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August 21, 2025 3:07 PM IST

₹10 lakh | AUTO IN 5 MIN OR GET ₹50 | unfair trade practice | Consumer Protection | ChatGPT said: CCPA | Rapido | misleading advertisement | penalty

CCPA imposes ₹10 lakh penalty on Rapido for misleading advertisements

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on online ride-hailing platform Rapido, operated by Roppen Transportation Services Pvt. Ltd., for publishing misleading advertisements and engaging in unfair trade practices.

The authority has also directed Rapido to ensure that all consumers who availed the “AUTO IN 5 MIN OR GET ₹50” offer and did not receive the promised compensation are reimbursed in full without any further delay or condition.

CCPA took note of Rapido’s advertisements claiming “Guaranteed Auto” and “Auto in 5 Min or Get ₹50,” which, after detailed examination, were found to be false, misleading, and unfair to consumers. The advertisements have been ordered to be discontinued with immediate effect.

Data from the National Consumer Helpline (NCH) showed that the platform received 575 complaints between April 2023 and May 2024, which increased to 1,224 complaints between June 2024 and July 2025.

The CCPA’s investigation revealed that the disclaimer “T&C Apply” was displayed in an extremely small and unreadable font. The promised ₹50 benefit was not in actual currency but in the form of “Rapido coins,” which could only be redeemed for bike rides and were valid for just seven days. Additionally, the benefit was “up to ₹50” and not guaranteed, creating a misleading impression of assured service.

Further scrutiny showed that while the advertisements claimed “Auto in 5 min or get ₹50,” the terms and conditions stated that the guarantee was being offered by individual captains and not by Rapido itself. This contradictory information misled consumers about the assurances made in the advertisements.

According to the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, disclaimers should not contradict the main claim, conceal material information, or be used to correct a misleading claim. In Rapido’s case, the lack of clear disclosure of the limitations rendered the advertisements deceptive, directly violating these guidelines.

CCPA noted that over the last two years, complaints against Rapido have steadily risen, including grievances about service deficiencies, non-refund of paid amounts, overcharging, failure to provide promised services, and non-fulfillment of the guaranteed 5-minute service. Most of these complaints remained unresolved despite being brought to the company’s notice.

Rapido, which operates in over 120 cities, ran the misleading advertisements for nearly one and a half years in multiple regional languages. Considering the wide reach and prolonged duration of the campaign, CCPA, established under Section 10 of the Consumer Protection Act, 2019, intervened to protect consumer interests.

 

Last updated on: 21st Aug 2025