The Central Consumer Protection Authority (CCPA) has imposed penalties of Rs 10 lakh each on Justdial and Ola, ruling that both companies engaged in misleading advertisements and unfair trade practices. The regulator determined that Justdial failed to verify licenses for sellers listing ammonium nitrate, while Ola utilized dark patterns to pressure users into paying extra before rides. Both companies were ordered to comply with the orders within 15 days.
Justdial received the fine on October 28, 2026, for displaying listings of ammonium nitrate without disclosing legal restrictions or verifying sellers’ Petroleum and Explosives Safety Organisation licenses. The CCPA rejected the company’s defense that it acted merely as an intermediary under the Information Technology Act, noting that its platform ranked sellers, displayed prices, and charged subscription fees. The regulator stated that a telephone directory does not attach verified badges or provide one-click contact facilities. Justdial was directed to stop listing regulated explosives and submit a compliance report. The investigation found that some listings had remained accessible for up to 20 years despite claims of regular reviews.
Ola, operated by ANI Technologies, was fined on November 10 for its pre-ride tipping feature, which the CCPA described as converting a voluntary gratuity into a pre-service toll. The app prompted waiting users with messages suggesting that adding money could increase their chances of securing a ride faster. Initial prompts offered amounts between Rs 10 and Rs 40, which later increased to Rs 140, with custom options up to Rs 499. The CCPA classified these prompts as a confirm shaming dark pattern that created a sense of fear among users. Ola argued that the payments were voluntary and went entirely to drivers, but the regulator found the design misleading.
Data submitted by Ola to the CCPA revealed that between June 1 and 15, 2026, users paid approximately Rs 56 lakh in add-ons across Delhi, Bengaluru, and Mumbai. The share of users paying the add-on rose in all three cities over the preceding year. The CCPA noted that Ola continued the feature despite warnings from the Ministry of Road Transport and Highways, which had directed aggregators to remove pre-ride tipping prompts in August 2026. The regulator highlighted that the practice particularly affected vulnerable users at hospitals and transport hubs. Both fines represent the maximum penalty for a first offense under the Consumer Protection Act, 2019.