New Delhi, Aug 21 (PTI) Consumer protection authority CCPA has imposed a penalty of Rs 10 lakh on ride-hailing platform Rapido for misleading advertisements and unfair trade practices, the consumer affairs
ministry said on Thursday.
The Central Consumer Protection Authority (CCPA) also directed Rapido to reimburse customers who used the company's "Auto in 5 minutes or Get Rs 50" offer but did not receive the promised compensation.
The watchdog took action after examining Rapido's advertisements, which promised "Auto in 5 minutes or Get Rs 50" and "Guaranteed Auto," and found them to be false and misleading to consumers.
Data from the National Consumer Helpline showed complaints against Rapido surged to 1,224 between June 2024 and July 2025, compared with 575 complaints in the previous 14-month period.
The CCPA's investigation revealed that disclaimers in Rapido's advertisements were displayed in extremely small, unreadable fonts. The promised Rs 50 benefit was not actual currency but "Rapido coins" worth "up to Rs 50," which could only be used for bike rides and expired within seven days.
"Such restrictions materially reduced the value of the offer and effectively compelled consumers to use another service from Rapido within an unreasonably short time," the ministry said in a statement.
The authority has ordered Rapido to discontinue the misleading advertisements immediately. PTI LUX DRR
