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Govt Issues Notices to Uber, Ola Over Differential Pricing Claims

Govt issues notices to Uber, Ola over alleged differential pricing claims. News highlights consumer complaints about higher fares for iPhone users versus Android users.

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Manisha Sharma
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Uber, Ola Get Notice

Uber, Ola Get Notice Photograph: (Uber, Ola Get Notice)

The Union Food and Consumer Affairs Ministry investigated suspected unfair trade practices and served notices to Ola and Uber operators. The Central Consumer Protection Authority (CCPA) issued notices to companies demanding explanations about differential pricing claims according to Consumer Affairs Minister Pralhad Joshi.

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Following extensive social media reports of iPhone users being charged more than Android users receiving the same rides Ola and Uber now face notices about their alleged discriminatory pricing policies.

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The Department of Consumer Affairs through the CCPA sent notices to prominent cab aggregators #Ola and #Uber concerning apparent #DifferentialPricing based on mobile device differences according to their models (#iPhones/ #Android) Joshi announced on X (formerly known as Twitter).

During a speech in December 2024 Minister Joshi declared that exchanges of consumer exploitation will receive no tolerance. Through online posts he reacted to instances where iPhone users paid higher rates for ride-hailing than Android users which he identified as possible trade practice abuses.

 “This prima facie looks like an unfair trade practice where cab aggregators are allegedly using differential pricing based on factors mentioned in the article. If true, this is a blatant disregard for the consumer’s right to know,” he stated in a post on X.

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The Minister has tasked CCPA to perform a thorough investigation of the price manipulation claims before they deliver their complete findings. Ride-hailing platforms face inspection alongside food delivery and online ticket-booking platforms as part of this investigation.

“I have directed @jagograhakjago, through the CCPA, to conduct a detailed inquiry and submit a report at the earliest. The department has also been asked to examine other sectors, such as food delivery and online ticket booking apps,” Joshi added.

Social media users published video evidence and payment screenshots that revealed price differences between iPhone and Android users using the transport services on the same route. The company Uber has dismissed these accusations of price manipulation by explaining them through system capacity and surge periods yet Ola has maintained complete silence.

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Lasting debates swirl around the matter of algorithm price transparency that digital platforms utilize. Consumer trust suffers erosion when defendants show evidence indicating price discrimination practices against customers. Critics say these practices break fundamental fair trade guidelines.

The public raised matching worries about delivery platforms and quick-commerce services. Joshi urges businesses to maintain complete transparency through their digital platforms because this approach protects consumers from exploitation. The government steps forward proactively to protect consumer rights while tackling upcoming challenges that affect the digital economy. The companies Ola and Uber have not provided formal responses to the government notices yet but their future statements will guide further decisions.

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