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CCPA issues notice to Uber over unethical 'advance tip' feature
Consumer Affairs Minister Prahlad Joshi says tipping must be voluntary and post-service; Uber's advance tip feature nudges users to pay before ride begins
Udisha Srivastav New Delhi
The Central Consumer Protection Authority (CCPA) on Wednesday issued a notice to ride-hailing platform Uber seeking an explanation over its 'advance tip' feature, Union Minister for Consumer Affairs Prahlad Joshi said in a post on X. The minister referred to the feature as unethical and exploitative, stating that such actions fall under unfair trade practices.
Stating that tipping is a voluntary gesture offered after the service rather than a pre-service expectation, the minister wrote: 'The practice of 'advance tip' is deeply concerning. Forcing or nudging users to pay a tip in advance, for faster service, is unethical and exploitative. Such actions fall under unfair trade practices. Tip is given as a token of appreciation, not as a matter of right, after the service.' The 'advance tip' feature nudges users to pay an additional amount prior to the journey for faster ride confirmations and pickups.
The minister added that he had earlier directed the concerned authority to look into the issue. 'Taking cognisance of this, I had asked CCPA to look into it, and today, CCPA has issued a notice to Uber in this regard, seeking explanation from the platform,' he said.
Uber did not immediately respond to queries sent via email.
This is not the first time a notice has been sent to Uber by the consumer protection authority. In January this year, the CCPA issued notices to cab aggregators Uber and Ola for allegedly charging different rates to consumers for identical routes based on their mobile phone operating systems. Both platforms, however, denied the allegation, stating that they follow a uniform pricing policy and do not differentiate between consumers using iPhones or Android phones.
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