Union meals and shopper affairs minister Pralhad Joshi shared an X publish criticising Uber’s “Advance Tip” function for faster journey companies. He labelled it “unethical and exploitative” and shared that the Central Shopper Safety Authority (CCPA) has issued a discover to the corporate on this regard.
Minister Pralhad Joshi shared this screenshot, slamming Uber’s “Advance Tip” function. (X/@JoshiPralhad)
“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, including, “Fairness, transparency and accountability must be upheld in all customer interactions.”
Check out the publish right here: How did social media react?
The transfer prompted blended reactions from social media customers. Whereas some appreciated it, some questioned what actions could be taken towards the opposite ride-hailing companies following comparable practices.
“It’s being done by everyone now. Rapido is also doing it,” a person identified. One other requested, “What about Ola?”
A 3rd 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 subsequent?
Based on a report by Dwell Mint, a senior CCPA officer mentioned that the organisation will provoke additional actions if Uber’s response to this matter is unsatisfactory. The report additional claims that Uber may face penalties or an order to roll again the function.
Shopper rights teams slam observe:
“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 shopper safety group Shopper Voice, advised Dwell Mint.
“Such unethical trade practices violate the Consumer Protection Act and warrant strict legal action,” Manish Okay Shubhay, companion at The Principle-Legislation Workplaces, advised 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.