prompts such as 'Higher the price, higher the chance of getting a ride' and 'Captains aren't accepting at Rs 60. Try adding +10, +20, +30' while a rider’s booking was still being processed".
Elaborating on the findings, the CCPA found issues in Rapido's algorithm.
"The Rapido's algorithm first quoted a fare to the rider and, after the rider booked at that fare, prompted the rider to pay more on the ground that drivers were not accepting the original price," the regulator said.
The CCPA noted that this practice creates a false impression that a rider's chances of getting a cab quickly depend on paying an additional amount. As the rider has already committed to the booking, there is limited scope to negotiate.
"The practice was held to constitute 'Confirm Shaming', a dark pattern identified under the Guidelines for Prevention and Regulation of Dark Patterns, 2023, as it creates a sense of urgency and fear of losing the ride if the consumer does not agree to pay more," the authority said.
While examining Rapido’s 'Set your price' slider, the CCPA found that it was colour-coded to influence the rider’s pricing decision.
At the time of booking the ride, the CCPA noted that the fare displayed to a rider takes into account factors including distance, time, traffic, tolls and the amount payable to the driver.
"In this context, CCPA found no justification for subsequently suggesting that the rider pay an additional amount for the same ride before the ride had commenced," the statement said.
The authority observed that a tip is ordinarily a voluntary payment and therefore, should not be presented as a condition for the service to be provided.
The CCPA said that it rejected the submissions made by Rapido on the matter of tips. PTI