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Union food and consumer affairs minister Pralhad Joshi shared an X post criticising Uber’s “Advance Tip” feature for quicker ride services. He labelled it “unethical and exploitative” and shared that the Central Consumer Protection Authority (CCPA) has issued a notice to the company in this regard.
“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 wrote.
“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,” Joshi continued, adding, “Fairness, transparency and accountability must be upheld in all customer interactions.”
Take a look at the post here:
How did social media react?
The move prompted mixed reactions from social media users. While some appreciated it, some questioned what actions would be taken against the other ride-hailing services following similar practices.
“It’s being done by everyone now. Rapido is also doing it,” an individual pointed out. Another asked, “What about Ola?”
A third remarked, “Totally agree, this is unethical practice.” A fourth wrote, “Great work, this is not good practice. With this tip system, it will become a bidding system, exploiting customers.”
What’s next?
According to a report by Live Mint, a senior CCPA officer said that the organisation will initiate further actions if Uber’s response to this matter is unsatisfactory. The report further claims that Uber could face penalties or an order to roll back the feature.
Consumer rights groups slam practice:
“This distorts the voluntary nature of tipping and can amount to coercive monetisation. Platforms must clearly differentiate between service charges and optional tips,” Ashim Sanyal, CEO of consumer protection group Consumer Voice, told Live Mint.
“Such unethical trade practices violate the Consumer Protection Act and warrant strict legal action,” Manish K Shubhay, partner at The Precept-Law Offices, told the outlet. “Companies must uphold transparency and fairness in all consumer dealings, and any attempt to exploit customers under the guise of service is indefensible.” Shubhay added.
