The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Roppen Transportation Services Pvt Ltd, which operates ride-hailing platform Rapido, for allegedly using misleading prompts, unfair trade practices and dark patterns that encouraged consumers to pay more while booking rides.
The action followed the regulator's examination of practices related to advance tipping and dynamic pricing on ride-hailing platforms. The CCPA found that Rapido's app displayed prompts during the booking process that could give users the impression that paying a higher amount would increase their chances of getting a ride.
Among the messages examined by the authority were prompts such as "Captains aren't accepting at Rs 60. Try adding +10, +20, +30" and "Higher the price, higher the chance of getting a ride". The CCPA said such messages were displayed after a fare had already been quoted and the consumer had proceeded with the booking.
The regulator classified the practice as "Confirm Shaming", a dark pattern recognised under the Guidelines for Prevention and Regulation of Dark Patterns, 2023. Such practices can influence consumers through pressure, fear or a sense that they may lose access to a service unless they agree to an additional action or payment.
The CCPA also examined Rapido's "Set your price" feature. According to the authority, the interface visually encouraged users to increase the fare by displaying a higher chance of securing a ride in green when the amount was raised, while lowering the amount triggered red or orange warnings. The regulator classified this as "Interface Interference", another prohibited dark-pattern practice.
The authority rejected Rapido's argument that the additional payment was voluntary and that its matching algorithm operated independently of the amount offered. The CCPA noted that the prompts appeared while consumers were waiting for their bookings to be confirmed and that Rapido had not established through data that offering a higher amount actually improved the chances of securing a ride.
The regulator further observed that a tip is ordinarily a voluntary payment made after a service has been provided and should not be presented in a manner that makes consumers believe it is necessary to secure the service.
The CCPA has directed Rapido to discontinue the practices and comply with consumer protection requirements. The action comes as authorities increase scrutiny of digital platforms over interface designs and practices that could influence consumer choices without adequate transparency.
The Guidelines for Prevention and Regulation of Dark Patterns, 2023 prohibit platforms from using deceptive user-interface or user-experience practices designed to mislead consumers or undermine their decision-making.
The development also comes amid wider regulatory scrutiny of ride-hailing platforms, with other major companies in the sector reportedly being examined over similar pricing and booking practices.
