New Delhi: Rapido has been penalised by Central Consumer Protection Authority (CCPA) for misleading advertisements and unfair trade practices. The authority imposed a fine of Rs 10 lakh on the ride-hailing platform, the consumer affairs ministry confirmed on Thursday.
Rapido was also asked to pay customers who used the company’s “Auto in 5 minutes or Get Rs 50” offer but were not given the promised compensation from the company. Acting tough, the Union Ministry of Consumer Affairs, Food & Public Distribution said the amount should be reimbursed the said amount in full without any further delay or condition.
Why did CCPA imposed penalty on Rapido
The action was taken against Rapido for its misleading advertisements – ‘AUTO IN 5 MIN OR GET ₹50’ and ‘Guaranteed Auto’. The CCPA initiated action against the ride-hailing platform after detailed examination of the advertisements and consumer complaints.
The CCPA took cognisance after the National Consumer Helpline (NCH) showed that 575 complaints were filed against Rapido between April 2023 and May 2024 and 1,224 complaints between June 2024 and July 2025.
While examining the advertisements of Rapido, the CCPA found that the disclaimer “T&C Apply” in Rapido’s advertisements was displayed in an extremely small and unreadable font.
Also, Rapido promised Rs 50, but it was actually “Rapido coins”, and even then, the benefit was “up to ₹50” and not always exactly ₹50. Also, the coins were supposed to be redeemed against Rapido bike rides and that too in a span of 7 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. Such omissions created a false impression of assured service and misled consumers into choosing Rapido,” the official release stated.
In regards to “Auto in 5 min or get ₹50” advertisement, Rapido’s terms and conditions stated that the guarantee was being offered by individual captains and not by Rapido itself. The authority was of the view the advertisement’s claim was contradictory as it attempted to shift liability away from the company, misleading consumers about the very assurance made in the ad.
The action against Rapio was taken as per the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022 which states that disclaimers in advertisements shall not contradict the main claim, conceal material information, or be used to correct a misleading claim.
“In Rapido’s case, the claims ‘Guaranteed Auto’ and ‘Auto in 5 min or get ₹50’ created an impression that consumers would invariably receive ₹50 if the auto was not provided within 5 minutes. However, the material limitation that the benefit was restricted to ‘up to ₹50’, and that too only in the form of Rapido coins with a short validity, was either omitted or not disclosed with equal prominence. This concealment and lack of clarity rendered the advertisement deceptive, directly contravening the requirements under said Guidelines,” the Ministry of Consumer Affairs, Food & Public Distribution said.