Rapido Fined ₹10 Lakh: Why CCPA Objected to Pre-Ride Tipping Prompts
The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on Rapido for displaying pre-ride tipping prompts that suggested consumers
The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on Rapido for displaying pre-ride tipping prompts that suggested consumers
Holding that Rapido’s pre-ride tipping prompts misled consumers into believing that additional payments would improve ride availability and confirmation, the CCPA found the practice to constitute misleading advertisements, an unfair trade practice and prohibited dark pattern.
“Rapido had engaged in a practice calculated to mislead consumers by both commission and omission overstating its actual service capability while concealing qualifying conditions for the purpose of promoting its business”.
“It is clear that the impugned mark has been adopted by Respondent 1 dishonestly to trade upon the goodwill and reputation of the petitioner under the RAPIDO marks and to associate itself with the petitioner.”