CCPA Fines Ola ₹10 Lakh For Advance Tipping Prompts

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 Lakh on ANI Technologies Pvt Ltd, parent of ride-hailing platform Ola, for misleading customers into paying extra to improve their chances of getting a ride.

In an order dated November 10, the consumer watchdog said Ola’s advance tipping feature is an unfair trade practice and an unfair contract under the Consumer Protection Act, 2019.

The CCPA also directed Ola to stop the practice immediately, pay the penalty within 15 days of receiving the order and submit a compliance report within the same period.

The proceedings followed a complaint received against this issue where the app prompted users to pay extra to get bookings faster.

“Adding a tip might help increase the chances of getting a ride faster,” a message read.

Customers were initially offered preset amounts ranging from ₹10 to ₹40. These later increased to as much as ₹140, while customers could also enter custom amounts of up to ₹499.

Ola argued that the payment was voluntary and went directly to drivers. It said the feature encouraged drivers to accept rides that were less attractive to them, particularly those requiring longer distances to reach passengers. The company also said that tipping did not affect its ride allocation system or guarantee faster ride confirmation.

However, the CCPA found that Ola’s own data did not support its claims. Data for June 1-15, 2026, showed that in Delhi, drivers accepted 38% of ride requests with an add-on, compared with 62% of requests without one. In Bengaluru, the acceptance rates were 40% and 68%, respectively, while in Mumbai they stood at 39% and 68%.

The authority also noted that Ola changed the feature’s name from ‘tip’ to ‘add-on’ on May 22, 2025, but continued to show messages suggesting that additional payments could help customers get a ride faster. During a hearing in June 2026, Ola demonstrated that its app still displayed messages such as “Improve your chances of quicker ride confirmation!” alongside preset payment amounts. The CCPA said the change in wording did not alter how the feature worked.

The authority also examined Ola’s data for Delhi, Bengaluru and Mumbai for June 1-15, 2026. The platform received nearly 39.94 Lakh ride requests across the three cities, of which 3.93 Lakh, or around 9.8%, included an add-on. Drivers accepted 1.51 Lakh of these requests.

Based on the average add-on amounts reported by Ola, the CCPA estimated that customers paid around ₹56 Lakh over and above the disclosed fares for these accepted rides.

The share of customers opting for add-ons also increased between June 2025 and June 2026. In Delhi, it rose from 8.2% to 11.04%, while in Bengaluru it increased from 9.7% to 10.64%. In Mumbai, it went up from 7.9% to 8.37%.

The CCPA rejected Ola’s argument that only a small number of customers used the feature, noting that everyone booking a ride was shown the prompts while waiting for confirmation.

It also said the feature could particularly affect people booking rides from hospitals, railway stations, bus terminals and airports, where they may be in a hurry and more dependent on getting a ride quickly.

CCPA Flags Confirm Shaming Dark Pattern

The CCPA’s action comes after the Ministry of Road Transport and Highways (MoRTH) directed ride-hailing aggregators, including Uber, Rapido and Ola, to remove tipping prompts displayed before or during a ride, citing violations of the Motor Vehicle Aggregator Guidelines, 2025.

In a directive dated August 11, the ministry flagged prompts such as “Advance Tip”, “Choose an Add-on” and “Improve your chances of quicker ride confirmation”. It also objected to messages suggesting that tipping could increase the chances of a driver accepting a ride.

Under Clause 14.15 of the guidelines, passengers can tip drivers only after completing a ride. Aggregators cannot offer tipping options during booking, before a ride starts or while it is in progress. The guidelines also stipulate that the entire tip must go to the driver, without any commission charged by the aggregator, and that tipping options must not be misleading or manipulative and must comply with the Consumer Protection Act, 2019.

The CCPA rejected Ola’s argument that the additional payment was merely a voluntary tip, observing that tipping ordinarily represents appreciation for services already rendered, whereas Ola solicited payments before drivers accepted bookings.

It also highlighted a contradiction in Ola’s arguments. If the add-on did not influence ride acceptance, the representation that it improved booking chances was misleading. If it did, customers who did not pay were placed at a relative disadvantage.

The authority classified the interface as confirm shaming, a dark pattern prohibited under the Guidelines for Prevention and Regulation of Dark Patterns, 2023. It noted that the prompts created apprehension among customers that declining to pay could result in delayed confirmation or no ride at all. The absence of an option to decline or close the prompt was also flagged.

The CCPA further rejected Ola’s contention that it did not derive any commercial benefit from the feature because the entire add-on amount went to drivers. It observed that the feature could improve the platform’s attractiveness to drivers and its ride fulfilment rates, thereby serving Ola’s commercial interests.

In September 2026, the CCPA had imposed a similar ₹10 Lakh penalty on ride-hailing platform Rapido over its advance tipping feature, citing misleading advertisements, unfair trade practices and dark patterns.

While determining Ola’s penalty, the authority considered the scale and duration of the practice, its impact on consumers and the company’s financial position. It noted that Ola operated across more than 200 cities in India and had over 40 Mn users.

The CCPA also noted that Ola reported standalone revenue from operations of around ₹1,060 Cr in FY25. It said the ₹10 Lakh penalty was less than 0.01% of the company’s revenue and was warranted to deter similar violations.

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