CCPA imposes Rs 10 lakh penalty on Rapido for misleading ads, orders refunds to consumers
The CCPA fined Rapido Rs 10 lakh for misleading “Auto in 5 min or Rs 50” ads, ordering refunds to customers misled by unfair trade practices, after rising consumer complaints nationwide.
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The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on ride-hailing platform Rapido for running misleading advertisements and engaging in unfair trade practices.
The action follows Rapido’s widely promoted “AUTO IN 5 MIN OR GET Rs 50” and “Guaranteed Auto” campaigns, which CCPA found to be deceptive. Consumers were promised Rs 50 if an auto was not provided within five minutes, but the compensation was offered only in the form of “Rapido coins” with a validity of seven days and redeemable only against bike rides. In many cases, the benefit was “up to Rs 50” and not the full amount.
The regulator also directed Rapido to reimburse all consumers who availed the offer but never received the promised compensation, warning the company against running such advertisements in the future.
CCPA’s probe revealed that the disclaimers in Rapido’s ads including “T&C Apply” were printed in tiny, unreadable fonts, contradicting the main claims.
The Authority said this concealment violated the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, which mandate clarity and transparency in consumer communication.
Data from the National Consumer Helpline (NCH) highlighted rising consumer dissatisfaction with 575 complaints were filed against Rapido between April 2023 and May 2024, which more than doubled to 1,224 cases between June 2024 and July 2025.
Complaints ranged from service deficiencies and overcharging to non-refund of payments and failure to honor the “5-minute auto” guarantee.
Rapido, which operates across 120 cities, had run the contested advertisements for nearly 18 months in multiple regional languages. CCPA said the prolonged campaign and its extensive reach had misled a significant number of consumers.
