Ride-hailing giants Ola and Uber have denied allegations of charging different fares based on whether a customer books a ride using an Android or iPhone device, Union Minister for Consumer Affairs Pralhad Joshi informed Parliament today.
The controversy, which first surfaced in December last year, suggested that iPhone users were being charged higher fares than Android users for identical trips. This prompted the Central Consumer Protection Authority (CCPA) to step in and seek explanations from both companies.
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“On January 10, 2025, the CCPA formally asked Ola and Uber to respond to accusations of differential pricing. Both companies have refuted the claims. Given their denials, the matter has now been escalated to the Director General (Investigation) for a more detailed probe,” Joshi told Parliament.
This investigation marks a significant step in India’s ongoing scrutiny of digital platforms and their pricing strategies. If found guilty, the companies could face penalties and be forced to modify their pricing algorithms to comply with consumer protection laws.
The Bigger Picture: Consumer Protection Laws at Play
The Indian government has been tightening regulations to prevent unfair trade practices in the digital economy. Joshi pointed to the Consumer Protection (E-commerce) Rules, 2020, which prohibit online platforms from discriminating between users of the same category or imposing arbitrary pricing models that affect consumer rights.
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The rules explicitly state that no e-commerce entity can manipulate prices or impose unjustified costs on consumers. This means companies like Ola and Uber are legally bound to maintain transparent and non-discriminatory pricing policies.
Crackdown on Unfair Practices
Beyond this specific case, the government has been rolling out broader consumer protection measures. Recent initiatives include:
Guidelines to curb dark patterns—a set of deceptive online design tricks used to manipulate users into making unintended purchases.
A framework to tackle fake and misleading reviews on e-commerce platforms.
With the ride-hailing probe now in the hands of investigators, all eyes will be on the CCPA’s final report. If evidence of price discrimination is found, Ola and Uber could be slapped with fines and regulatory orders to change their pricing systems in India.
