Consumer Watchdog Fines Rapido ₹10 Lakh, Warns Namma Yatri for Dark Patterns, Tipping Prompts

The Central Consumer Protection Authority (CCPA) of India has fined Roppen Transportation Services Pvt Ltd, the company that operates Rapido, ₹10 lakh. The reasons stated in its order are unfair trade practices, unfair contracts, and dark patterns in the way riders are prompted to add a tip before rides are confirmed.

The agency has also issued a warning to Moving Tech Innovations Pvt Ltd, which offers similar ride-hailing services under the name Namma Yatri, following an investigation stemming from a consumer complaint in 2025 alleging unfair trade practices. The CCPA has previously directed bike and cab aggregator companies to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023, and submit self-declarations stating they will do so. While orders have been issued to Rapido and Namma Yatri, investigations into Uber and Ola’s handling of the same issues are currently in progress.

As per an official statement from the Ministry of Consumer Affairs, Food & Public Distribution, the CCPA has been examining how these platforms handle pre-ride tipping and dynamic pricing. The recently issued orders say that prompts such as “Higher the price, higher the chance of getting a ride” amount to “Confirm Shaming”, which can be classified as a dark pattern.

In the case of Rapido, the CCPA found that riders were shown prompts to pay more money after they accepted the displayed price by confirming a booking. By telling users that drivers were not accepting this fare, riders were given the impression that paying more money would result in getting a ride quicker. Having already confirmed a booking, this created a sense of urgency and made riders fear they would not be able to get a ride, which the agency calls “confirm shaming”. This is a dark pattern, as described in the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

A second dark pattern identified by the CCPA in the Rapido app is a slider labeled “Set your price”, which is a colour-coded to encourage spending and designed to be easier to increase than decrease. This was categorised as “interface interference”.

The CCPA also held that the fare shown to a rider at the time of booking is calculated on the basis of distance, time, traffic, and taxes among other things, and so there is no justification to suggest that paying more will result in quicker service. A tip is meant to be voluntary payment in recognition of good service, not an incentive or requirement to be paid before the service even begins. Additionally, the Motor Vehicle Aggregator Guidelines, 2025, specify that tipping mechanisms are to be made available only after a ride is complete.

Another claim used by Rapido in advertising, "Guaranteed Auto in 5 mins or get Rs. 50", was also found to be misleading and unfair.

A show-cause notice was issued by the CCPA to Rapido in May 2025. In responding to it, Rapido claimed that riders are matched with drivers irrespective of tips offered upfront, which are voluntary. It also said such messages are only shown to riders who have waited some time to match with a driver, and that many rides are confirmed whether or not the rider takes action.  However, the CCPA held that this still put pressure on riders. Rapido has also not provided any evidence that paying the tip actually increases the likelihood of a match, and no such disclaimer is shown to riders.

Following two trials, the matter was escalated to the Director General (Investigation). Rapido’s parent company did not respond to notices or submit any fresh evidence as requested. Moreover, the agency noted a new message, saying “"Skip the wait! Get a ride faster by adding extra", which appeared to all riders immediately upon searching for a ride. This changed the nature of tipping from a reward for services performed, to a factor influencing service priority.

Following further hearings and procedural discussions, the CCPA directed Rapido to stop showing the misleading messages and invoked its power under the Consumer Protection Act, 2019, to issue a fine of ₹10 lakh. It has also warned that subsequent contraventions will result in fines of ₹50 lakh each. Rapido has been directed to submit a compliance report within 15 days.

In the case of Namma Bengaluru, the CCPA noted a message shown to riders saying “High Demand, adding a tip helps you find a ride faster", which it says is a prima facie violation of the same provisions of the Consumer Protection Act and Guidelines for Prevention and
Regulation of Dark Patterns. A show-cause notice was issued in May 2025. Again, the CCPA found Namma Bengaluru’s replies inadequate.

Following hearings, Namma Bengaluru decided to remove the prompt in July 2025. In further filings, it said this resulted in a revenue impact of approximately ₹50 crore. Reviewing all submissions, the CCPA has now closed its investigation, only directing Namma Bengaluru to remain compliant.

Additional details regarding investigations into Uber and Ola are likely to be released soon.