The Central Consumer Protection Authority (CCPA) has imposed a fine of ₹10 lakh on the ride-hailing platform Rapido for misleading advertisements and unfair trade practices. The CCPA has also directed Rapido to reimburse customers who were affected by the company's "Auto in 5 minutes or Get ₹50" offer but did not receive the promised compensation.
The action was taken after the consumer protection authority examined Rapido's advertisements, which promised "Auto in 5 minutes or Get ₹50" and "Guaranteed Auto," and found them to be false and misleading to consumers. The regulatory body took suo moto cognizance of the matter. The CCPA, in its order, directed Rapido to immediately discontinue the misleading advertisements and compensate consumers who were not provided the promised cashback. Each affected consumer is to be paid ₹50, as originally advertised.
The CCPA's investigation revealed several discrepancies in Rapido's advertising practices. Firstly, the disclaimer "T&C Apply" in Rapido's advertisements was displayed in extremely small and unreadable font. Secondly, the promised ₹50 benefit was not actual currency but "Rapido coins" worth "up to ₹50," which could only be used for bike rides and expired within seven days. The CCPA noted that the advertisements did not include the term "up to", and the "T&C Apply" disclaimer was barely visible. This, according to the CCPA, effectively compelled consumers to use another service from Rapido within an unreasonably short time. The regulator's inquiry showed that Rapido created a false impression of assured service when in fact, the ₹50 benefit was paid as in-app tokens valid only for seven days, redeemable only against bike rides.
The CCPA observed that Rapido had engaged in a practice calculated to mislead consumers by both commission and omission, overstating its actual service capability while concealing qualifying conditions for the purpose of promoting its business. The misleading advertisements ran for 548 days across over 120 cities and in multiple languages, which increased the misleading influence of the ads, said CCPA.
Data from the National Consumer Helpline (NCH) showed a significant surge in complaints against Rapido. Between April 2023 and May 2024, 575 complaints were registered. However, this number jumped to 1,224 between June 2024 and July 2025. Most of the complaints were about overcharging, while the next highest related to non-refunds. Complaints about driver misconduct and non-fulfilment of cashback promises also made it on the list. Half of these grievances remained unaddressed by Rapido, the order showed. The unresolved grievances pending in NCH clearly highlight the apathetic attitude towards the consumers, CCPA said.
Along with the monetary penalty, the regulator has ordered Rapido to withdraw the misleading advertisements immediately. The company has also been directed to refund the promised ₹50 in full to all affected users and submit a compliance report within 15 days.
