CCPA issues notice to Uber over ‘Advance Tip’ feature for faster service

CCPA has issued a notice to Uber in this regard, seeking explanation from the platform. File.
| Photo Credit: Reuters

Consumer protection watchdog CCPA has issued a notice to ride-hailing platform Uber for allegedly “forcing or nudging” users to pay advance tips for faster service.

“The practice of ‘Advance Tip’ is deeply concerning,” Consumer Affairs Minister Pralhad Joshi said in a social media post.

“Forcing or nudging users to pay a tip in advance, for faster service is unethical and exploitative. Such actions fall under unfair trade practices,” the minister wrote.

Mr. Joshi emphasised that tipping is meant as a token of appreciation, given after service completion, not as an entitlement beforehand.

Taking cognizance of the issue, the Minister directed the Central Consumer Protection Authority (CCPA) to investigate the matter.

“Today CCPA has issued a notice to Uber in this regard, seeking explanation from the platform,” he posted.

“Fairness, transparency and accountability must be upheld in all customer interactions,” Joshi added.