Rapido Fined ₹10 Lakh for Deceptive Ads
CCPA penalizes Rapido for misleading auto ride claims.
The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on ride-hailing platform Rapido for misleading advertisements and unfair trade practices, the Ministry of Consumer Affairs announced on Thursday. The regulator has also ordered Rapido to refund customers who were misled by the company’s “Auto in 5 minutes or Get ₹50” and “Guaranteed Auto” campaigns, which failed to deliver on their promises.
The CCPA’s investigation found that Rapido’s advertisements created a false impression of assured auto-rickshaw services within five minutes. However, the promised ₹50 compensation for delays was not paid in cash but as “Rapido coins,” which carried significant restrictions. These coins, valid for only seven days, could only be redeemed for bike rides, not auto services, effectively forcing consumers to use another Rapido service under unfair conditions. The authority noted that disclaimers about these limitations were displayed in tiny, unreadable fonts, further misleading customers.
Data from the National Consumer Helpline revealed a sharp rise in grievances, with 1,224 complaints against Rapido between June 2024 and July 2025, up from 575 in the prior 14 months. Issues included overcharging, non-refunded payments, driver misconduct, and unfulfilled cashback promises. The CCPA highlighted that the misleading ads ran for 548 days across 120+ cities in multiple languages, amplifying their deceptive impact.
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In its defense, Rapido claimed its terms and conditions clarified that customers would receive coins “up to ₹50” for bike rides, valid for seven days. However, the CCPA criticized the company for omitting the “up to” qualifier in ads and for barely visible disclaimers, which misled the average consumer. The authority accused Rapido of engaging in “deceptive practices by both commission and omission,” overstating service reliability while concealing key conditions.
The CCPA has directed Rapido to immediately discontinue the misleading advertisements and reimburse affected customers the full ₹50 in cash, without delays or conditions. Rapido must also submit a compliance report within 15 days. This action underscores the CCPA’s ongoing efforts to curb misleading advertising in India’s digital services sector, ensuring greater transparency and accountability for consumers.
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