CCPA needs more teeth to tame dark patterns; industry demands tougher regulation and penalties

When Uber quietly introduced a pre-selected tip during the ride checkout process in India, it reignited public debate around manipulative design practices— commonly known as dark patterns. What may have seemed like a minor UX tweak drew the attention of the Central Consumer Protection Authority (CCPA), which deemed it an "unfair trade practice." The incident has now snowballed into a broader investigation, reportedly involving multiple ride-hailing platforms including Ola and Rapido, as regulatory concerns mount over deceptive digital nudges that impact user choice.

Union Minister of Consumer Affairs Pralhad Joshi called Uber’s ‘advance tip’ an “unethical and exploitative” practice.

This isn’t a one-off concern. The tipping feature, in various forms, has become increasingly common across the mobility sector. Even Namma Yatri—a platform built on the Open Network for Digital Commerce (ONDC), offers a similar functionality through its “Add More” option. The feature allows riders to voluntarily add extra fare as a gesture of appreciation to drivers, particularly during long pickups or peak-hour commutes.

Namma Yatri, the Bengaluru-based auto-hailing app launched in November 2022, was among the first to introduce advance tipping in India.

While Namma Yatri has emphasized that the feature is optional, transparent, and rider-led, its mainstream presence has fueled discussions on the fine line between user empowerment and subtle coercion.

Rise of a Grey Zone

Experts argue that such UI features often tread murky waters. What appears as a value-added option to support drivers can, when poorly designed or vaguely labeled, amount to psychological pressure on users—pushing them into paying more than intended. According to Sonam Chandwani, Managing Partner at KS Legal & Associates, “Whether it’s called a tip, donation, or convenience charge, what matters is whether the user was genuinely informed and consenting. Persistent use of dark patterns is a betrayal of digital trust.”

Dark patterns, by design, rely on exploiting behavioral tendencies like the default effect, where users are more likely to accept pre-selected options without conscious review. This tactic isn’t limited to mobility. From e-commerce platforms that sneak add-ons into shopping carts to subscription-based apps that make cancellations arduous, manipulative design has become embedded in digital ecosystems.

In 2023, the CCPA issued the Guidelines for Prevention and Regulation of Dark Patterns, banning 13 forms of manipulative UX, including “basket sneaking”, “forced action”, and “confirm shaming.” Yet, violations continue to surface, and enforcement remains largely reactive.

A Sector-Wide Reckoning

Following the Uber case, the CCPA is now reportedly assessing similar features on other ride-hailing apps. While CCPA, Uber and Ola did not respond to queries from Storyboard18, Rapido issued a statement clarifying the structure of its pricing.

“For autos and cabs, we follow a zero-commission SaaS model. The fare is agreed upon directly by the driver and passenger via a price selection ticker on the app—there’s no advance tip from our side,” a Rapido spokesperson said. “In the bike segment, passengers have the option to add an extra fare before requesting a ride. This is a completely optional mechanism meant to reflect real-time demand, and is intended to ensure transparency and choice.”

Rapido argues that the complete ride fare is directly paid by the customer to the driver via UPI/Cash and payment is never consumed on the Rapido App. (In picture: Rapido app and 'advance tipping' feature)

Still, the regulatory concerns aren’t just about intentions—they’re about outcomes. “The challenge is that even if tipping is voluntary, poor UI can make it seem mandatory,” says Sourya, Associate Director at Jajabor Brand Consultancy. “Design teams often focus on conversion metrics, not compliance. And legal teams aren’t always looped into the product pipeline.”

The Business Case for Design Ethics

Beyond compliance, there’s a business incentive to reevaluate manipulative design. Rishi Agrawal, CEO of Teamlease Regtech, notes that features like advance tipping or auto-renewals often drive annuity-based revenue, inflating user value and retention figures—key metrics in investor discussions. “But this short-term growth hack risks long-term trust erosion,” he warns.

Platforms like Namma Yatri have taken a more community-driven approach. In a LinkedIn post, co-founder and COO Shan M S addressed concerns about its “Add More” feature. “It’s 100% voluntary, customer-led, and the UI now clearly reflects this. We have no financial stake in pricing. Our goal is to offer a fair, sustainable, and empathetic system for both drivers and riders.”

This model has found resonance with a growing segment of Indian users looking for fairness and transparency in mobility services. Namma Yatri's open, zero-commission model has reportedly enabled drivers to collectively earn over Rs 1,500 crore—while avoiding traditional surge pricing, discounts, or opaque commissions.

However, the presence of similar features across platforms, regardless of ownership or business model, has spotlighted the need for consistent and enforceable regulation. Experts argue that the current structure of post-violation probes and warning notices isn’t enough. What’s needed is proactive enforcement.

Chandwani suggests, “Introduce mandatory UX audits, especially for platforms operating at scale. Penalize deceptive design. And make public the names of violators to create a deterrent effect.”

Others advocate for broader public education—browser extensions, consumer literacy campaigns, and in-app alerts to flag dark patterns in real time.