Lok Sabha Question No. 186 (STARRED), answered on 2025-03-12
Subject: Fare Disparity by Cab Companies
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Balashowry Vallabhaneni, Shri Chavan Ravindra Vasantrao

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK  SABHA

## STARRED QUESTION NO. *186

TO BE ANSWERED ON 12.03.2025

## FARE DISPARITY BY CAB COMPANIES

*186.  SHRI BALASHOWRY VALLABHANENI:

SHRI CHAVAN RAVINDRA VASANTRAO:

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state:

- (a) whether it  has  come  to  the  notice  of  the  Government  about  price  disparity  being  followed  by various cab companies especially Uber and Ola depending upon the customer using iPhone or Android phone and if so, the details and the facts thereof;
- (b) whether  the  Government  has  received  any  complaints  from  the  consumers  against  certain  cab companies for charging different  amount of fare for same travel distance despite having same pick up point, estimate time of arrival and drop off time and if so, the details thereof;
- (c) whether the Government has issued any directives/notice to the cab companies to fix/provide the criteria for deciding the fare in view of its zero tolerance towards unfair trade practice;
- (d) if so, the details thereof and the response received from the cab companies in this regard; and
- (e) whether the Government has taken any punitive action also against the cab companies in such wrong doings and if so, the details thereof?

## ANSWER

## THE MINISTER OF

CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI PRALHAD JOSHI)

(a) to (e)  :   A Statement is laid on the Table of the House.

*****

## STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA  STARRED QUESTION NO.*186 FOR 12.03.2025 REGARDING FARE DISPARITY BY CAB COMPANIES.

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Yes Sir. It has come to the notice of the Department of Consumer Affairs about alleged price disparity  being  followed  by  ANI  Technologies Private  Limited (Ola) and  Uber  India Systems Private Limited (Uber) for cab fares displayed on Android and iOS devices for identical rides.  Accordingly, the Central Consumer Protection Authority (CCPA) issued a letter on 10.1.2025 seeking response from Ola and Uber regarding alleged differential pricing. Ola and Uber have denied the charges.  Since both the companies  have  denied  the  charges,  the  matter  has  been  sent  to  DG  (Investigation)  for  detailed Investigation.

Department  of Consumer  Affairs is continuously working  for consumer  protection and empowerment of  consumers  by  enactment  of  progressive  legislations.  With  a  view  to  modernize  the framework governing the consumer protection in the new era of globalization, technologies, ecommerce markets  etc.  Consumer  Protection  Act,  1986  was  repealed  and  Consumer  Protection  Act,  2019  was enacted.

To safeguard consumers from unfair trade practices in e-commerce, the Department of Consumer Affairs has also notified the Consumer Protection (E-commerce) Rules, 2020 under the provisions of the Consumer  Protection  Act,  2019.  These  rules,  inter-alia,  outline  the  responsibilities  of  e-commerce entities and  specify  the liabilities  of  marketplace  and  inventory  e-commerce  entities,  including provisions for consumer grievance redressal.

In terms of the provisions of these rules, no e-commerce entity shall

- a) manipulate the price of the goods or services offered on its platform in such a manner as to gain unreasonable  profit  by  imposing  on  consumers  any  unjustified  price  having  regard  to  the prevailing  market  conditions,  the  essential  nature  of  the  good  or  service,  any  extraordinary circumstances under which the good or service is offered, and any other relevant consideration in determining whether the price charged is justified.
- b) Discriminate between the consumers of the same class or make  any  arbitrary classification  of consumers affecting their rights under the Act.

These rules also provide that no e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise.

Under the provisions of the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA), an executive agency, came into existence on 24.07.2020. It is designed to intervene, to prevent consumer detriment arising from unfair trade practices and to initiate class action(s), including the enforcement of recalls, refunds and return of products. Its core mandate is to prevent and regulate false or misleading advertisements which are prejudicial to the public interest.

In order to strengthen consumer protection, the CCPA issued the 'Guidelines for Prevention and Regulation of Dark Patterns, 2023' on 30th November 2023. These guidelines address and regulate 13 specific  dark  patterns  identified  in  the  e-commerce  sector,  aiming  to  prevent  deceptive  practices  that mislead consumers.

Bureau of Indian Standards (BIS) introduced the framework on 'Online Consumer Reviews Principles  and  Requirements  for  their  Collection,  Moderation,  and  Publication'  on  23rd  November, 2022.  This  framework  safeguards  consumer  interests  by  addressing  fake  and  deceptive  reviews  in ecommerce. While the standards are voluntary, they apply to all online platforms that publish consumer reviews  and  are  guided  by  principles  such  as  integrity,  accuracy,  privacy,  security,  transparency, accessibility, and responsiveness.