In a landmark step to safeguard consumer rights, the Central Consumer Protection Authority (CCPA) has fined online ride-hailing platform Rapido ₹10 lakh for running misleading advertisements and violating the Consumer Protection Act, 2019.
Misleading Claims
Rapido’s ads, including “Auto in 5 Min or Get ₹50” and “Guaranteed Auto”, were found deceptive. Investigations revealed that the promised ₹50 compensation was not real money but “Rapido Coins,” valid only for bike rides and for 7 days. Terms like “up to ₹50” and hidden disclaimers in tiny fonts further misled users.
CCPA’s Orders
Along with the penalty, Rapido has been directed to:
- Withdraw misleading ads from all platforms.
- Refund users who were denied the promised ₹50 compensation.
Rising Complaints
Consumer complaints against Rapido surged from 575 (2023–24) to 1,224 (2024–25), citing service delays, overcharging, non-refunds, and unfulfilled promises.
Legal Stand
The action is based on Section 10 of the Consumer Protection Act and 2022 Advertising Guidelines, which require disclaimers to be clear, visible, and non-contradictory.
The case highlights the government’s growing crackdown on unfair digital trade practices to protect consumer interests.
