Article Title: Uber tip move backfires
23-05-2025
Polity & Governance Current Affairs Analysis
Context
• The Central Consumer Protection Authority, under the Department of Consumer Affairs, is sending notices to Rapido, Ola and Uber, over the ride-hailing apps’ practice of seeking “advance tips” to hasten a trip booking’s confirmation, Union Minister Pralhad Joshi said on X on Thursday. Mr. Joshi had previously on Wednesday announced a notice had been sent to Uber.
• The three apps have in recent months pushed riders to tip more to hail a ride, giving drivers an opportunity to earn more money from a fare, which is otherwise subject to a commission to the firms running the apps.
• Tipping on ride hailing apps has historically been after rides, but in recent months, apps have started offering the feature while the booking of a trip is in progress, inciting customers to add to their fare to get a guaranteed ride.
Central Consumer Protection Authority (CCPA)
• CCPA is the regulatory body established under Section 10 of the Consumer Protection Act (CPA), 2019, it regulates matters related to consumer rights violations and unfair trade practices.
• The act empowers the CCPA to prevent false or misleading advertisements and ensure consumer rights are protected.
• It operates under the Ministry of Consumer Affairs, Food and Public Distribution.
•Powers of the - Section 21 of CPA, 2019 grants the CCPA the power to issue directions and penalties against false or misleading advertisements.
• Penalties - imprisonment of up to 2 years and a fine of up to Rs. 10 lakh.
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