Big CCPA action: Rapido fined Rs 10 lakh for ‘confirm shaming’ dark pattern, misleading ‘pay more’ ride…

As per the latest business developments, The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on Roppen Transportation Services Pvt Ltd, which operates Rapido, over misleading advertisements, unfair trade practices, unfair contract terms and dark patterns in the platform’s ride-booking interface.

The 34-page order dated August 31, noted by Moneycontrol, was passed by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra after examining Rapido’s practices concerning advance tipping and dynamic pricing. The authority stated the platform encouraged riders to gain the amount offered while a booking was still being processed.

The proceedings followed a representation received on May 16, 2025, alleging manipulative tipping practices and surge pricing. The CCPA subsequently examined multiple cab and bike-taxi aggregators, including Rapido.

‘Elevated the price, elevated the chance of getting a ride’

According to the order, Rapido initially generated and displayed a fare based on its algorithm. After a consumer proceeded with the booking, the app displayed messages including “Captains aren't accepting at Rs 60. Try adding +10, +20, +30” and “Elevated the price, elevated the chance of getting a ride”.

The CCPA held that these prompts could make consumers believe that paying more would improve their prospects of securing a ride, despite the platform having already quoted a fare. It found the practice amounted to “Confirm Shaming”, a dark pattern recognised under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

The authority additionally examined Rapido’s “Set your price” interface. It found that increasing the amount displayed “elevated chance of getting a ride” in green, while lowering it triggered red or orange warnings. The slider additionally offered greater scope to gain than decrease the price. The CCPA classified this as “Interface Interference”.

CCPA rejects Rapido’s tipping argument

Rapido argued that tipping was voluntary and that its matching algorithm continued functioning irrespective of whether an additional amount was offered. It additionally compared the prompts to real-time negotiations between riders and drivers.

The CCPA rejected the submissions, saying the prompts appeared when consumers had already committed to a booking and were awaiting confirmation. The authority noted that Rapido had not produced data establishing that an additional payment actually increased the likelihood of obtaining a ride.

It additionally relied on the Motor Vehicle Aggregator Guidelines, 2025, under which a voluntary tipping facility is to be available only after completion of the journey, and not at booking or during the ride. The authority stated advance tipping effectively converted a post-service gratuity into a pre-service payment.

Earlier penalty and final directions

The CCPA noted that Rapido had already been penalised on August 20, 2025, in relation to misleading advertising concerning its “Guaranteed Auto in 5 mins or get Rs.50” campaign. It treated the continued use and evolution of the disputed prompts as a subsequent contravention.

Rapido operates across more than 120 cities, and the CCPA stated the scale and duration of the practices, alongside their potential effect on consumers, warranted regulatory action.

The authority has directed Rapido to immediately discontinue the disputed prompts and any similar interface or design that pressures consumers into paying more. It must comply with the Consumer Protection Act, 2019, the 2023 dark-pattern guidelines, the 2022 misleading-advertisement guidelines, and the Consumer Protection (E-Commerce) Rules, 2020. Rapido must additionally maintain official email and contact details and submit a compliance report within 15 days. The final penalty is Rs 10 lakh.

CCPA had earlier issued notices to Uber, Ola, Rapido and Namma Yatri over advance-tipping and dark-pattern practices; its examination of Uber and Ola stays underway.