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The Central Consumer Protection Authority (CCPA) today issued a notice to ride-hailing major Uber seeking an explanation over its “advance tip” feature for faster ride confirmations and pickups.
The move comes after Union Consumer Affairs Minister Pralhad Joshi flagged it as “unfair trade practices” and asked the watchdog to look into it.
“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 minister said in an X post.
“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. Fairness, transparency and accountability must be upheld in all customer interactions,” he added.
Uber’s “advance tip” prompt appears during the booking process and encourages users to pre-select a gratuity amount before starting the ride.
This comes two days after Uber partnered with the state-backed Open Network for Digital Commerce (ONDC) to offer metro ticketing facility through its app.
Meanwhile, the Centre has also announced the launch of a new state-backed ride-hailling service called ‘Sahkar Taxi’ that would compete with giants like Ola, Uber and Rapido.
(The story will be updated soon)
The post CCPA Notice To Uber Over ‘Advance Tip’ For Faster Service appeared first on Inc42 Media.
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