The consumer authority found Rapido’s pre-ride payment prompts used dark patterns, pressured riders to pay more and made unsupported claims that higher payments improved their chances of getting a ride.
The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on Rapido, for misleading advertisements, unfair trade practices, an unfair contract and the use of dark patterns to prompt riders to pay more before their rides were confirmed.
The action against Roppen Transportation Services Private Limited, the company operating the ride-hailing platform, follows a sector-wide examination by the consumer watchdog of cab and bike-taxi aggregators operating in India, focusing on practices related to pre-ride tipping and dynamic pricing.
During its examination, the CCPA found that the Rapido app displayed prompts encouraging riders to increase the amount they were willing to pay while their booking was being processed.
Among the messages displayed on the app were:
“Higher the price, higher the chance of getting a ride.”
Another prompt said, “Captains aren’t accepting at Rs 60. Try adding +10, +20, +30.”
According to the CCPA, Rapido’s algorithm first quoted a fare to the rider. After the rider booked at that fare, the app prompted them to pay more, stating that drivers were not accepting the original price.
The authority said this created a false impression that a rider’s chances of getting a ride quickly depended on paying an additional amount.
The CCPA said that, once a rider had committed to a booking, there was limited scope for negotiation. The prompts could create a sense of urgency and fear of losing the ride if the consumer declined to pay more, it added.
The authority classified the practice as “Confirm Shaming”, a dark pattern identified under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
According to the CCPA, prompting consumers to make an additional payment after they had accepted the initially displayed fare could place them under psychological pressure.
This was particularly significant because the rider had already reached the booking stage and was relying on the platform to secure a ride, the authority said. A message suggesting that the chances of getting a ride were lower without an additional payment could therefore push the consumer towards paying more.
‘SET YOUR PRICE’ SLIDER UNDER SCRUTINY
The Consumer Protection Authority also examined Rapido’s ‘Set your price’ feature and raised concerns over how its pricing options were presented.
According to the authority, the slider used different colours to display options to increase or decrease the fare. When riders increased the price, the message ‘Higher chance of getting a ride’ appeared in green. When they tried to lower it, a warning appeared in red or orange.
The CCPA also noted that the slider offered more space to increase the price, while providing comparatively less scope to reduce it.
The authority classified this design as ‘Interface Interference’, another dark pattern, saying the interface influenced consumers towards choosing a higher amount.
