CCPA Imposes Penalty On Cab Company Asking Consumers Tips For Faster Rides

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ten lakh rupees on a private company operating a ride-hailing platform for soliciting additional payments from consumers before completion of their journeys through its pre-ride ‘tip’ and ‘add-on’ feature. CCPA has directed the platform to immediately discontinue the practice, holding that it misleads consumers, constitutes an unfair trade practice and employs a dark pattern.

The Ministry of Consumer Affairs, Food and Public Distribution said that the order was passed by the CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra. The order was passed following an examination of the feature that prompted consumers to make an additional payment while the app was searching for a driver, suggesting that it could improve their chances of securing a ride faster.

The Ministry said that the practice was found to be contrary to Clause 14.15 of the Motor Vehicles Aggregators Guidelines, 2025, which provides for a tipping feature only after completion of the journey. CCPA noted that the platform continued displaying the prompt even after the Ministry of Road Transport and Highways clarified earlier this year that such prompts could not be displayed before completion of the ride.

The Ministry said that consumers who encounter such practices or face difficulties in accessing services can register their complaints through the National Consumer Helpline at 1 9 1 5 or write to com-ccpa@gov.in mailto:com-ccpa@gov.in.(UPDATED ON 13TH NOVEMBER 2026)