CCPA proceedings against Namma Yatri tipping design: key findings and closure

Background and regulatory context

The Central Consumer Protection Authority (CCPA), constituted under Section 10 of the Consumer Protection Act, 2019, is empowered to act against violations of consumer rights, unfair trade practices, and false or misleading advertisements that adversely affect consumers as a class. Under Section 19(1) of the Consumer Protection Act, 2019, CCPA can initiate or cause to be initiated a preliminary inquiry whenever it receives information, a complaint, directions from the Central Government, or proceeds suo motu, to determine if a prima facie case exists.

In In re Moving Tech Innovations Private Limited (Namma Yatri) (CCPA Delhi), the CCPA examined the interface design and pricing-related prompts on the “Namma Yatri” ride-hailing application, particularly in relation to a pre-ride tipping feature and the message:

“High Demand, adding a tip helps you find a ride faster.”

The matter involved an assessment of whether this user interface amounted to a dark pattern, a misleading advertisement, or an unfair trade practice under the Consumer Protection Act, 2019, and associated guidelines.

Origin of the complaint and preliminary examination

A complaint dated 16.05.2025 was received alleging unfair trade practices on ride-hailing platforms arising from:

  • Manipulative tipping features shown before ride confirmation; and
  • Pricing approaches perceived as exploitative.

The complaint stated that certain platforms prompted users to pay a tip to drivers before a ride was confirmed, indicating that doing so would “speed up” or facilitate faster booking. According to the complainant, this design could pressure consumers into paying extra out of fear of delays or denial of service.

In response, CCPA reviewed multiple ride-hailing platforms, including the “Namma Yatri” platform operated by Moving Tech Innovations Private Limited.

During this preliminary review, CCPA noted:

  • The application quoted an upfront fare containing base fare, time and distance components, peak pricing, applicable fees, tolls and taxes.

  • In some instances, a longer estimated waiting time was displayed, attributable to conditions such as limited driver availability or traffic.

  • Crucially, a prompt appeared during booking stating:

    “High Demand, adding a tip helps you find a ride faster.”

CCPA formed a prima facie view that:

  • This message could create an expectation that adding a tip would improve the speed of acquiring a ride; and
  • Such messaging might influence consumer decision-making during the booking process.

At this stage, CCPA recorded preliminary concerns under:

  • Sections 2(28), 2(46) and 2(47) of the Consumer Protection Act, 2019;
  • Guidelines for Prevention and Regulation of Dark Patterns, 2023; and
  • Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.

Show Cause Notice and initial defence by Moving Tech Innovations

Issue of Show Cause Notice

On 28.05.2025, CCPA issued a Show Cause Notice to Moving Tech Innovations Private Limited (Namma Yatri), requiring the company to:

  • Explain the nature and purpose of the “High Demand” prompt and the Extra Fare / tip feature; and
  • Provide supporting documents addressing whether the interface constituted an unfair trade practice, dark pattern, or misleading communication.

Company’s reply dated 10.06.2025

In its written response, the company stated, among other points:

  • The “Namma Yatri” application is a direct-to-driver ride-sharing platform launched in November 2022, claimed to be compliant with applicable legal and regulatory obligations.
  • It denied using dark patterns or engaging in misleading practices, indicating that internal policies were in place to ensure ethical conduct.
  • It specifically denied that the advertisement “Guaranteed Auto in 5 mins or get Rs. 50” or any phrase containing the word “chance” was ever used on its platform.

Regarding the impugned prompt, the company submitted:

  • The phrase “High Demand — adding a tip helps you find a ride faster” was meant to indicate that a voluntary tip could encourage drivers to accept rides in periods of elevated demand.
  • It was not intended as a compulsion or misrepresentation.
  • The feature had already been discontinued with effect from 22.05.2025.

CCPA, however, considered that the response did not fully address the influence such prompts could exert on consumer choice and proceeded with a more detailed inquiry.

Hearings and data-based submissions

Hearing on 04.07.2025

On 04.07.2025, representatives of the company appeared before CCPA. At this hearing:

  • The company reiterated that the feature was optional and not coercive;
  • It emphasised that the prompt had already been withdrawn; and
  • CCPA expressed concern over displaying a tipping-related prompt at the pre-booking stage, observing its potential to affect consumer decisions.