The Central Consumer Protection Authority (CCPA) has issued a formal notice to ride-hailing platform Uber India, raising concerns over its controversial ‘Advance Tip’ feature. The policy, which prompts users to offer a tip before confirming a ride to potentially receive faster service, has been slammed as unethical and misleading.
The CCPA stated that linking service quality or speed to an advance payment outside the fare structure violates consumer rights and fair trade practices. The authority emphasized that tipping should remain a voluntary act of appreciation after a service is delivered, not a precondition for basic expectations such as timely service.
Union Minister for Consumer Affairs, Pralhad Joshi, took to his official social media account to denounce the practice. He stated, “Forcing or nudging users to pay a tip in advance for faster service is unethical and exploitative. Such actions will not be tolerated.”
The government has demanded an explanation from Uber, asking the company to justify how this feature aligns with consumer protection norms. As of now, Uber has not publicly responded to the notice.
This regulatory action is part of a broader push by the Consumer Affairs Ministry to crack down on digital platforms that manipulate users through misleading pricing, hidden fees, or unfair policies. Authorities have indicated that similar scrutiny will be extended to other platforms if needed.