CCPA issues notice to Uber over ‘advance tip’ feature, seeks explanation

The CCPA’s notice comes amid mounting complaints from users about ride cancellations and rising pressure tactics on mobility platforms. Uber has not yet responded publicly to the notice.
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SERGIO PEREZ/Reuters

The Central Consumer Protection Authority (CCPA) on Wednesday issued a notice to Uber, seeking an explanation for its practice of encouraging users to pay an “advance tip” in exchange for faster ride acceptance. The move follows Union Consumer Affairs Minister Pralhad Joshi’s directive to the watchdog, calling the feature “unethical” and potentially in violation of fair trade norms.

“The practice of ‘Advance Tip’ is deeply concerning,” Joshi wrote on X. “Forcing or nudging users to pay a tip in advance, for faster service, is unethical and exploitative. Such actions fall under unfair trade practices. A tip is a token of appreciation—not a prerequisite for service.”

The minister added that he had asked the CCPA to examine the issue, and confirmed that the regulator has now formally sought a response from Uber. “Fairness, transparency and accountability must be upheld in all customer interactions,” he said.

Uber has not yet commented publicly on the notice.

The development comes amid rising user complaints around ride acceptance practices on mobility platforms and growing scrutiny of tipping mechanisms, especially in markets like India where affordability and trust remain central to consumer experience

Published on May 21, 2025