Zero tolerance for consumer exploitation: Pralhad Joshi

New Delhi, Dec 28 There will be zero tolerance for consumer exploitation, said Union Minister of Consumer Affairs Pralhad Joshi over price differentiation between iPhone and Android users on ride-hailing apps.

Joshi said this while responding to a media report that claimed that ride-hailing apps’ algorithms were programmed to charge Apple users higher than those using Andriod phones.

“This prima facie looks like unfair trade practice where the cab aggregators are alleged to be using Differential Pricing based on the factors mentioned in the article. If so, this is blatant disregard to consumer’s right to know,” Joshi said in a post on social media platform X.

Noting “zero tolerance for consumer exploitation,” he directed the Central Consumer Protection Authority (CCPA) to examine instances of pricing discrepancies. Besides ride-hailing apps, the Union Minister also ordered inquiry into such practices among food delivery apps and online ticket booking apps.

“I have directed @jagograhakjago through CCPA to conduct a detailed inquiry into this and submit a report at the earliest. Have asked the department to look into other sectors as well like, food delivery apps, online ticket booking apps, etc,” Joshi said.

The probe follows media reports highlighting price disparities between mobile platforms for the same journey.

Earlier, Niraali Parekh, Founder and Creative Director of Bokap Designs, also highlighted the price difference between Android and one iPhone while booking an Uber ride.

In a LinkedIn post, he recounted how his colleague who booked an Uber ride using Android and iPhone phones simultaneously, for the same pick-up and drop-off points saw significant differences in fares.

“On Android, the fare was Rs 290.79 and on iPhone, the fare jumped to Rs 342.47,” he said.

While some users called the pricing strategy an inevitable consequence of a data-driven business model, others stated that this model also works on MakeMyTrip while booking hotels.

Source: IANS