R. Suryamurthy
The Central Consumer Protection Authority (CCPA) has hit the ride-hailing platform Rapido with a ₹10 lakh penalty for its “misleading and unfair” advertisements, a move aimed at protecting consumer rights. The action follows a detailed investigation into a campaign that promised customers “Auto in 5 min or get ₹50.”
In addition to the fine, the CCPA has ordered Rapido to compensate all consumers who were denied the promised ₹50 despite the service failing to meet the five-minute deadline.
The CCPA’s investigation, prompted by a surge in consumer complaints, found the ads to be deceptive on multiple fronts. Key issues included:
Deceptive ‘Compensation’: The promised ₹50 wasn’t cash but “Rapido coins,” which could only be used for bike rides and expired in just seven days. This significantly devalued the offer and forced consumers to use a different service from the company within a short timeframe.
Contradictory Fine Print: While the ad boldly claimed “Guaranteed Auto” and “Auto in 5 min or get ₹50,” the fine print stated the guarantee was from individual drivers, not Rapido itself. This attempt to shift liability was found to be a direct contradiction of the primary claim.
Unreadable Disclaimers: The “T&C Apply” disclaimer was displayed in a font so small it was effectively unreadable, failing to properly inform consumers of the offer’s significant limitations.
The CCPA noted a sharp rise in complaints against Rapido, with the National Consumer Helpline receiving 1,224 grievances between June 2024 and July 2025 alone. Many complaints cited overcharging, service failures, and non-fulfillment of promised services—issues that often went unresolved.
The CCPA emphasized that according to the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, disclaimers cannot be used to contradict or conceal material information. By omitting the crucial details about the nature and validity of the compensation, Rapido created a false impression of a valuable, assured service.
With the misleading campaign running for over 1.5 years across 120 cities in multiple languages, the CCPA’s action underscores its commitment to holding companies accountable for deceptive marketing. The authority urged consumers to be wary of advertisements that make “tall promises” or use phrases like “guaranteed” without clearly explaining the conditions.