Ola fined Rs 10 lakh over feature misleading customers

New Delhi: The Central Consumer Protection Authority (CCPA) has fined Ola Rs 10 lakh for misleading customers through a pre-ride tipping feature suggesting extra payment could speed up bookings. The authority ordered the company to remove the prompts, according to reports.

In an order dated November 10, CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra held that the feature amounted to misleading advertising, an unfair contract and an unfair trade practice. The proceedings followed a complaint received in May 2025 alleging that the app pressured users to offer tips before a driver had accepted their ride.

The authority found that the prompts were exploitative at hospitals, railway stations, bus terminals and airports, where passengers were more dependent on securing transport quickly. Its investigation found that ride requests without tips had higher acceptance rates, undermining the suggestion that extra payments improved booking chances.

Ola argued that tipping was voluntary, did not guarantee a ride and was intended to reward drivers. It said the feature was an industry practice and that the platform did not determine whether drivers accepted bookings.

The CCPA rejected the defence, finding that the company could not claim the add-on had no influence on ride acceptance, even though it suggested it could help users get a ride faster. It said the design disadvantaged customers unwilling or unable to pay more than the fare already quoted.

The authority directed Ola to discontinue all pre-ride prompts, preset amounts, and interface designs that solicit additional payments, and to comply with consumer protection and dark-pattern guidelines.