The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on ANI Technologies, the parent company of Ola, for implementing a pre-ride tipping feature that suggested passengers could secure faster cab confirmations by paying extra. The regulator ruled that the practice constituted an unfair trade practice and misleading advertising, ordering the company to discontinue the feature and any similar interface designs immediately.
Introduced by the ride-hailing firm on April 27, 2025, the feature prompted users to pay additional amounts—initially between Rs 10 and Rs 40, later increasing to Rs 50 and Rs 140—with messages stating that tips or “add-ons” could improve the chances of a quicker booking. The CCPA intervened following a complaint lodged on May 16, 2025, which alleged that the interface pressured passengers into paying extra due to the fear of service delays or cancellations.
In its defense, the company argued that the feature was a voluntary “opt-in” tool intended to reward drivers for challenging trips or longer distances to reach passengers. It maintained that the language used was probabilistic rather than a guarantee. However, a CCPA investigation involving 15 days of booking data from Delhi, Bengaluru, and Mumbai found that rides with add-ons consistently recorded lower driver acceptance rates than regular bookings. According to the regulator, acceptance rates for rides with add-ons were 38% in Delhi, 40% in Bengaluru, and 39% in Mumbai, compared to 62%, 68%, and 68% for regular bookings in those respective cities.
The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, also classified the feature as a “dark pattern.” The order noted that the interface did not provide users an option to close the payment prompt while waiting for a driver, effectively “confirm-shaming” passengers. The authority further stated that this practice disadvantaged consumers, particularly those at critical locations like hospitals, airports, and railway stations who were more reliant on securing timely transport.
Key facts
- The CCPA fined ANI Technologies Rs 10 lakh and ordered it to comply within 15 days.
- The “tip” feature was introduced on April 27, 2025, and later renamed “Choose to Add On” on May 22, 2025.
- Data showed that regular bookings had higher driver acceptance rates than those with added tips in Delhi, Bengaluru, and Mumbai.
- During the 15-day study period, consumers paid approximately Rs 56 lakh in accepted add-ons.
- The CCPA cited the Motor Vehicles Aggregators Guidelines, 2025, which only permit voluntary tipping after a journey is completed.
Why it matters
The regulator’s decision prohibits the use of pre-ride payment prompts that solicit additional fares before a service is fulfilled. By branding the feature a “dark pattern,” the CCPA has signalled a stricter stance against digital interfaces that manipulate consumer choices through fear of service denial.
Background
The investigation followed a show-cause notice issued to the company on May 28, 2025. The company’s counsel had previously argued that its platform operates on a zero-commission subscription model and that 100% of the tips or add-on amounts were transferred to the drivers.
Source: Economic Times, Indian Express
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