21 Aug 2025 : In a decisive enforcement action, the Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on ride-hailing platform Rapido for disseminating misleading advertisements and engaging in unfair trade practices. The advertisements in question—“Guaranteed Auto” and “Auto in 5 Min or Get ₹50”—have been deemed false, deceptive, and harmful to consumers.
Misleading Claims and Deceptive Disclaimers
The CCPA’s suo-motu investigation scrutinized Rapido’s aggressive ad campaign. While the advertisements promised assured autos within 5 minutes or ₹50 in compensation, the reality was starkly different. Instead of cash, users received “Rapido coins” valued “up to ₹50,” valid only for bike-ride redemptions and expiring in just seven days. Moreover, the disclaimers—“T&C apply” or that the guarantee was offered by individual captains, not the company—were displayed in tiny, barely readable fonts, violating transparency norms and the 2022 Guidelines for Prevention of Misleading Advertisements and Endorsements
Rising Consumer Complaints
Consumer dissatisfaction was also on the rise. The National Consumer Helpline (NCH) registered 575 complaints against Rapido between April 2023 and May 2024. That number more than doubled—to 1,224—from June 2024 to July 2025 Complaints included non-fulfilment of the 5-minute guarantee, overcharging, failure to refund, and poor service—many of which remained unresolved despite being flagged to Rapido
Prolonged Reach and Wide Impact
Rapido’s campaign was far from short-lived—it ran for nearly 548 days (roughly 1.5 years), spanning over 120 cities and spanning multiple regional languages Given the scale and duration, the CCPA invoked its powers under Sections 10, 20, and 21 of the Consumer Protection Act, 2019, to act swiftly in safeguarding consumer interests
CCPA’s Directives to Rapido
In addition to the monetary fine, the CCPA has ordered:
- Immediate discontinuation of the misleading campaign.
- Full, unconditional reimbursement of ₹50 to consumers who didn’t receive the promised compensation.
- Submission of a compliance report within 15 days
Industry Response and Consumer Advocacy
Industry analysts and consumer groups have lauded the CCPA’s move as a significant step toward holding digital platforms accountable. Ashim Sanyal, CEO of Consumer Voice, stressed that such enforcement is crucial to preserve transparency, restore consumer trust, and ensure fair competition in the evolving app-based mobility sector
Summary
The Central Consumer Protection Authority (CCPA) has fined Rapido ₹10 lakh for misleading advertisements related to its “Guaranteed Auto” and “Auto in 5 Min or ₹50” campaigns. The probe found that Rapido failed to deliver on its promises and instead compensated customers with “Rapido coins” usable only on bike rides, valid for seven days, rather than direct ₹50 refunds. The disclaimers in the ads were displayed in tiny, unreadable fonts, violating the 2022 guidelines against misleading advertising.
Consumer complaints against Rapido rose sharply, with over 1,200 cases registered in the past year regarding non-fulfilment of promises, overcharging, and poor redressal. The misleading campaign ran for nearly 1.5 years across more than 120 cities. Along with the fine, CCPA has ordered Rapido to stop the advertisements, reimburse affected consumers with ₹50 in cash, and submit a compliance report within 15 days.
Consumer advocates hailed the decision as a necessary step to protect users from deceptive practices by digital mobility platforms.