CCPA slaps notice to ride-hailing platform Uber for seeking 'advance tip' from passengers for getting faster service
NEW DELHI: Country's apex
consumer rights
watchdog, CCPA has issued notice to
ride-hailing platform
Uber for seeking "advance tip" from passengers for getting faster service.
The
Central Consumer Protection Authority
(CCPA) issued the notice following an instruction from consumer affairs minister
Pralhad Joshi
.
In a post on X, Joshi said, "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."
— JoshiPralhad (@JoshiPralhad)
He added that fairness, transparency and accountability must be upheld in all customer interactions.
Uber had introduced the feature of "adding a tip" for faster pick up when someone books a cab. As per its policy, drivers get the full tip and the customer also has the option to change it at a later stage.
CCPA has sought Uber's response on this.
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