21 AUG 2025 | New Delhi
The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on online ride-hailing platform Rapido (Roppen Transportation Services Pvt. Ltd.) for publishing misleading advertisements and indulging in unfair trade practices.
Along with the penalty, the CCPA has directed Rapido to compensate all consumers who availed the “AUTO IN 5 MIN OR GET ₹50” offer but did not receive the promised benefit. The company has also been ordered to discontinue such misleading advertisements immediately.
The action follows a detailed probe into Rapido’s advertisements claiming “Guaranteed Auto” and “Auto in 5 min or get ₹50”. The investigation revealed that:
- The ₹50 compensation was not paid in currency but in Rapido coins, redeemable only against bike rides and valid for just 7 days.
- The offer was subject to conditions such as “up to ₹50” and disclaimers shown in extremely small, unreadable fonts.
- The company shifted liability to individual captains, despite prominently advertising the guarantee.
Data from the National Consumer Helpline (NCH) showed 575 complaints against Rapido between April 2023 – May 2024, which rose to 1,224 complaints between June 2024–July 2025. These included issues such as service deficiencies, non-refunds, overcharging, and failure to honor the “5-minute” guarantee.
Rapido operates in over 120 cities and ran the campaign for nearly 1.5 years (548 days) across multiple languages, misleading a large consumer base.
The CCPA invoked its powers under the Consumer Protection Act, 2019, stressing that disclaimers cannot contradict or dilute the main claim of an advertisement. It also urged consumers to be cautious of tall promises like “guaranteed” or “assured” without clear conditions.
Consumers can report misleading advertisements or unfair practices through the National Consumer Helpline (1915) or the NCH app/website.
Source: PIB
