CCPA Imposes ₹10 Lakh Penalty on Rapido for Misleading Advertisements and Unfair Trade Practices

In a decisive move to uphold consumer rights, the Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on online ride-hailing platform Rapido for publishing misleading advertisements and violating provisions under the Consumer Protection Act, 2019. The penalty follows a comprehensive investigation revealing unfair trade practices, false claims, and inadequate redressal mechanisms that misled a wide section of consumers across India.

The Violations: Misleading Claims and Unfair Promises

Disputed Advertisements

The CCPA identified specific false and deceptive advertisements promoted by Rapido, including,

• “AUTO IN 5 MIN OR GET ₹50”
• “Guaranteed Auto”
• Despite the bold claims, these offers were found to be contradictory, unclear, and misleading, especially due to the small, unreadable disclaimers and the non-cash nature of compensation.

Key Findings of the CCPA Investigation

• The promised ₹50 compensation was not in real currency but in Rapido Coins, redeemable only for bike rides and valid for just 7 days.
• The offer was not uniformly guaranteed, as the terms claimed it was extended by individual captains, not Rapido itself.
• The phrase “T&C Apply” was displayed in minuscule font, violating the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022.
• The benefit was marketed as “₹50” but was, in fact, “up to ₹50,” further misleading users.

CCPA Orders and Directives

Immediate Actions Taken

In addition to the ₹10 lakh fine, CCPA issued the following directives,

• Rapido must discontinue the misleading advertisements across all platforms and media.
• The company must reimburse all users who were denied the ₹50 compensation, ensuring refunds are made without delay or further conditions.

Rising Consumer Complaints Against Rapido

National Consumer Helpline Data

Consumer dissatisfaction with Rapido has grown sharply over the past two years,

• 575 complaints between April 2023 – May 2024
• 1,224 complaints between June 2024 – July 2025

Complaints included issues such as,

• Service deficiencies and delays
• Non-refund of paid amounts
• Overcharging
• Failure to fulfill the 5-minute service promise
• The majority of complaints remained unresolved, prompting regulatory intervention.

Legal Basis for the Penalty

The CCPA acted under its powers granted by Section 10 of the Consumer Protection Act, 2019, which empowers it to protect, promote, and enforce consumer rights against misleading practices.

According to the 2022 Advertising Guidelines, disclaimers must,

• Be legible and prominent
• Not contradict the main claim
• Avoid concealing material information

Rapido’s advertisements were found to violate all three principles, leading to regulatory action.