CCPA Imposes ₹10 Lakh Penalty on Rapido for Misleading Advertisements

August 21, 2025 MTIMES 87 Views CCPA penalty, consumer rights India, misleading advertisement penalty, National Consumer Helpline, Rapido auto service, Rapido misleading ads, unfair trade practices, ₹10 lakh fine 3 min read

The Central Consumer Protection Authority (CCPA) has ordered Rapido (Roppen Transportation Services Pvt. Ltd.) to pay a penalty of ₹10,00,000 for running misleading advertisements and engaging in unfair trade practices. Along with the fine, the company has been directed to reimburse consumers who availed the “AUTO IN 5 MIN OR GET ₹50” offer but did not receive the promised compensation. The authority emphasized that refunds must be made in full without any delay or conditions.

Why CCPA Imposes ₹10 Lakh Penalty on Rapido for Misleading Ads

According to the investigation, Rapido misled consumers through claims such as “AUTO IN 5 MIN OR GET ₹50” and “Guaranteed Auto.” However, the benefits were not provided as real currency but instead as “Rapido coins” with a validity of only seven days. These coins could only be redeemed on Rapido bike rides, significantly limiting their value.

The disclaimer “T&C Apply” was displayed in an unreadable font, concealing material information. Moreover, while advertisements suggested the guarantee was offered by Rapido, the terms revealed that the responsibility was shifted to individual drivers, creating further contradictions.

Rising Consumer Complaints Against Rapido

Data from the National Consumer Helpline (NCH) highlights growing dissatisfaction with Rapido’s services. Between April 2023 and May 2024, 575 complaints were filed, while between June 2024 and July 2025, the number rose to 1,224. Issues included non-refund of payments, poor service delivery, overcharging, and failure to provide the “5-minute auto” guarantee.

The steady increase in complaints reflected a pattern of consumer grievances, which eventually led to the CCPA’s intervention. Despite repeated alerts, most issues shared with Rapido remained unresolved, reinforcing the need for strict regulatory action.

Guidelines and Consumer Advisory

The Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, state that disclaimers must not contradict the main claim or hide crucial information. In Rapido’s case, the failure to clearly disclose the conditional “up to ₹50 coins” benefit was deemed deceptive.

Since Rapido operates across more than 120 cities, and the misleading advertisements ran for over 1.5 years in multiple regional languages, the CCPA viewed the violation as serious. Exercising its powers under Sections 10, 20, and 21 of the Consumer Protection Act, 2019, the authority imposed the penalty to safeguard consumer rights.

The CCPA also urged consumers to remain cautious of advertisements that use terms like “guaranteed” or “assured” without providing transparent conditions. Consumers facing similar issues can: