Consumer rights watchdog directs Ola to scrap advance tipping feature, imposes Rs 10 lakh penalty

The Central Consumer Protection Authority on Tuesday imposed a penalty of Rs 10 lakh on cab aggregator Ola for misleading customers into paying extra to improve their chances of securing a ride.

It directed the company to discontinue the advance tipping feature and remove prompts that encouraged customers to make additional payments before a driver accepted their booking.

The consumer rights watchdog said the feature amounted to misleading advertising, an unfair trade practice and an unfair contract under the 2019 Consumer Protection Act.

The action followed a complaint filed in May 2025 against the feature, which suggested that paying extra could help customers secure a ride faster.

The app displayed the message: “Adding a tip might help increase the chances of getting a ride faster.”

Customers were initially offered pre-set amounts ranging from Rs 10 to Rs 40, which later increased.

The consumer right authority found that the ride-hailing application allowed additional payments of up to Rs 499.

Ola defended the feature saying that the payments were voluntary and transferred directly to drivers without any deduction by the platform. It argued that the option helped drivers accept rides that might otherwise be commercially unviable, particularly when they had to travel a longer distance to reach a passenger.

The company maintained that paying extra did not guarantee faster booking...

Read more