Ola, Uber Face Consumer Authority Notices Over Price Disparities Between iPhone and Android Users

Ola and Uber face CCPA notices over allegations of charging higher fares to iPhone users compared to Android users. Consumer Affairs Minister Pralhad Joshi called it an "unfair trade practice" and demanded responses from the companies. This investigation could influence regulatory measures in India's app-based service industry.

Cab aggregators Ola and Uber have come under scrutiny from the Consumer Protection Authority (CCPA) for allegedly implementing differential pricing based on users’ mobile operating systems. Reports suggest that consumers using iPhones were charged higher fares compared to Android users.

Consumer Affairs Minister Pralhad Joshi disclosed this development on Thursday via a post on X (formerly Twitter), emphasizing the government’s commitment to ensuring fair practices. "The Department of Consumer Affairs, through the CCPA, has issued notices to major cab aggregators Ola and Uber seeking their responses to these allegations," he wrote.

The issue first surfaced last month when Joshi highlighted the need to eliminate consumer exploitation. He described such pricing practices as "prima facie unfair trade practices" and a clear violation of consumers' right to transparency. The minister had also directed the CCPA to initiate a thorough investigation into the matter.

This move underscores the government’s zero-tolerance approach toward unfair trade practices in digital services. If proven guilty, Ola and Uber could face significant penalties and stricter regulatory oversight.

Both companies are yet to release official statements in response to the allegations. Industry experts believe this case could set a precedent for consumer protection in India’s growing app-based service sector.

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The notices have sparked discussions among consumers and policymakers, with many calling for better oversight of algorithms and practices employed by digital platforms.