New Delhi. The Central Consumer Protection Authority (CCPA) has imposed a fine of Rs 10 lakh on ‘Ropen Transportation Services Pvt Ltd’, the company running the ‘Rapido’ ride-hailing platform.
The Ministry of Consumer Affairs, Food and Public Distribution said in a statement issued on Tuesday that the Central Consumer Protection Authority, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, has imposed a fine of Rs 10 lakh on ‘Ropen Transportation Services Pvt Ltd’, the company running the ‘Rapido’ ride-hailing platform.
The ministry said that CCPA has imposed this penalty for misleading advertisements, unfair trade practices, unfair contracts and ‘dark patterns’ (such as inducing riders to pay more money even before the ride is confirmed).
Along with this, CCPA has directed Rapido to stop such misleading prompts and practices that incite customers to pay more.
The action by the Central Consumer Protection Authority follows a sector-wide investigation into advanced-tipping and dynamic pricing practices by ride-hailing platforms.
CCPA has taken this action for the use of dark patterns such as ‘confirm shaming’ and ‘interface interference’. The authority has found evidence of ride-booking of Rapido.