In a recent development, the Central Consumer Protection Authority (CCPA) has imposed a significant ₹10 lakh penalty on Rapido, an online ride-hailing platform, for disseminating misleading advertisements and breaching consumer protection laws. The penalty was enforced following an investigation that uncovered deceptive trade practices, false claims, and inadequate grievance redressal mechanisms that misled consumers across India.
The Violations: Misleading Claims and Unfair Promises
- Rapido promoted false advertisements, including claims like “AUTO IN 5 MIN OR GET ₹50” and “Guaranteed Auto,” which were found to be contradictory and misleading.
Key Findings of the CCPA Investigation
- The promised ₹50 compensation was in Rapido Coins, redeemable only for bike rides and valid for 7 days.
- The offer was not uniformly guaranteed, as per the terms.
- The disclaimer “T&C Apply” was displayed in a minuscule font, violating guidelines.
- The benefit was marketed as “₹50” but was actually “up to ₹50,” further misleading users.
CCPA Orders and Directives
- Rapido is required to cease all misleading advertisements and refund users denied the ₹50 compensation.
Rising Consumer Complaints Against Rapido
Consumer dissatisfaction with Rapido has surged over the past two years, with a notable increase in complaints related to service deficiencies, non-refund of payments, overcharging, and failure to fulfill the 5-minute service promise.
- 575 complaints between April 2023 – May 2024
- 1,224 complaints between June 2024 – July 2025
Legal Basis for the Penalty
The CCPA imposed the penalty in accordance with Section 10 of the Consumer Protection Act, 2019, to safeguard consumer rights against misleading practices. Rapido’s advertisements were found to violate the 2022 Advertising Guidelines by displaying disclaimers that were illegible, contradictory, and concealed crucial information.
Key Takeaways for Competitive Exams
- CCPA imposed a ₹10 lakh penalty on Rapido for misleading advertisements and unfair trade practices.
- Rapido’s deceptive ads, including claims like “AUTO IN 5 MIN OR GET ₹50,” were found to be misleading and in violation of consumer protection rules.
- The company must discontinue these ads and refund users denied compensation.
- Consumer complaints against Rapido have risen significantly, highlighting issues such as service delays, overcharging, and unfulfilled promises.
- CCPA acted under its powers granted by the Consumer Protection Act, 2019, to protect consumers from deceptive marketing tactics.
