CCPA issues notice to Uber on 'Advance Tip', after minister Pralhad Joshi took notice
New Delhi [India], May 22 (ANI): Indian minister of Consumer Affairs, Food and Public Distribution, Pralhad Joshi, raised concern over the feature of 'Advance Tip' in Uber app, and said he believes that the practice of tipping before the service is unfair and unethical.
"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," Union minister posted on social media platform 'X'.
Uber asks for Advance tip of Rs 50, Rs 75 or Rs 100 from customers.
He further added that, he had asked Central Consumer Protection Authority (CCPA) to look into the issue, and "CCPA has issued a notice to @Uber in this regard, seeking explanation from the platform."
Last week, the CCPA sent a notice to Uber, asking the company to explain its practice of collecting advance tips from users. The platform has been given 15 days to respond.
According to the minister, tips should be a voluntary gesture of appreciation given after the service is complete, not something paid upfront.
However, Uber is not the first ride-hailing services to have 'Advance Tip' feature. There are various apps which have this feature with them such as Rapido, Namma Yatri, and many more.
E-grocery and quick-commerce platform like 'blinkit' also asks for Advance tip for delivery agent, which is optional. The tip is between Rs 20 to Rs50, it can also be customise by the buyer.
Earlier this year, Union Minister, announced that the Central Consumer Protection Authority (CCPA) has issued notices to major cab aggregators, Ola and Uber, over alleged differential pricing based on the type of smartphone being used by consumers. (ANI)
(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)
