Rapido fined ₹10L for misleading ads, not refunding customers
What's the story
The Central Consumer Protection Authority (CCPA) has slapped a ₹10 lakh fine on ride-hailing service Rapido for misleading advertising and unfair trade practices. The CCPA also directed the company to refund customers who availed its "Auto in 5 minutes or Get ₹50" offer but didn't receive the promised compensation. The action comes after an examination of Rapido's advertisements promising "Auto in 5 minutes or Get ₹50" and "Guaranteed Auto," which were found to be false and misleading to consumers.
Rising grievances
Over 1,200 complaints against Rapido
The National Consumer Helpline (NCH) has recorded a sharp increase in complaints against Rapido, with figures soaring to 1,224 between June 2024 and July 2025. This is a significant jump from the 575 complaints received during the previous 14-month period. The majority of these complaints pertain to the service deficiencies, non-refund of payments, overcharging, as well as failure to provide promised services.
Advertisement scrutiny
Disclaimers in ads unreadable, 'Rapido coins' not real currency
The CCPA's investigation also revealed that the disclaimers in Rapido's advertisements were displayed in extremely small, unreadable fonts. The promised ₹50 benefit was not actual currency but "Rapido coins" worth "up to ₹50," that could only be used for bike rides and expired within seven days. Despite operating in over 120 cities and running the misleading campaign for about 548 days across different regional languages, most consumer complaints are unresolved despite being shared with the company.
Consumer alert
CCPA urges consumers to be wary of such advertisements
The CCPA has urged consumers to be wary of advertisements promising "guaranteed" or "assured" services without clear terms and conditions. It also emphasized that disclaimers must not contradict main claims or conceal material information. The authority has ordered Rapido to discontinue the misleading advertisements immediately.